On November 27, Bosideng, a Chinese down apparel brand group (HK: 03998), released its interim results for the fiscal year 2023/24 ending September 30, 2023.
During the reporting period, Bosideng adhered to its strategic direction of “focusing on the main channel (down apparel) and main brand (Bosideng),” resulting in a 20.9% year-on-year increase in operating revenue to RMB 7.47 billion. The gross profit margin remained stable at 50%, comparable to last year, while operating profit rose 30.2% year-on-year to RMB 1.23 billion, and net profit attributable to the parent increased by 25.1% year-on-year to RMB 920 million. The Group’s revenue and net profit have achieved historical highs for six consecutive years.
As of the close on November 28, the group’s share price increased by 5.19% to HK$3.24 per share, with a current market value of about HK$35.3 billion.
Bosideng Group’s main businesses include branded down apparel, OEM management, women’s clothing, and diversified apparel segments. During the reporting period, all segments achieved positive growth, with the branded down apparel segment performing the best:
- Branded down apparel business: Revenue increased by 28.1% year-on-year to RMB 4.94 billion, remaining the largest source of income for the group, accounting for 66.1% (compared to 62.4% in the same period last year).
- OEM management business: Revenue grew by 7.8% year-on-year to RMB 2.04 billion, representing 27.3% of total revenue (30.7% in the same period last year).
- Ladieswear business: Revenue rose by 15.4% year-on-year to RMB 390 million, accounting for 5.3% of total revenue (5.5% in the same period last year).
- Diversified apparels business: Revenue increased by 9.8% year-on-year to RMB 100 million, representing 1.3% of total revenue (1.4% in the same period last year).
As of September 30, 2023, the group has nearly 400 seasonal stores in addition to its regular stores, such as flagship stores, high-end stores, mainstream stores, and mass-market stores.
*Seasonal stores, primarily located in provincial capitals and focusing on top trendy products of the season, are usually open for 1 week to 3 months and are mainly situated in core business districts and sports venues.
In the most important branded down apparel business, including the core high-end Bosideng and the more mass-market Snow Flying and Bengen:
- Bosideng: Revenue increased by 25.5% year-on-year to RMB 4.42 billion, accounting for 89.5% of the down apparel segment (91.3% in the same period last year).
- Snow Flying: Revenue surged by 52.2% year-on-year to RMB 270 million, increasing its share to 5.4% of the down apparel segment (4.5% in the same period last year).
- Bengen: Revenue plummeted by 65.3% year-on-year to RMB 10 million, decreasing its share to 0.2% of the down apparel segment (1.0% in the same period last year), mainly due to the brand’s strategy since the 2020/21 fiscal year to significantly reduce offline agency channels and transition to online channels.
In December 2021, Bosideng announced a joint venture with the German company Willy Bogner GmbH & Co. KGaA (BOGNER) and reached a strategic joint venture agreement to expand into the Chinese market. Bosideng also stated that to further develop overseas production capacity and strengthen integration of upstream resources, the group has established joint ventures with two factories in Vietnam and a raw material supplier in China.
In this financial report, Bosideng disclosed data related to the joint ventures and associated companies: during the reporting period, the group recorded a net loss of RMB 11.9 million through the joint venture company.
| Source: Official Financial Report
| Image Credit: Group Official Website
丨Reporter:Wang Jiaqi
| Editor: LeZhi
