Goodbaby International's Net Profit amounted to HK$91.4 million

HONG KONG, Aug. 27, 2015 /PRNewswire/ --

Goodbaby International Holdings Limited ("Goodbaby International" or the "Company", SEHK stock code: 1086, together with its subsidiaries, the "Group"), an international, vertically-integrated durable juvenile products company headquartered in China, announces its interim results for the six months ended 30 June 2015.

During the first half of 2015, the Group has successfully transformed from an OPM driven business to a brand driven business. During the period, the Group realized revenue of approximately HK$3,684.4 million, increased by approximately 39.5% as compared to the corresponding period of last year. Operating profit realized by the Group was approximately HK$153.1 million, increased by approximately 26.1%; while profit for the year was approximately HK$91.4 million, increased by 2.3% as compared to the corresponding period last year, as partially offset by an increase in finance costs for increased bank loan as a result of the acquisitions and an increase in income tax expenses caused by higher income tax rate of Acquired Business (CYBEX and Evenflo). The Board of Directors did not recommend any final dividend.

Revenue from Acquired Business was approximately HK$1,489.2 million, representing an increase of approximately 31.1% year-on-year on pro forma basis. Revenue from the Existing Business was approximately HK$2,195.2 million, decreased by approximately 5.6% on a year-on-year basis.

CYBEX achieved record growth

During the first half of 2015, CYBEX's revenues increased by approximately 97.2% in its functional currency to Euro 67.5 million. Rapid growth was fueled by product innovation in car seats and strollers as a result of the synergies achieved through integration of CYBEX into the Group.

Revenues was driven through twelve wholly owned sales offices in Europe, Asia and America, as well as specialist distributors meaning that CYBEX products are available in over 100 countries, making the brand globally recognized. A new direct distribution sales office was opened in America and quickly scored a major success by securing a rollout of the Brand in all Buy Buy Baby premium baby stores in the USA.

Evenflo recovery ahead of plan

Evenflo reversed several years of stagnant trading and losses in operating profit in the first half of 2015, increasing revenue by approximately 17.4% in its functional currency to US$116.9 million, whilst achieving profit at operating profit level ahead of plan.

Taking advantage of the synergies in the design and development of strollers from the Group's Boston design office, new placements were secured. At the same time cost reductions have been implemented as a result of group shared services.

Realized rapid growth in online channels and enhanced offline channels in China

During the first half of 2015, the Group's revenue from the China market was approximately HK$875.1 million, representing an increase of approximately 4.4% on a year-on-year basis. The Group's sales to online channels realized revenue of approximately HK$ 246.9 million, accounting for 28.2% of the total revenue from the China market and representing an increase approximately of approximately 36.4% on a year-on-year basis.

The Group further enhanced its in-depth management over offline third-party retail outlets while continued to reinforce the online channels. During the period, distribution through Wechat platform was also developed. The marketing approach also changed quickly from a segregated development of online and offline channels to O2O model of integrated online and offline channels.

Order decline from largest customer offset by order increase from other Blue-chip customers and internal orders from CYBEX and Evenflo

In the first half of 2015, the Group recorded revenue decline from its largest Blue-chip customer, nonetheless, the Group's revenue from other Blue-chip customers was approximately HK$662.8 million, representing an increase of approximately HK$144.0 million as compared to that of HK$518.8 million recorded during the corresponding period last year. Orders from CYBEX and Evenflo increased rapidly to approximately HK$284.2 million, offsetting the decline in orders from our largest Blue-chip customer.

Looking ahead, Goodbaby International's Chairman and CEO Mr. Song Zhenghuan said, "In the second half of 2015, we expect the current trends to continue, with the acquired businesses CYBEX and Evenflo performing ahead of its original plan, China market planning to reinforce in-depth management and performance of online and offline retail channel for sustainable growth. The Existing Business of brands in overseas market will remain stable but to be improved while it is expected that change in Blue-chip business will continue. We will continue to facilitate integration and globalization with an aim to optimizing our profitability and returns to our shareholders."

About Goodbaby International Holdings Limited

Goodbaby International is one the world's leading global durable juvenile products companies, headquartered in China. We adopt a vertically integrated business model. The Group's core capabilities lie in research & development, design and quality manufacturing, branding, marketing and sales of juvenile products, such as strollers, children's car safety seats, juvenile household products (e.g. cribs, safety gates, high chairs and infant seats), as well as juvenile toy vehicles (e.g. stationary activity centers, tricycles, e-cars and scooters).

Goodbaby International has over 13,000 employees worldwide; we own eight research & development centers globally including Americas, Europe and Asia and manages sales, marketing and distribution offices in 11 countries.

With this global presence, localized operations and strong capabilities in brand building, the Group has a leadership position in the juvenile goods industry. Every day, millions of parents count on the quality, reliability and performance of our products.