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Turnover Surges 22.0% to RMB848.1 Million
Profit Attributable to Equity Shareholders Increases 21.2% to RMB330.9 Million
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HONG KONG, Mar 1, 2013 - (ACN Newswire) - Hosa International Limited ("Hosa" or the "Company" and, together with its subsidiaries, the Group"), one of the largest indoor sportswear brands in China, announced its annual results for the year ended 31 December 2012 (the "year under review").
During the year of 2012, in spite of the relatively sluggish economy in general, the Group maintained its stable and healthy growth trend. As of 31 December 2012, the Group recorded a growth with a turnover of RMB848.1million (2011: RMB695.2 million), an increase of 22.0% compared to 2011. Net profit attributable to shareholders of the Company amounted to RMB330.9 million (2011: RMB273.1 million), representing a growth of 21.2% compared to 2011. Gross profit was RMB514.2 million (2011: RMB432.6 million), representing an increase of 18.9% compared to 2011. Gross profit margin and net profit margin both steadily maintained at 60.6% and 39.0% respectively. Basic earnings per share steadily maintained at RMB0.21 (2011: RMB0.22). The board of directors proposed a dividend payout of HK6.3 cents per share for the year ended 31 December 2012 (2011: HK8.4 cents per share).
Mr. Shi Hongliu, Chairman and Executive Director of Hosa said, "In the year of 2012, despite the relatively weak PRC economy, the Group achieved its development objectives and laid a strong foundation for its sustainable development in the future by adhering to its long-term development strategies and successfully implementing its annual development strategies. During the year under review, the Group boosted its financial results through three ways, namely focusing on the enhancement of its professional product research and development capabilities, optimizing its sales outlet network, and reinforcing and promoting the professional image of its brand, which in turn further strengthened the Company's existing competitive edges in the target markets. The Group continued to significantly outperform its competitors in 2012 in the indoor sportswear market, including swimwear, fitness wear and sports underwear product lines.
In 2012, increase in the Group's turnover was mainly attributable to the increases in the turnover of each store, unit prices, the number of retail outlets and the sales of the virtual stores. During the year under review, the three main product lines, swimwear, fitness wear products and sports underwear, recorded an outstanding turnover of approximately RMB304.0 million, RMB207.6 million and RMB301.6 million respectively, representing an increase of 28.1%, 33.7% and 11.6% respectively compared to the preceding year and accounted for 35.8%, 24.5% and 35.6% respectively out of the total sales. Due to the optimization of the product structure and continuous product positioning towards higher-end products, the average selling prices increased approximately 43.2%, 1.4% and 9.1% for swimwear, fitness wear and accessories respectively. The average selling price of sports underwear slightly decreased 3.2% due to the change of product mix.
After experiencing rapid expansion of its outlet network in 2010 and 2011, in order to maintain the brand image and quality of its outlets, the Group placed emphasis on outlet establishment by streamlining existing outlets, adjusting layout, renovating and enhancing outlets, while continuing to open outlets in new markets as scheduled in 2012. As at 31 December 2012, the Group had 1,330 physical retail outlets in the PRC, representing an increase of 118 outlets as compared to the number of outlets in the year 2011.
The Company focuses on the unique consumption trends in China and adopts effective brand promotion strategies and diverse marketing channels to enhance brand value to continuously influence the Company's reputation as China's quality and stylish indoor sportswear brand. Focusing on enhancing the brand personality as being professional, active and fashionable, the Group continued to carry out accurate and highly efficient brand promotion campaign which focused on target customers in 2012 with events including the Hosa Cup China Fitness Wear Design Contest, the release of Swimwear Trends, the International Yoga Assembly and the National Aerobic Gymnastics Contest, and sponsorship of various top model contests and pageants and Hosa Stretch It Out - Yoga Changes Your Life, a four-month large-scale public charity activity which was broadcasted by hundreds of TV stations and featured dozens of celebrities. The above events and sponsorship significantly enhanced the image of the "Hosa" brand and strengthened its leading position in the target markets. In June 2012, the "Hosa" brand became the only indoor sportswear brand which was again recognized as one of the China's 500 Most Valuable Brands by the World Brand Lab with a brand value estimated at RMB2.118 billion.
In 2012, the Group continued to place the enhancement of its product research and development capability as one of the top priorities, and also increased the investment in research and development. In 2012, the Beijing Research and Development Centre of the Group was officially established and put into operation. The commencement of the Research and Development Centre will substantially enhance the design (i.e. functions, prototype and style) of its products, and will further strengthen its competitive edges in the indoor sportswear industry. Meanwhile, for product design, the Group signed a contract with a French professional design company, covering product design cooperation during the whole year of 2013. For product research and development, the Group signed design and research and development agreements with domestic high schools and research institutions in 2012, and obtained 10 self-developed patents and 2 exclusively licensed patents. As a result, the functionality of the high-technology products of the Group will be further enhanced. As such, the competitive strengths of its fitness wear and swimwear products will be further enhanced in 2013. In 2012, the proportion of the Group's investment in research and development was 4.1%.
Mr. Shi concludes, "Looking forward, there will still be tremendous room for growth in the PRC indoor sportswear market, and the growth of demand will remain strong. The construction of indoor stadiums, which was driven by the urbanization in the PRC, the increasing health awareness of consumers, the growing popularity of indoor sports among urbanites, the promotion of sports and exercises throughout the nation and the rising demand of consumers for products portraying professionalism will continue to provide considerable development opportunities to the Group. The Group will continue to promote the construction of the Hosa Research and Development Centre and the domestic and international cooperation in research and development, to strengthen its control over the outlets and increase the consumer coverage, to promote the construction of the yoga fitness gyms and the sales cooperation with professional yoga fitness gyms and aquatic facilities, to support its key distributors to commence e-commerce business, to increase the effort in brand and product promotion and to give comprehensive facelift to its outlets. The Company will continue to maintain our leading position by continuously enhancing brand value, presenting excellent results to shareholders."
Topic: Press release summary
Source: Hosa International Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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