Ports Design Limited. (Stock code: 0589) 2014 Interim Results

Transcription

1 Ports Design Limited (Stock code: 0589) 2014 Interim Results This document may contain time-sensitive information which is only current as of the date of publication. In addition, this document may also contain forward looking statements which are subject to risks and uncertainties. No reliance may be placed on the information contained in this document or on its completeness, accuracy or fairness, nor is any responsibility accepted for any errors, misstatements, or omissions or any direct or consequential loss howsoever arising from any use of, or reliance on, this document or otherwise in connection with it. Please refer to the Company s latest issued annual or interim report for detailed financials.

2 Table of Content Business Review Financial Review Latest Updates 1

3 Business Review Group s Turnover RMB Mil 1,500 1,000 Group's Turnover Group's Gross Profit 1, % % Weaker luxury consumption environment leads to sales decline SSSSG for 1H14-3.0% H12 1H13 1H14 Total number of store is 327 as of June , while the Group is in the process of optimizing the retail store network 2

4 Business Review Segment Turnover RMB Mil 1,500 Retail Turnover 91.9% Retail as % of Total Turnover 90.7% 90.9% 100% RMB Mil 150 Other Turnover Other as % of Total Turnover 12% 1,250 1, % 9.3% 9.1% 8.1% % % -12% 9% 6% % 20% 50 3% 0 1H12 1H13 1H14 0% 0 1H12 1H13 1H14 0% Retail division Others division Retail division includes the retail distribution of Ports core brand and other licensed brands, which accounts for over 90% of total revenue. Gross profit margin for Retail division was 86.1% (1H13: 86.7%) Others division comprises of OEM, eyewear and wholesale business, which accounts for 9.1% of total revenue. Gross profit margin for Others division was 35.0% (1H13: 35.1%) 3

5 Business Review Operating Performance RMB Mil Group Gross Profit Group Gross Profit Margin RMB Mil Retail Gross Profit Retail Gross Profit Margin 1,500 1, % 81.6% 81.9% 81.9% 81.5% % 80% 60% 40% 20% 1,500 1, % 86.3% 86.3% 86.7% 86.1% % 80% 60% 40% 20% 0 1H10 1H11 1H12 1H13 1H14 0% 0 1H10 1H11 1H12 1H13 1H14 0% RMB Mil 1H14 1H13 Gross Profit Operating Profit Net Profit Operating Margin (%) 11.2% 19.0% Net Margin (%) 5.9% 13.5% 4

6 Business Review Operating Expenses RMB Mil Distribution Costs Administration Costs Other Operating Expenses 800 Distribution cost up by 1.8% as compared with the corresponding period in 2013 Other operating expenses down by 8.3% due to reduction in stock provision Administrative expenses up by 4.0% due to increase in salary & benefits on administrative staff Operating expenses as a % of total revenue increased from 63.0% to 70.6% % (9.3%) 8.3% 92 (9.5%) 53 (5.0%) 4.0% 55 (5.8%) 525 (48.8%) 1.8% 534 (55.3%) 0 1H13 1H14 * Percentage as of total turnover were shown in bracket 5

7 Business Review Distribution Costs RMB Mil +12.9% +24.9% -3.3% -2.3% -12.4% -26.5% Decrease in expense Increase in expense Note: *Others include Insurance, transportation, consultant services fee, design, product surplus taxation, office sundries and miscellaneous 1H13 Rental Charges Advertising &Promotion Salaries &Benefit Store&Mall Expenses Depreciation Others* 1H14 As % of Retail Turnover Rental Charges Advertising & Promotion Salaries & Benefit Store & Mall Expenses Depreciation Others 1H % 3.9% 11.9% 5.1% 5.6% 4.9% 1H % 2.8% 11.0% 4.7% 5.8% 5.9% 6

8 Business Review Rental Expenses Rental expenses increased by 12.9% due to the continuing upgrade of the locations of new stores RMB Mil Rental Expenses +12.9% H12 1H13 1H14 7

