Winner Fashion Deep Tillage High-End Women's Clothing Rose 10.57% In The First Half Of The Year

Winner fashion Holdings Limited ("winner fashion" or "company", stock code: HK3709) pleased to announce the performance of the company and its Affiliated Companies ("group") for the six months ended June 30, 2019 ("period") in August 23rd.

During the period, group income increased by 10.57% to 1 billion 337 million 450 thousand yuan (RMB, same below) compared with the same period last year. Gross profit margin was 967 million 140 thousand yuan, an increase of 13.60% compared with the same period last year, and the gross gross profit margin increased from 72.31% in the first half of 2018 to 72.31%. Net profit was recorded at 146 million 610 thousand yuan, up 10.90% over the same period last year; net cash inflow from operating activities was 251 million 450 thousand yuan; the basic earnings per share were 0.31 yuan.

In the first half of 2019, consumption growth slowed down, and market confidence was affected by Sino US trade friction and macroeconomic uncertainty. The group continued to deepen the high-end women's clothing business. In order to keep pace with the continuous development of consumption upgrading, the group enriched the mid end product level, and launched the new brand FUUNNY FEELLN in January 2019, focusing on the future female lifestyle and building a cost-effective brand for consumers.

In March 25, 2019, it concluded a takeover agreement with Apex Noble Holdings Limited ("Apex Noble"), agreeing to acquire all issued shares and shareholder loans of Keen Reach at a cost of HK $2387775349. The acquisition was completed in July 2019, and the group's assets were successfully listed as a whole.

The winner's fashion is to insist on direct sales strategy, pay attention to expand retail outlets, and sell all over China. In June 30, 2019, the group had 885 retail outlets, 648 of which were direct outlets, and the remaining 237 stores were operated by distributors, with a direct proportion of 73.22%. After massive development, dealers actively sought cooperation, and the total revenue of dealers increased by 43.77% to 169 million 330 thousand yuan over the same period. In terms of electricity providers, the group continued to increase the launch of online product portfolios, and strengthened the integration with offline products, while providing special contributions for the selection of e-commerce products. During the period, the electricity business revenue reached 131 million 340 thousand yuan, an annual growth of 25.48%.

Looking forward to the second half of 2019, despite the changing global economic environment, as the core asset of China's fashion industry, the winner's fashion is still full of confidence in the future. The group will promote business development in all dimensions and dimensions, including establishing brand status with spokesmen of brand image; shaping brand depth through international fashion show; expanding brand breadth through multi-modal marketing; persisting in direct channel operation; developing multi industry status steadily, tapping potential store effect; strengthening VIP operation, digging deep member value; enhancing product development capability and strengthening cost-effective brand.