China'S Net Profit Declined By 14.69% In 2019.

Recently, the Kappa parent company China has released its annual results for 2019 ending March 31, 2020. According to the announcement, China's business revenue rose 12.6% to 1 billion 841 million yuan in 2019, and the profit of shareholders should be reduced by 14.69% to 366 million yuan compared with the same period last year.

From the Chinese branch, the sales volume of the group's main business Kappa brand business during the reporting period was 1 billion 388 million yuan, up by 1 billion 117 million yuan over the previous period, which was 271 million yuan. The children's clothing business unit achieved sales of 88 million yuan during the reporting period, and sales fell by 29 million yuan over the past period.

During the reporting period, the sales volume of China's Kappa brand non self operated channel business was 601 million yuan, an increase of 219 million yuan compared with the sales volume of non self operated business in the past period of 382 million yuan, and the percentage of non proprietary business in China's Kappa business sales was 43.3% (past 34.2%).

As of March 31, 2020, the number of self operated stores operated by China's Kappa brand through self operated retail subsidiaries has reached 512. During the reporting period, sales of self operated channel business reached 787 million yuan, an increase of 52 million yuan compared with the sales of self operated channel business in the past period of 735 million yuan, and self operated business accounted for 56.7% of China's Kappa business sales (past 65.8%).

According to the Japanese branch, the sales volume of Japanese divisions in the reporting period was 301 million yuan, down by 33 million yuan compared with the sales volume of 334 million yuan in the past period. The decline in sales in Japan was mainly due to the increase in returns.

The trend of China pointed out that in December 2019, Kappa rebuilt its brand and upgraded its image to launch a new brand concept "K is for Kappa" to the market.

With the unique multicolor design and avant-garde spiritual core of the brand, the new concept aims at improving brand tone and making better voice for the new generation. Spokesperson Huang Zitao's distinct personal style has perfectly interpreted the new theme of Kappa, attracting more young people's attention.

According to the announcement, in March 31, 2020, the total number of Kappa brands of the group was 1372, including 243 children's shops, compared with 132 in March 31st last year (80 in Kappa brand shops, and 52 in children's shops in Kappa) in March 31, 2020. Next, the group will continue to shut down inefficient stores.