9 Business Review Inventory RMB Mil Inventory RMB Mil Inventory Provision % % H13 FY13 1H14 0 1H12 1H13 1H14 The Group closely monitored inventory level by improving operational efficiency and inventory management 8

10 Financial Review RMB Mil 1H14 1H13 Change Revenue 965 1, % Gross Profit % Operating Profit % Profit for the period % Profit Attributable to Equity Shareholders % Basic Earnings per Share (RMB cent) % EBIT % Gross Margin (%) 81.5% 81.9% -0.4pp Operating Margin (%) 11.2% 19.0% -7.8pp Net Margin (%) 5.9% 13.5% -7.6pp 9

11 Financial Review RMB Mil 1H14 FY13 Net cash from operating activities (1H13) Cash and cash equivalent 1,379 1,293 Total liabilities 992 1,006 Net assets value 2,075 2,023 Net assets per share (RMB) Current assets ratio (times) Gearing ratio (%) 34.9% 35.4% Return on equity (%) 2.8% 7.7%(1H13) 10

12 Financial Review RMB Mil -3.6% Net Finance Income 10.7 Finance income Positive change Negative change 1.47 Net Finance income for 1H13 Interest income Exchange loss % Bank charges +72.5% Interest Expenses -52.3% Net Finance income for 1H14 Finance loss Group s gearing ratio maintained at similar level as compared to FY13 80% 60% Gearing Ratio Net financing Income dropped by 86.3% mainly due to exchange loss incurred as compared with the exchange income for the same period in % 20% 43.5% 35.4% 34.9% 0% 1H13 FY13 1H14 11

13 Latest Updates Our New Flagship Store Canton Road, Hong Kong Total Area: ~ 7,070 sqft Expected Opening Date: End of 2014 Collection available: PORTS 1961 Men s & Women s 12

14 Latest Updates Our New Flagship Store Nanjing West Road, Shanghai Total Area: ~ 1,640 sqm Expected Opening Date: TBC Collection available : PORTS 1961 Men s & Women s 13

15 Latest Updates Continuing upgrade of Retail Outlets PCD Stores, Xiamen Orient Dept. Store, Nanjing Tianjin Galaxy Mall 14

16 Latest Updates PORTS Pop Up Store in Milan Via Tortona 37 Fashion District, Milan, Italy 9-23 May 2014 Covering an area of 350 square metres and inspired by the Ports 1961 flagship stores in New York and Paris, the Milan Pop up store is part of an entirely ecosustainable complex in the modern setting of Via Tortona, the main thoroughfare of the design district in the Lombardy capital. 15

17 Latest Updates PORTS1961 x Christopher Makos Global Exhibition 16

18 Latest Updates Appointment of Creative Director for Men s wear - Milan Vukmirovic Former Creative Director for Jil Sander and Trussardi respectively, and former Design Director for Gucci Chief Editor for L Officiel Hommes French Edition Co-Founder of Colette store, Paris Editor-in-Chief and Founder of FASHION FOR MEN bookzine 17

19 Latest Updates Expansion of collection: Ports Pink 18

20 Latest Updates Diversification of merchandize portfolio: Our Accessories 19

21 Latest Updates Our runway shows in Milan Fashion Week

22 Latest Updates Media Coverage 21

23 Latest Updates Media Coverage 22

24 Latest Updates Media Coverage 23

25 Latest Updates Overseas Celebrities in Ports 1961 Julia Louis-Dreyfus at the David Letterman Show Bryan Cranston at Godzilla Premiere, London Elizabeth Henstridge at CTV Upfront 2014 Party in Toronto 24

26 Latest Updates Overseas Celebrities in Ports 1961 Miss Universe, Gabriela Isler Miss USA, Erin Brady Elizabeth Henstridge 25

27 Latest Updates Overseas Celebrities in Ports 1961 Antonio Candreva Giuseppe Rossi 26

28 Latest Updates Chinese Celebrities in Ports 1961 Tony Leung Simon Yam Deng Chao Nicky Wu 27

29 Contact Us For further information, please contact: Ms. Clara Chan Investor Relations Manager