As of the end of June, the revenue of Jinjiang Swimwear Co., Ltd.-Hosa International increased by 22.1% year-on-year to 370 million yuan***, and net profit reached 147.1 million yuan, an increase of 17.3%.
With the increase in business performance, the gross profit during the Hosa period increased by 17.2% to 230 million yuan, but the gross profit margin decreased from 63.9% in the same period last year to 61.4%. In this regard, Hosa International Chief Financial Officer and company secretary Li Haowen explained that the drop in gross profit margin was mainly due to the development of second- and third-tier cities with lower gross profit margin during the period, which caused the overall gross profit margin to be dragged down. "However, the current gross margin is still within the normal range, and it is expected that the gross profit margin can still be maintained at 61% in the second half of the year," said Li Haowen.
Inventory pressure in the shoe and clothing industry also affects the swimwear industry. In the first half of the year, Hosa’s inventory turnover days increased by 30 days year-on-year. Le Haowen explained that this is mainly due to the fact that this year’s new product launch time for the fall and winter will be ahead of schedule. He also predicted that the basic level for 2012 will remain basically the same as for 2011. However, the average receivables turnover days will be extended by 11 days. This is mainly due to the company’s policy support for new franchisees in the early stage of terminal expansion. The report is optimistic about the market situation in the second half of the year and believes that orders for sports underwear will increase in the second and third tier cities this winter, which is expected to drive double-digit growth in overall orders.
It is understood that in the first half of this year, the number of Hosa's retail terminals increased from 976 in the same period last year to 1,302, and the target for the future is to add 100 to 200 each year.
With the increase in business performance, the gross profit during the Hosa period increased by 17.2% to 230 million yuan, but the gross profit margin decreased from 63.9% in the same period last year to 61.4%. In this regard, Hosa International Chief Financial Officer and company secretary Li Haowen explained that the drop in gross profit margin was mainly due to the development of second- and third-tier cities with lower gross profit margin during the period, which caused the overall gross profit margin to be dragged down. "However, the current gross margin is still within the normal range, and it is expected that the gross profit margin can still be maintained at 61% in the second half of the year," said Li Haowen.
Inventory pressure in the shoe and clothing industry also affects the swimwear industry. In the first half of the year, Hosa’s inventory turnover days increased by 30 days year-on-year. Le Haowen explained that this is mainly due to the fact that this year’s new product launch time for the fall and winter will be ahead of schedule. He also predicted that the basic level for 2012 will remain basically the same as for 2011. However, the average receivables turnover days will be extended by 11 days. This is mainly due to the company’s policy support for new franchisees in the early stage of terminal expansion. The report is optimistic about the market situation in the second half of the year and believes that orders for sports underwear will increase in the second and third tier cities this winter, which is expected to drive double-digit growth in overall orders.
It is understood that in the first half of this year, the number of Hosa's retail terminals increased from 976 in the same period last year to 1,302, and the target for the future is to add 100 to 200 each year.
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