EEKA Fashion Holdings Limited (3709.HK, “EEKA”) announced unaudited consolidated interim results for the six months ending on 30 June 2021.
In the first half of 2021, the Group’s revenue increased 53.7% year-on-year to RMB3.08 billion. Gross profit was RMB2.26 billion, representing an increase of 53.3%. The gross profit rate was 73.5%. Net profit increased by 134.2% to RMB280 million (net profit was RMB330 million excluding share award scheme fees).
Operational Summary
During the period, the Group recorded strong revenue growth by improving the operations of its offline retail channels and online e-commerce platforms. In terms of offline sales, the Group leveraged its retail channels, and achieved sales of RMB2.44 billion from its 1,490 retail stores in the first half of 2021. As for online sales, the Group has enhanced the operation of multi-e-commerce platforms, with Tmall, VIP.com and EEKA Fashion Mall as the key sales drivers. The revenue of e-commerce platforms increased by 41.7% to RMB386 million during the period, and the proportion of the Group’s total revenue is increasing steadily.
Focusing on the multi-brand strategy, the Group continues to build its capabilities to operate the multi-brand platform, and strengthen the positioning of the premium brand through brand ambassadors. In the first half of 2021, the Group’s eight major brands have shown rapid growth momentum: Koradior and NAERSI achieved revenue of over RMB1.8 billion, highlighting their strong market influence. NEXY.CO achieved sales of RMB388 million, approaching the Group’s third retail brand target of over RMB1 billion. FUUNNY FEELIN showed robust growth potential with sales exceeding RMB50 million, and recorded a growth rate of over 500%.
During the period, the Group enhanced its operational capabilities by driving supply chain integration and logistics warehouse concentration. The Group also actively promoted sustainable development, and joined “The Smart Coalition for Sustainability” with its eight major brands, to support the “Kind to Earth, Fashion for Future” sustainability initiative.
Outlook
Mr. Jin Ming, Founder and CEO of EEKA Fashion, said “In the first half of 2021, global epidemic prevention and control has entered a normal phase, and China’s economy is steadily recovering and showing strong resilience. As a result, the domestic high-end consumer goods market offers significant growth potential, and the domestic middle and high-end women’s apparel market holds great growth opportunities. In line with EEKA’s multi-brand strategy, we are committed to enhancing our core operational capabilities through innovative research and design, supply chain integration, digitalization, logistics warehouse concentration and channel optimization, to achieve exceptional market growth.”
In the second half of 2021, the Group will continue to enhance the brand’s market influence and product innovation capabilities, accelerate the transformation of multi-channel operation and increase the sales growth of e-commerce platforms, deepen the combination of product R&D and supply chain, and build a digital system of the entire business chain. With the vision of “Just for her unique glamour”, the Group will continue to focus on the multi-brand strategy, and create value for consumers in pursuit of a better life. The Group will commit to achieving the three-year cross-billion sales target, consolidating its leading position of middle and high-end women’s apparel market in China.
About EEKA Fashion
EEKA Fashion Holding Limited (Stock Code: 3709.HK) is a well-known fashion apparel group with a unique brand culture concept, advanced research and development design center, sound marketing service system, efficient logistics distribution and network management system. The Company has been deeply involved in China’s high-end women’s apparel industry since its establishment and was listed on the Hong Kong Main Board in 2014. The Group currently has eight self-owned brands: Koradior, La Koradior, Koradior elsewhere, NAERSI, NAERSILING, NEXY.CO, CADIDL and FUUNNY FEELLN. Over the years, EEKA Fashion Group has been strongly committed to brand internationalization. Since 2015 onwards, many of its brands have been invited to Milan Fashion Week and New York Fashion Week to show the charm of Chinese brands. The Group has always insisted that brand is the root and creativity is the soul, based on customer lifestyle research and brand culture shaping, in view of customer needs and the mission of “Just for her unique glamour”, focusing on product innovation and brand communication, and continuing to lead customers’ dress and life culture.
This press release is issued by ICA Investor Relations (Asia) Limited on behalf of EEKA Fashion Holdings Limited. For any enquiries, please contact:
ICA Investor Relations (Asia) Limited
Tel: +86 (21) 8028-6033
E-mail: eeka@icaasia.com
Topic: Press release summary