CABBEEN's Revenue In The First Half Of The Year Exceeded 500 Million Profits, Up 0.8% To 110 Million Over The Same Period Last Year.

In the afternoon of August 5th, CABBEEN apparel Co., Ltd. (hereinafter referred to as CABBEEN) released its medium-term results in 2019.

In the 6 months ending June 30th, CABBEEN realized a profit of about 560 million yuan, an increase of 0.3% over the same period last year. The operating profit was 160 million yuan, a decrease of 5.5% compared with the same period last year, and the operating profit rate was 28.7%, due to the increase in promotion and other operating expenses, while the impact was partially offset by an increase of 22 billion 200 million yuan in government subsidy income. The profit for the period was 110 million yuan, up 0.8% over the same period last year, and remained stable compared with the same period last year.

According to the introduction, CABBEEN's brand has CABBEEN leisure, CABBEEN City, Cabbeen Love and two o'clock in the morning. The group's income is to sell its products through franchised stores and online stores. Among them, CABBEEN leisure is still the main brand of the group and the main source of revenue. In the first half of this year, the revenue reached about 460 million yuan, accounting for 81.5% of the group's total revenue.

As of the end of the reporting period, CABBEEN had 5 wholesale distributors, 18 distributors and 127 two level distributors, operating 912 retail outlets in the mainland of China, and operating WeChat mall and other e-commerce platform stores including Tmall, Jingdong, vip.com and other online distributors.

In the first half, CABBEEN's total retail revenue decreased by 8.3% compared with the same period in 2018. The decrease was mainly due to the weak consumer confidence and the exceptionally warm weather in the first quarter of 2019. During the period, the retail revenue and the same store sales volume of the group's retail stores decreased by 12.5% and 13% respectively compared with the same period in 2018. The retail revenue generated by online stores increased by 14% to 243 million 700 thousand yuan over the same period.

According to the performance data, the proportion of CABBEEN's online channel revenue in the group's total revenue has been increasing, which has increased from 31.4% in the same period last year to 35.9%, and the proportion of offline store income has dropped to 64.1% from 68.6% in the same period last year.

As of June 30, 2019, CABBEEN had WeChat fans and 2 million 100 thousand members.

As of December 31, 2018 and June 30, 2019, the total number of CABBEEN retail outlets remained stable, most of which were located in two or three tier cities. According to the offline channel, CABBEEN 39.6% stores are located in department stores, about 38.4% shops are located in shopping malls, and about 22% shops are located in street shops.

CABBEEN expects the consumption level will continue to decline in the second half of 2019, but it is still firmly convinced that e-commerce and multi brand strategy will continue to be the mainstay of its business. Therefore, it will focus on expanding its business and full channel capabilities and continue to seek opportunities to expand its brand portfolio and customer base.