Cabbeen Announces 2016 Interim Results

HONG KONG, Aug. 1, 2016 /PRNewswire/ -- Cabbeen Fashion Limited ("Cabbeen", stock code: 2030), one of the leading menswear designer brands in China, announced its interim results for the six months ended 30 June 2016 (the "Period").

Results and Operation Highlights:

Financial highlights

• Revenue decreased by 4.5% to RMB536.2 million
• Gross profit increased by 2.4% to RMB269.3 million with gross profit margin increased to 50.2%
• Profit for the Period down by 31.5% to RMB102.2 million
• Basic earnings per share is RMB0.14
• Interim dividend of HK6.8 cents per share and dividend payout ratio is approximately 40%

Retail network and performance

• Operating 1,012 retail outlets
• 422 retail outlets were operated using consignment model, representing approximately 41.7% of total retail outlets
• Total retail revenue decreased by 5.3% and SSSG declined by 6.9%
• Average retail discount was approximately 27.8%
• Up to 30 June 2016, sell-through rate of the Group's 2015 collections was over 77% and 2016 spring/summer collections over 36%

E-commerce business

• E-commerce retail revenue increased by over 73% to RMB97.1 million
• Own online stores on popular e-commerce platforms including T-mall and JD.com, and Cabbeen's official website

Commenting on the future prospects, Mr. Ziming Yang, Chairman of Cabbeen said, "The weakened macroeconomic environment and consumer sentiment in mainland China is expected to continue in the second half of 2016. However, we believe there are still tremendous growth opportunity in the long run as the consumer spending in China will continue to be fueled by the emerging middleclass."

"Looking forward, we will adhere to our multi-brand strategy, offer a wider range of apparel products and enhance value for money of our products. At the same time, we will keep enhancing operation efficiency, shorten the product development and procurement cycle and have more stringent cost control measures. For retail network expansion, we will hold a more cautious stance reviewing low-productivity stores and slow down the opening of new retail outlets. On the other hand, given the trend of mobile application changed customers' consumption pattern, we will make additional investments to develop our mobile ordering platform on social media and upgrade our ERP system to facilitate the integration of online and offline distribution channels."

For further inquiries, please contact:

iPR Ogilvy & Mather
Tina Law/ Candy Tam/ Lily Zhang
Tel:           (852) 2136 6181/ 3920 7626/ 3920 7625
Fax:         (852) 3170 6606
Email:     cabbeen@iprogilvy.com