Daphne International Holdings Limited today released the 2009 annual results report on the Hong Kong Stock Exchange, the company revenue of 58.32 billion Hong Kong dollars in 2009, an increase of 10%; net profit fell 20% to 394 million Hong Kong dollar; basic earnings per share fell 20% To 24.05 HK cents. The decrease in net profit was mainly due to the fair value loss of HK $ 203.5 million warrants. Data show that Daphne sales cost of 2.625 billion Hong Kong dollars in 2009, the annual gross margin of 55%, compared with 52.7% in 2008 increased by 2.3 percentage points. "Daphne" as the main source of profit report shows that "Daphne" is still the main source of profit for the group. During the period, Daphne added 514 additional sales outlets throughout the country. As of December 31, 2009, Daphne operated a total of 1,904 shops, 716 counters and 743 franchised retail outlets. Closing all Nike branded point-of-sale reports also revealed Daphne's decision to step out of the sports apparel market by December 31, 2009, with all of the Nike branded points of sale shut down and the number of adidas sold to 41. Due to the still uncertain market in 2009, Daphne's exclusive mid-to-high end brand "Arezzo" in mainland China and the international brand "Sofft" and its affiliated brand "Born" failed to meet expectations. Daphne said it is reviewing and restructuring its business strategy for mid-to-high-end footwear. As of the end of 2009, Daphne operates a total of 4 "Arezzo" and 4 "Sofft" points of sale. 2010 plans to add 500 "Daphne" point of sale report shows that Daphne Group plans to 2010 a total of 500 additional "Daphne" points of sale (including 250 outlets / counters and 250 franchise points), and 250 "shoes Cabinet "point of sale. In addition, Daphne acquired 60% equity interest in Full Pearl International Limited (Full Pearl) in January 2010. Full Pearl is a franchise of high-end luxury footwear retailers in China's first and second tier cities, as well as Hong Kong and Taiwan. Currently, Full Pearl has about 200 outlets selling its own brands - "Love" and "Charm," as well as Other agency brands, including the Canadian famous brand "ALDO" and the American fashion brand "Jessica Simpson." Daphne Group hopes that with this acquisition can enter the domestic high-end market sales network. The report also revealed that Daphne Group has appointed Ms. Ma Xuezheng, the managing director of TPG, as a non-executive director of the company to strengthen its supply chain system and enhance its operating efficiency in the short to medium term based on TPG's professional advice.
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