Urban Beauty Profits Soared 27% In 2015

According to recent news, in the past 2015, China's underwear brand city beauty profits increased by 27%, and its total revenue will be close to 5 billion, becoming the best underwear brand in the future.

Once again proved to be one of the best two industries in the current low fashion retailing environment. The Cosmo Lady (China) Holdings Company Ltd (2298.HK), an urban beauty operation entity endorsed by entertainment star Lin Chiling and Huang Xiaoming, released its annual report. In 2015, the company's revenue and profits rose by 23.6% and 27% yuan to 4 billion 953 million 400 thousand yuan (hereinafter referred to as "Yuan") and 540 million yuan respectively.

The sale of the same store in 2015 also recorded an impressive increase in the median digits. The company intends to send 11 Hong Kong cents at the end of the year, an annual increase of 10%.

The urban beauty who has been playing the mass market in the early 2015 also bought Ordifen with 92 million, and tried to build a multi brand and multi positioning strategy through the same name brand and Ordifen's Ruby and Yi Xia to enter the middle and high-end market and department stores and shopping malls channels.

It is said that in the 2015 fiscal year ending December 31, 2015, Ordifen Group operates 551 retail outlets (including 189 franchised stores and 362 self operated stores), which are mainly located in shopping malls and department stores in major cities in China.

For the newly acquired Ordifen, Zheng Yaonan, chief executive of the group, said it will focus on development in the next two years and focus on a second tier city.

By the end of 2015, the distribution network of urban beauty group consisted of 8058 retail outlets, 6937 of which were franchised stores and 1121 were self operated stores (excluding the acquisition of brand distribution network). During the period, the group added 1032 retail outlets (excluding the acquisition of brand distribution network), 888 of which were franchised stores and 144 self operated stores.

At the noon performance briefing, Zheng Yaonan, CEO of urban beauty, said that the group plans to add more than 1000 sales outlets this year, mainly expanding the three or four line city sales network.

The strategy of opening stores is mainly to increase the permeability in southwest and North China, and to optimize branches in East China and Southern China.

Zheng Yaonan said there was no pressure on the new thousand store scheme, because rents continued to decline.

During the period, the revenue from sales to franchisees accounted for 63.7% yuan to 3 billion 155 million 900 thousand yuan, up 17.3% year on year, and retail sales rose 30.5% to 1 billion 623 million yuan annually.

In 2015, the urban beauty group business income recorded 174 million 600 thousand yuan, an increase of 136.6% over the same period last year, and the income of the channel also increased from 1.9% in 2014 to 3.5%.

According to category, bra income is still the main source of urban beauty income. In 2015, it accounted for 45.8% of income, while underwear, pajamas and household clothes and thermal clothing accounted for 16.1%, 14.4% and 12.1% respectively.

According to the series, the urban beauty series accounted for 40.7% of the total income, the proportion of urban silk language was 27.5%, the urban colorful distribution ratio was 12.7%, the urban front accounted for 12.1%, and the Ordifen accounted for 3.6%.

In 2015, the gross profit margin of urban beauty group surged by 360 basis points to 42.7%. The group said that the increase was mainly stimulated by sales and product channels, including Karskhan, integrated supply chain and scale economy. The group's gross profit increased by 34.9% to 2 billion 114 million 800 thousand yuan during the period.

It rose 19.8% to 688 million 800 thousand yuan over the same period, and 40 base points fell to 13.9% during the period of operating profit margin.

Tuesday, 2298.HK shares closed at HK $6.39, or 0.63%.