KINGHERO AG
KINGHERO AG: Highly profitable in a successful first half-year 2011
KINGHERO AG / Key word(s): Half Year Results 29.08.2011 / 08:07 --------------------------------------------------------------------- Munich, 29 August 2011. KINGHERO AG, the German holding company of a fast-growing Chinese fashion company, today published its financial results for the first six months of 2011. The company continued to grow and strengthen its position in the Chinese fashion market as one of the leading manufacturers in the casual ware industry. KINGHERO increased its revenues by 26.8% from EUR 33.0 million in the first half of 2010 to EUR 41.9 million in the first half of 2011. Gross profit jumped up by 51.6% to EUR 16.4 million leading to a gross profit margin of 39.6% (H1 2010: 32.8%). As a result, EBIT rose by 43.3% to EUR 12.6 million (H1 2010: EUR 8.8 million). This represents an EBIT margin of 30.1%. One of the key elements in KINGHERO's strategy in order to enhance the brand awareness and to increase profitability is to increase the number of flagship stores. In the first half of 2011, the company opened 12 new flagship stores. Therewith the company operates a total of 19 flagship stores at the end of the first half of 2011 that already generated approximately 5% of total revenues. These flagship stores were highly profitable with a gross margin of 64% in the first half of 2011. In February, KINGHERO signed an agreement with PCD Stores, a profitable operator of currently over 30 galleries and malls for premium luxury stores in the PRC. Currently, KINGHERO is operating one flagship store in PCD Xiamen. Despite an increase in raw material prices and rise of labour costs, the purchasing power of Chinese citizens is increasing, and the Chinese economy is increasingly driven by domestic consumption. The demand for high-end brand products is also rising. KINGHERO is more and more moving into the higher price segment of the market. The company managed to increase the average unit prices by 43% in H1 2011. As part of this pricing strategy, the new women's premium collection 'Auvadis' was presented in Xiamen in July. The collection will underline KINGHERO's commitment to high quality and fashion, should also lead to rising average selling prices and an increase of the awareness as a premium brand. In May, the company successfully raised EUR 15 million in a capital increase. The proceeds are to be invested mainly in new flagship stores in 2011 and 2012. Despite the macro-economic challenges, the management board confirms the positive outlook for the full year 2011 with group revenues of EUR 105 million and margins at least at the previous year's level. This outlook does not include the sales from additional 30 flagship stores, which KINGHERO intends to open in 2011 with the proceeds of the capital increase in May 2011. The definite opening dates of these additional 30 KINGHERO flagship stores are not yet determined. Therefore, KINGHERO will specify the expected additional revenues for 2011 with the presentation of the 9 months results. Currently, KINGHERO operates 28 flagship stores. By the end of 2011 the company expects to operate 65 flagship stores in total. The half-year report is available on the website www.kinghero.de for download. 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 and 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 Jens Hecht Phone: +49 (0) 40 60 91 86 0 jens.hecht@kirchhoff.de KINGHERO AG Gustav-Heinemann-Ring 44 81739 Munich Germany Phone: +49 (0) 89 67 34 68 84 xiaoping.zhao-moll@kinghero.de Disclaimer 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 --------------------------------------------------------------------- 29.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KINGHERO AG Gustav-Heinemann-Ring 44 81739 München Germany Phone: 089 - 6734 6884 Fax: 089 - 6734 6887 E-mail: contact@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 --------------------------------------------------------------------- 137219 29.08.2011
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