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- Turnover Climbed 20.3% to RMB563.5 Million
- Profit Attributable to Equity Shareholders Rose 28.2% to RMB199.4 Million
- Further expand the sports and health product line and proactively develop the online and offline interacting sales |
HONG KONG, Aug 7, 2014 - (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, today announced its interim results for the six months ended 30 June 2014 (the "period under review").
In the first half of 2014, Hosa followed its sound and healthy development strategy, and responded proactively to the changes in the market environment. The Group continued to attain a steady growth in its business with each operating indicator maintained a steady and healthy growing trend, which further reinforced and enhanced the leading position of Hosa in the indoor sportswear market in China. During the six months ended 30 June 2014, the Group recorded a growth with a turnover of RMB563.5 million (2013: RMB468.3 million), an increase of 20.3% compared to the same period of 2013. Gross profit amounted to RMB305.2 million (2013: RMB278.7 million), representing a growth of 9.5% over the same period of 2013. Profit before taxation rose 15.7% to RMB237.7 million (2013: RMB205.5 million). Profit attributable to equity shareholders increased 28.2% to RMB199.4 million (2013: RMB155.6 million). Gross profit margin was 54.2%. Basic earnings per share were RMB 12.0 cents (2013: RMB9.7 cents). The Board proposed to declare an interim dividend of HK5.3 cents (equivalent to approximately RMB4.2 cents) per share for the six months ended 30 June 2014.
Mr. Shi Hongliu, Chairman and Executive Director of Hosa remarked, "During the period under review, the Group made active response to seize the opportunities offered by the booming sports industry and the specialized market. Besides, we continued to focus on the consumption demand of the fitness and swimming sectors to actively promote innovation and reform regarding the strategy of the Group, industrial structure, product structure, structure of the channel and the outlet model to promote sustainable and steady growth and the new strategic layout of the Group. These measures achieved great success and laid a sound foundation for the future development of the Group."
During the six months ended 30 June 2014, the turnover of the Group's swimwear product, fitness wear product and sports underwear product reached RMB276.1 million, RMB169.3 million and RMB118.1 million respectively, representing an increase of 10.3%, 42.6% and 18.9% respectively over the same period in 2013.
In order to meet the multi-faceted demand from both the fitness and swimming communities, the Group currently possesses two brands of apparel products, namely Hosa and Water Cube. Subsequent to the introduction of Water Cube brand apparel in 2013, the Group continued to ramp up the promotion for Water Cube brand apparel in 2014, and by leveraging on its brand influence, high professional standard and price-performance ratio, the Group swiftly captured a sizeable share of the teenage and mid-end swimwear market. In the first half of 2014, the turnover of Water Cube Brand swimwear, is approximately RMB90 million, representing a boost of 162% over the same period in 2013.
In order to adapt to the development of mobile internet, e-commerce and the changes in consumers' consumption patterns and to improve sales channels' selling cost, the Group was committed to the innovation of sales channels, the transformation of distributors according to changes in market conditions and the promotion of omni-channel marketing. In 2014, the Group supports and encourages well-developed resellers with the transition consciousness to develop online shops and micro-malls. With special focus on the venues frequented by the Group's product users, the Group also facilitates the development of professional channels including swimming facilities and fitness rooms. Meanwhile, in the first half of 2014, the Group's online and offline sales outlets both showed progress, where the online sales outlets primarily involved the development of e-commerce platforms, e-commerce vertical integration and online shops and micro-malls of mobile community platforms, while offline sales primarily involved promoting the construction of professional channel outlets including the HOTTO water lifestyle international brand collection store, the indoor fitness store, fitness rooms and swimming facilities.
Hosa has devoted a considerable amount of its resource to research and development. The Group has established a seasoned research and development team for indoor sports apparel that is familiar with the demand of indoor sportswear in China's consumer market. The Group has created a globalized and professional research and development system formed by domestic and foreign professional cooperating institutions including Hosa International Beijing Design Centre, Hosa International Fujian Technology Centre, French Design Studio and function and prototype expert team from Japan as well as the Asian Fitness Academy. Equipped with near 20 years of experience in indoor sportswear design, rich professional knowledge and technological build-up as well as its global network of functional development and technology of indoor sportswear, Hosa is able to continuously enhance its competitive strength in terms of the professional design, fashion design, functional development and technology of indoor sportswear and thus maintained the market competitiveness of the Group's products. In the first half of 2014, the Group passed the certification for FINA Swimwear Approval.
