omniture

Golden Eagle Announces 2007 Annual Results

Golden Eagle Retail Group Limited
2008-04-02 16:51 2114

Profit attributable to equity holders surged by 66.3% to RMB386 million

HONG KONG, April 2, 2008 /Xinhua-PRNewswire/ -- Golden Eagle Retail Group Limited (HKEx: 3308), a premium department store chain in the PRC, announced its 2007 annual results.

For the year ended 31 December

2007 2006 Change

RMB mn RMB mn %

Gross Sales Proceeds ("GSP") 4,858.1 3,577.0 35.8 %

Turnover 1,107.5 900.0 23.1 %

Gross profit 865.1 670.7 29.0 %

Profit attributable to equity

holders 385.7 232.0 66.3 %

Basic earnings per share (RMB cents) 21.2 13.0 63.1 %

Final Dividend per Share (RMB cents) 4.3 2.5 --

The Group's GSP in 2007 was RMB4,858.1 million, representing 35.8% increase from 2006. Profit attributable to shareholders was RMB385.7 million, representing a 66.3% increase from 2006. Basic earnings per share were RMB 21.2 cents. Same store sales growth maintained at high level of 25.8% and per ticket sales grew by 12.2% to RMB451.

The Board of Directors proposed a final dividend of RMB 4.3 cents per share.

In 2007, concessionaries sales contributed 92.2% of the group's GSP and direct sales contributed 7.5% of the group's GSP. The average commission rate has slightly decreased to 20.6%, due to faster sales growth of goods with lower commission rate, generally lower commission rate of new stores, and more discount offered to VIP customers.

On the expansion front, Kunming Store and Nanjing Zhujiang Store commenced soft opening respectively in August and December 2007. The two stores attracted HERMES, GUCCI and FERRAGAMO to become its tenants. Two more new stores, namely Huai An Store and Yancheng Store, are expected to commence operations in 2H 2008.

In March 2008, the Group entered into a management consultancy agreement with Shanghai Golden Eagle International Shopping Centre Co., Ltd.. Such agreement can ensure the value of the Shanghai Shopping will be improved before injection to the Group.

Mr. Roger Wang, Chairman of the Group, concluded, "We will adhere to our self owned property and M&A strategy to expand our network. Meanwhile, we will actively adjust merchandise and brand mix, to shorten the ramp up period of the new stores and enhance profit margin. With our active development plan and defensive self owned property strategy, the Group is confident to reward the shareholders with its outstanding results."

Media contact:

iPR Ogilvy Ltd.

Callis Lau

Tel: +852-2136-6952

Email: callis.lau@iprogilvy.com

Source: Golden Eagle Retail Group Limited
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