After the closing on August 18th, China Menswear Group, Baoxiniao Garment (SZ.002154), released its 2023 H1 report. Benefiting from the steady implementation of various brand business plans in the first half of the year, the company achieved a revenue of 2.47 billion yuan, a 23.8% increase compared to the same period last year. Net profit attributable to shareholders reached 408 million yuan, a year-on-year growth of 53.9%, marking a recovery into positive growth. The financial report indicated that over the past three years, the compound annual growth rate of revenue was 10%, while the compound annual growth rate of net profit was 30%.
The establishment of Baoxiniao dates back to 1996. Its main business involves the research, production, and sales of branded clothing. The company has established three major production bases in Yongjia, Wenzhou, Songjiang, Shanghai, and Hefei, Anhui. The product range covers a wide variety of clothing categories including suits, trousers, shirts, jackets, wool sweaters, polo shirts, down jackets, quick-drying clothes, casual pants, leather shoes, and leather goods.
Baoxiniao Garment maintains a multi-brand development approach, with the following brands under its umbrella:
- Own Brands: Including Sparrow, Italian shirt brand Camicissima, professional group purchasing brand Bono, high-end customized brand Solosali, middle-to-high-end British golf-style menswear Henry Grant, and Italian luxury menswear brand Tombolini.
- Cooperative Brands: Including high-end school uniform group purchasing brand elite, cooperated with elite Clothing Co., Ltd.
- Licensed Brands: Including HAZZYS, licensed by LF CORP. (formerly LG Fashion Corporation); Lafuma, licensed by Lafuma Trading (Beijing) Co., Ltd.
In terms of individual brands, during the reporting period, the Baoxiniao (including the Henry Grant brand) achieved a revenue of 803 million yuan, a year-on-year increase of 14.18%; Hazzys achieved a revenue of 858 million yuan, a year-on-year increase of 29.62%, surpassing the main brand; Bono achieved a revenue of 519 million yuan, a year-on-year increase of 23.3%; Lafuma achieved a revenue of 115 million yuan, a year-on-year increase of 55.64%; the combined revenue of Camicissima and Tombolini was 93 million yuan, a year-on-year increase of 31.85%.
In June 2022, the company and its subsidiary, Shanghai Camicissima Apparel Co., Ltd., completed the acquisition of 100% equity of Camicissima (Shanghai) Trading Co., Ltd., the ownership rights of the CAMICISSIMA related trademarks, and the trademark usage rights and registration rights of CAMICISSIMA, 凯米切 and 恺米切 trademarks in unregistered categories in the Greater China region, for an investment amount of 93 million yuan. The acquirer’s main business is the operation of the Camicissima brand in the Greater China region.
In this report, we see the latest positioning of the group for Camicissima – an Italian professional shirt brand with excellent value for money. The target customer group is middle-class and business professionals aged 30-45 in tier 1-3 cities, with product prices ranging from 1199 to 1599 yuan per piece.
The Camicissima brand was founded by Giovanni, the grandfather of Fabio Candido, the president of the Italian group Fenicia S.p.A, in 1931. It started as a designer, manufacturer, and seller of shirts, gradually expanding into a supplier of men’s clothing including shirts, jackets, trousers, footwear, and accessories. With a history of over 90 years, the brand is renowned as the “Father of Shirts” in Italy. In 2014, to achieve ambitious expansion plans, the brand partnered with Sparrow in China, signing a 25-year licensing agreement.
As of the closing on August 21st, the group’s stock price rose by 3% to 6.19 yuan per share, with a total market value of about 9 billion yuan.
｜Source: Sparrow Financial Report
｜Image Credit: Brand Official Website
｜Editor: LeZhi