Focusing on enhancing the brand personality as being natural, healthy and joyful, the Group continued to carry out accurate and effective brand promotion and marketing campaigns which focused on our target customers, and dedicated to promoting a pleasant and healthy lifestyle. To promote a fitness culture, in the first half of 2014, the Group sponsored events such as Hosa Cup Yoga Fitness Conference, Shanghai Citizens Diving Competition and Beijing Half-Marathon Relay Race, and continued to collaborate with The Asian Fitness Academy in organizing the Vibrant Asia - Fitness Carnival event in a number of cities in the country. Meanwhile, to improve the professional image of its products, the Group sponsored professional events such as Hosa Cup National Swimming Championship Competition for the Asian Games Selection as well as the professional swimming team. In the first half of 2014, the Group also held and sponsored events including Swimwear Trends in China, Swimwear Design Contest, the World Supermodel Contest, International Bikini Contest and China's Super Model Contest. Great market feedback was received through the above promotional events and the Hosa brand's influence and professional status were also effectively raised.
In 2014, the excellent operating result of the Group was widely recognized by the market, thereby increasing its brand influence. In 2014, the Group was again in "China's 500 Most Valuable Brands" assessed by World Brand Lab with brand value of RMB3.5 billion. The Group was also selected in the Forbes' List of "Top 100 Strongest Potential Companies in China 2014" by Forbes Magazine.
As for Hosa's current three product lines - fitness and yoga apparel, swimwear and sports underwear, according to the forecast made by Frost & Sullivan, for the coming 5 years, the compound annual growth rate of fitness wear market is expected to remain at the high level of 34.5%, while the compound annual growth rate of swimwear market and sports underwear market is expected to remain at 18.9% and 19.3% respectively. By 2018, based on ex-factory sales, the market scale of fitness wear, swimwear and sports underwear will amount to RMB15 billion, RMB6.9 billion and RMB1.65 billion, respectively. The group believes that a comparatively large potential market is there for Hosa's current product lines.
Mr. Shi Hongliu, Chairman and Executive Director of Hosa concluded, "Looking forward, there will still be tremendous room for growth of the PRC sports and health industry which is at the flourishing stage, and the growth of demand will remain strong. The construction of stadiums, which was driven by the urbanization in the PRC, the growing number of consumers who want a healthy life style, the fashion of fitness, the promotion of sports and exercises and support to health industry from the PRC government and the rising demand of consumers for products and services in terms of personalized need and professionalism provide the Group with an important opportunity for future development. In the future, the Group will continue to strengthen the advantage on brand, resource and professionalism in sports and health industry, develop business pinpointing at the consumer group which enjoys fitness lifestyle and satisfy the comprehensive demand for fitness products, equipment and services of the targeted consumers. The Group will promote the development of the industry and bring satisfactory return to shareholders with excellent results."
The Group will continue to promote and improve the measures and strategies implemented in 2014. Regarding the long-term plans, the Group will formulate and promote the O2O strategies in line with the development of the mobile internet and realize the online and offline interacting sales. The Group plan to form the basic model within two years and embark on promotion. Meanwhile, the Group plans to improve the application platform. A huge data base about sports and health will be established preliminarily within three years, which will create an ecosphere of sports and health industry that covers all products and services of the industry. Banking on the information collected by the huge data base system of sports and health and fitness service, the Group will develop smart wearable fitness products and realize the bulk sales of some of the products by 2015.
The Group believes that the promotion and implementation of the each of above measures will safeguard the continuous growth of the Group in short-, mid- and long-terms and maintain the leading position of the Group in the PRC sports and health industry.
Topic: Press release summary
Source: Hosa International Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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