Fashion Trend Brand I.T Deficit Exceeded HK $700 Million, Share Price Fell 20%

According to reports, in the 2019/20 fiscal year, I.T turned into a deficit, losing over HK $700 million and closing 28 stores. At the same time, share prices went down all the way, falling from HK $5.82 to HK $1.17 in two years.

In recent years, clothing and other retail industries have been in a bad situation. This year's epidemic is a blow to the industry. Some famous brands also suffer from a decline in performance. This includes the I.T group, known as the "Chao" brand, the "originator" of China's tide brand.

In early June, I.T released its 2019 annual financial report, which showed that the company's revenue was HK $7 billion 719 million, down 12.6% from the same period last year. Gross profit was HK $4 billion 734 million, a year-on-year decrease of 16.1%, and net profit for the first time was HK $746 million a year.

Recently, due to the news of shareholder Templeton Asset Management Ltd reduction, I.T shares fell sharply in the intraday market, down 10.24%, at HK $1.14. According to the news, the shareholding ratio of Templeton Asset Management Ltd dropped from 5.01% to 4.94%.

According to the 2019/20 fiscal year, I.T lost 236 million Hong Kong dollars and HK $672 million respectively in the mainland market and Hong Kong and Macao markets, and Japan and the US market were still in a profitable State.

However, from the accounting point of view, the mainland market and Hong Kong and Macao markets accounted for 48.6% and 33.9% of total I.T revenues respectively, while inland revenues were relatively large, and the mainland, Hong Kong and Macao markets were over 80%. This also means that the operation of the mainland and Hong Kong and Macao markets directly determines the performance of I.T.

According to public information, I.T was founded by Shen Jiawei and his sister Shen Xiuhui in Green Elizabeth House, Tongluowan Elizabeth House, Hongkong. It was founded in 1988. It is one of Hongkong's large-scale fashion brand retail stores. It is a trend of fashion chasing and many stars to come to "holy land".

At the beginning of its establishment, Green Peace was only a small shop. It was famous for its avant-garde and fashion. It is known as the "wave card originator". It is also one of the largest fashion groups in Hong Kong and Macao. It is also the most fashionable group in Asia.

Shen Jiawei, a self-made I.T president, married Hongkong actress Chingmy Yau in 1999. Chingmy Yau's accession further enhanced the influence of I.T. Chingmy Yau also holds I.T stake. In 2011, I.T shares rose to HK $7.14.

But in recent years, consumers' acquisition of fashion information is no longer blocked. By means of micro-blog, jockey, Xiaohong book and other social media, consumers can get the latest trend information synchronously and purchase channels are more diversified.

Coupled with the rise of the tide brand, it also has a certain impact on I.T. From the 2019/20 financial year's performance, the income of international brands and licensed brands of I.T agents declined by 11.2% and 60% respectively.

I.T group said in its earnings report that the business environment of the group was extremely challenging and its operations in many operations were hit hard. Last year, 28 shops were closed in Hong Kong and Macao. After the outbreak of the new crown pneumonia this year, the company's physical store business was also hit hard.