EEKA Fashion Announces 2023 Interim Results, Net Profit Increased 71.57%
HONG KONG, Aug 28, 2023 – (ACN Newswire via SEAPRWire.com) – EEKA Fashion Holdings Limited (“EEKA Fashion” or the “Company”, together with its subsidiaries, the “Group”, stock code: 3709.HK) announces the unaudited results for the six months ended 30 June 2023 (the “Reporting Period”).
During the Reporting Period, the Group’s revenue reached RMB3,340.90 million, representing an increase of 15.36% with a net profit of RMB442.20 million, representing a sharp increase of 71.57% compared with the first half of 2022. Net profit margin sharply increased from 8.90% for the first half of 2022 to 13.24%. It is primarily attributable to the Company’s comprehensive upgrade strategy has begun to show positive operational results
Both Upstream and Downstream Drive the Outperformance of Revenue
The company adheres to the long-term strategy of “multi-brand, omni-channel, comprehensive platform, merging upstream and downstream”, and constantly iterates the core management system, optimizes the platform operation and management capabilities and consolidates the core competitive advantage to make impressive achievements regarding quantities of brands under the Company and the quality improvement of supply chains.
The revenue from the self-operated retail stores increased by 19.44% from RMB2,279.81 million for the first half of 2022 to RMB2,722.99 million for the Reporting Period. Total revenue from distributors decreased by 11.97% from RMB162.23million for the first half of 2022 to RMB142.81 million for the Reporting Period. Total revenue from e-commerce platforms increased by 4.58% from RMB443.40 million for the first half of 2022 to RMB463.72 million for the Reporting Period.
Brands was Recognized by Authorities and Customers
The revenue generated from the sales of products under the main brands Koradior and NAERSI showed an increase of 11.14% and 8.91% or RMB112.98 million and RMB57.66 million for the Reporting Period respectively. La Koradior, NAERSILING and NEXY.CO brands’ performance is outstanding, with the revenue generated from sales of products increased to RMB217.05 million, RMB252.22 million and RMB479.71 million, representing an increase of 30.04%, 22.76% and 24.71% as compared to the first half of 2022 respectively. The revenue generated from sales of products of ELSEWHERE, CADIDL and FUUNNY FEELLN increased to RMB273.12 million, RMB215.50 million and RMB72.00 million respectively, representing an increase of 16.62%, 17.67% and 18.09% respectively as compared to the first half of 2022.
On 5 January 2023, the 2022 (6th Edition) Boao Enterprise Forum and China Brand Boao Summit were grandly held in Sanya, Hainan. During the awards ceremony, Koradior, a brand under EEKA Fashion Group, was honored with the title of “2022 Fashion Exemplary Brand,” while La Koradior received the title of “2022 Top 10 Influential Brands.” These prestigious accolades were presented at the ceremony, recognizing the remarkable achievements and influence of both brands in the fashion industry during 2022.
Comprehensive ESG System Promotes Sustainable Development
In terms of the governance of the Company, the Company has established a three-pillar talent development framework: Leadership System, Excellent Product Power System, and Sales Power System to explore and establish a talent development model that aligns with the Company’s unique needs and requirements. In February 2023, the Group was awarded “2022 China’s Best Learning Enterprise” in the “2022 (10th Edition) China’s Best Learning Enterprise” selection organized by Xue Daojia Academy which emphasizes unique learning methodology to demonstrate effective practical exploration in learning, focusing on strategic innovation and transformation.
The Group actively assumed corporate social responsibility such as the collaboration of ELSEWHERE and “New Paradise” magazine launched an online art exhibition that brings together three marine artists to explore ocean conservation through art on World Oceans Day to raise awareness about the importance of protecting our oceans, highlighting the potential for sustainable fashion to contribute to ocean conservation efforts.
The Company is Expected to Achieve Continuous Progress
From the perspective of internal operation, in the second half of the year, we must continue to adhere to the comprehensive “quality improvement” strategy and drive the overall enhancement of quality effectiveness, store effectiveness, and personnel effectiveness. In terms of brand building, a wider integrated marketing system should be utilized to continuously enhance brand strength; acceleration of the standardization and streamlining of the excellent product system reform project should be expedited; the integration and construction of a high-quality supply chain should be strengthened; the combination of product research and development and supply chain should be deepened, and the release of product strength across all brands should be accelerated; emphasis should be placed on advancing the construction and operation of single-brand flagship stores. We will strengthen the quality of online commodity supply and improve the quality-price ratio; more platforms should be covered by the brand and product lines, with exploration of opportunities on platforms like Xiaohongshu (Little Red Book) in the second half of the year, and increase investment in digital stores; increase investment in the same products on Tmall and JD.com, and, expand the number of stores on these platforms.
The Board of EEKA Fashion Holdings Limited said: “After three years, the Company has transformed from being a ‘leading company in China’s mid-to-high end women’s clothing industry’ to a magnificent rise as a more powerful and confident ‘China’s affordable luxury brand management group.’ 2023 will be a new starting point for our even greater prospects as the Company believes that ‘if you do persist, there will be an echo’. In the second half of year 2023, the uncertainty in the economic environment has not completely disappeared, but along with the positive effects of proactive fiscal and monetary policies, the market will be gradually repaired, and the stock game is favorable to the leading enterprises, etc., the Company is more optimistic. We will maintain strategic determination, adhere to brand positioning and core principles, respect rules, customers, products, the market, and talents, and continue to cultivate a solid foundation for multi-brand operations, strengthen platform-based operations and systematic management capabilities, combined with the unwavering efforts of all employees, we can achieve shareholder wealth maximization.”
EEKA Fashion Holdings Limited (3709.HK):
EEKA Fashion Holdings Limited is a famous fashion apparel group with unique brand culture concepts, advanced R & D and design centres, sound marketing service system, efficient logistics distribution and network management system. Since its establishment, the Group has been deeply engaged in the high-end ladies-wear apparel industry in China and was listed on the Main Board of Hong Kong in 2014. At present, the Group has eight self-owned brands, namely Koradior, La Koradior, ELSEWHERE, NAERSI, NAERSILING, NEXY.CO, CADIDL and FUUNNY FEELLN, striving to occupy the high ground of fashion and become the leading affordable luxury brand management group in China.
For more information, please visit EEKA Fashion’s website: http://www.eekagroup.com/
This press release is issued by Financial PR (HK) Limited on behalf of EEKA Fashion Holdings Limited.
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