DGAP-News: KINGHERO AG: Successful financial year 2011
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Final Results
KINGHERO AG: Successful financial year 2011
19.04.2012 / 08:05
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- Revenues of EUR 101.5 million leading to a net profit of EUR 18.3 million
- Gross margin rises to 36.5%
- EBIT increases by 32.0% to EUR 24.0 million
- Positive Outlook
Munich, 19 April 2011. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion group, has continued to grow profitably in
financial year 2011.
The revenues of KINGHERO Group amounted to EUR 101.5 million and thus
increased by 39.6% from EUR 72.8 million in the previous year. Despite
higher material costs during the past financial year, gross margin grew by
5.2 percentage points to 36.5%. Earnings from operations (EBIT) recorded a
plus of 32.0% and reached EUR 24.0 million. This represents an EBIT margin
of 23.7%, which is slightly lower than in 2010 (25.0%). The reasons for the
lower EBIT margin were higher marketing and distribution costs for the
flagship stores opened in 2011, as well as higher administrative expenses,
among others due to the capital increase carried out in May 2011. Net
profit was up 27% to EUR 18.3 compared to the previous year's figure. This
led to a net profit margin of 18.0%.
KINGHERO continues to have a very sound balance sheet structure. On 31
December 2011 equity amounted to EUR 96.8 million; in relation to total
assets an equity ratio of 85.6%. The cash flow from operations was EUR 12.9
million (2010: EUR 4.7 million). Overall KINGHERO disposed at the end of
the year of liquid assets of EUR 52.0 million (2010: EUR 32.0 million).
Flagship stores support growth
Up to the end of 2011, the company has strengthened its sales network by
opening 58 flagship stores. Although many of the flagship stores were
opened in the course of the year, they already contributed 6.3% to 2011
Group revenues. Next to the growing brand awareness, the flagship stores
helped increase the average selling price by 41.6% to EUR 14.4.
Increasing production capacity
In addition, KINGHERO purchased six factory buildings in Xiamen, which
cover an area of overall 70.000 sqm. The opening of the new facility
enables the company to increase its production capacity by 20%. Through
this investment the company further increases its manufacturing
flexibility, which leads to a significantly lower time-to-market of new
products.
New collection
KINGHERO also was successful in the development of new collections. The new
upscale 'AUVADIS' women's wear collection, which is distributed since the
beginning of this year in the own flagship stores, KINGHERO addresses the
target group of high-earning and successful Chinese women.
'We're very happy, that our company has achieved very positive results in
the financial year 2011. With the expansion of our flagship stores and the
cooperation with new business partners, we have strengthened our
distribution network as planned. We're confident, that we will also reach
our targets in 2012 and that KINGHERO will continue to grow', said Zhang
Yu, CEO and founder of KINGHERO.
Positive Outlook
Also in 2012, KINGHERO will continue to systematically implement its growth
strategy that is associated with strengthening the brand, increasing
production capacity and integrating new technologies. With the expansion of
its network of flagship stores, the introduction of the new women's wear
collection 'AUVADIS'and the extended production capacities, KINGHERO has
built a firm foundation for further growth. Due to these measures the
company not only expects to increase its sales, but also to improve the
brand awareness in the closely monitored flagship stores. By the end of
2012, KINGHERO expects to have 100 total flagship stores.
For the current financial year KINGHERO expects overall sales of approx.
EUR 125 million and solid margins at previous year's level. In case this
positive business development continues, the company intends to pay a
dividend for the financial year 2012 in the range of 10% to 15% of
consolidated net profit.
The full Annual Report 2011 of KINGHERO AG will be available on 27 April
2012 at the website www.kinghero.de.
About KINGHERO AG
KINGHERO AG is the German Holding Company of the KINGHERO Group of
companies, mainly active in the Peoples Republic of China (PRC). The Group
is a strongly growing apparel manufacturer and designer, featuring a
leading Chinese fashion brand for the strongly growing urban middle class
in China. The key to the Company's success is a high fashion degree with a
European 'touch and feel' as well as an upscale quality. The high speed of
the design and marketing of new collections ensures a fit to the changing
demands of the growing urban middle class in China. Being in this business
for more than 25 years, the group and its more than 1,000 employees produce
attire for all seasons under the KINGHERO brand. The product portfolio
includes suits, jackets, shirts, pants, sweaters for men and women and is
divided into a business casual range and a general casual range.
For further information please contact:
Kirchhoff Consult AG
Dr. Kay Baden
Phone: +49 (0)40 60 91 86 39
baden(at)kirchhoff.de
KINGHERO AG
Xiaoping Zhao-Moll
Gustav-Heinemann-Ring 44
81739 Munich
Germany
Phone: +49 (0)89 6734 6884
xiaoping.zhao-moll(at)kinghero.de
Disclaimer
This publication is not an offer of any securities for sale or a
solicitation of an offer to purchase any securities. The shares have been
sold.
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of
KINGHERO AG (the 'Shares') have not been registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
End of Corporate News
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19.04.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: KINGHERO AG
Gustav-Heinemann-Ring 4481739 München
Germany
Phone: 089 - 6734 6884
Fax: 089 - 6734 6887
E-mail: contact(at)kinghero.de
Internet: www.kinghero.de
ISIN: DE000A0XFMW8
WKN: A0XFMW
Listed: Freiverkehr in Düsseldorf, Hamburg, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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