KINGHERO AG
KINGHERO AG: Highly profitable in the first nine months of 2011
KINGHERO AG / Key word(s): Quarter Results 21.11.2011 / 08:01 --------------------------------------------------------------------- - Revenues grow by 23.3% to EUR 63.1 million - Gross profit margin rises to 38.7% - EBIT increases by 25.4% to EUR 16.3 million - 13 new flagship stores opened - New premium collection 'Auvadis' with SWAROVSKI ELEMENTS Munich, 21 November 2011. KINGHERO AG, the German holding company of a fast-growing Chinese fashion company, looks back on a very successful business and financial development in the first nine months 2011. The company managed to further improve its very good results of the previous year and strengthened its position in the Chinese fashion market as one of the leading manufacturers in the casual ware industry. KINGHERO increased its revenues by 23.3% from EUR 51.2 million in the first nine months of 2010 to EUR 63.1 million in the first nine months of 2011. Gross profit jumped up by 46.8% to EUR 24.4 million leading to a gross profit margin of 38.7%. As a result, EBIT rose by 25.4% to EUR 16.3 million compared to EUR 13.0 million in the corresponding period of the previous year. This represents an EBIT margin of 25.9%. The very good results are mainly due to the strong brand visibility and brand image. One of the key elements in KINGHERO's strategy in order to enhance the brand awareness and to raise profitability is to increase the number of flagship stores. In Q3 2011, the company opened 13 new flagship stores. Therewith the company operates a total of 32 flagship stores at the end of Q3 2011 that already generate approximately 5.8% of total revenues. These flagship stores were highly profitable with a gross margin of 64.5% in the first nine months 2011. Despite an increase in raw material prices and rise of labour costs, the purchasing power of Chinese citizens is growing, and the Chinese economy is increasingly driven by domestic consumption. The demand for high-end brand products also intensifies and the branded apparel industry is expected to benefit and show a healthy development. KINGHERO is more and more moving into the higher price segment of the market and was able to raise average selling prices by 38%, which more than compensated the material cost increase. As part of this pricing strategy, the new women's premium collection 'Auvadis' will be launched with SWAROVSKI ELEMENTS. 'Auvadis with SWAROVSKI ELEMENTS 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,' states KINGHERO's CEO Zhang Yu. 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. KINGHERO expects to operate 65 flagship stores by the end of 2011. The Interim Statement 9 Months 2011 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 1,100 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 --------------------------------------------------------------------- 21.11.2011 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 --------------------------------------------------------------------- 147094 21.11.2011
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