A Net Loss Of HK $3 Million In Garment Business. Baleno Parent Company Closes Its Plant In Mainland China.

On the evening of July 10th, the 2018 annual report released by Baleno's German wing wing Jia group showed that as of March 31, 2018, the total revenue of the company increased by 8.6% to HK $8 billion 531 million, and the profit should be reduced by 36.5% to HK $304 million.

Among them, the income of garment business associates decreased by 57.6% to HK $313 million, which should account for a net loss of HK $3 million, or 62.5%.

Meanwhile, due to rising wage costs, the company has closed its factories in the mainland of China.

Data show that since the beginning of fiscal year 2012, the operation income of de Yongjia has been declining.

The company's operating income in the 2012 fiscal year was HK $13 billion 766 million, and its operating income in the 2014 fiscal year was HK $9 billion 860 million.

In the 2017 fiscal year, the operating income of Germany Yongjia declined to HK $7 billion 858 million, down 15.89% compared with the same period last year, and gross profit fell 21.48% to HK $2 billion 491 million.

At present, Tokunaga Ka business is mainly divided into two parts: retail and textile.

Retail business mainly takes Baleno, S&K, Ebase and I.P.ZONE as the four major brands.

However, due to the overstock of inventory, Baleno closed 12 stores a month in 2011-2015 years. In 2016, Baleno Kingdom Limited in Shanghai was sold to Shanghai Industrial Co., Ltd. by virtue of the price of 250 million yuan RMB.

De Yongjia said that the reorganization is being carried out, and the sale can optimize resources.

In fact, de Yongjia is not only the parent company of Baleno, but also one of the foundries of UNIQLO, Nike, GAP and other brands.

Data show that in 2016, the United States customers include Nike and GAP, accounting for 60% of total revenue; Japanese customers including UNIQLO brands accounted for 24% of the total revenue; European customers such as Adidas and H&M accounted for 10% of the total revenue.

Among them, UNIQLO is the largest customer of Germany Yongjia, accounting for about 10% of revenue.

GAP, Nike, Polo and A&F account for 4%-5% of company income.

In the report, the management of Germany's Yongjia management said it was still difficult for the group to operate its environment in the year.

In the future, de Yongjia will continue to expand seamless garment production with sports brand as its main object and enhance its function.

Capacity to diversify products and control purchases and inventories to enhance competitiveness.