Giordano performance trapped warm weather

Profit attributable to shareholders of Giordano (00709) reached RMB 426 million in 2015, which represented a year-on-year increase of 4.4%. Turning to the poor performance of 38.5% in 2014 was due to:

(I) Significant improvement in the operation of the Chinese mainland market: The turnover of 1.451 billion yuan decreased by 8% year-on-year, only 0.5% less than in the previous year. However, the operating profit was only 90 million yuan but it increased sharply by 52.5%. In 2014, it made a profit of 47.3% to a mere RMB 59 million. The rare effect was that the sales of cold winter goods were adversely affected by the overheated weather in the fourth quarter, and same-store sales were reduced by 2%. In the second half of the year, they remained at the same level as the previous year. In the first half, it increased by 12%.

Even in the (2) Hong Kong market, the operating conditions were also stable: sales of 971 million yuan decreased by 1% year-on-year, gross profit of 646 million yuan was 12 million, and gross profit margin decreased by 6 percentage points from 67.3% to 66.5%. This was due to the "change in the nature of visitors from the Mainland" analyzed by Giordano's management, and the Group's sales promotion through the reduction in prices rose by 10%.

Those who are worth keeping an eye on, for (c) cost control and effectiveness: production-oriented (1) sales cost of 2.284 billion yuan, which is a decrease of 2% year-on-year, and a reduction of 1 percentage point from the 3% reduction of the total business volume of 5.381 billion yuan, gross profit 30.97 Billion yuan decreased by 3.6% year-on-year but by 5.9 percentage points less than the previous year, while gross margin decreased by 0.4 percentage points to 57.6%; (2) Sales expenses decreased by 5% year-on-year to 252 million yuan, representing an operating profit of 556 million yuan. Yuan increase 2.5% due to.