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EEKA Fashion Announces 2021 Annual Results, Double-digit Revenue and Profit Growth Driven by Multi-Brand Strategy
-- Revenue increased 19.3% year-on-year to RMB6.4 billion. Net profit increased by 28% to RMB562 million
-- High-end brands Koradior and NAERSI achieved total revenue of over RMB3.7 billion, NEXY.CO retail sales reached over RMB1 billion
-- Proposed dividend of HKD48 cents per share
HONG KONG, Mar 28, 2022 - (ACN Newswire) - EEKA Fashion Holdings Limited (Ticker: 3709.HK, "EEKA" or "the Group") announced unaudited consolidated annual results for the year ended 31 December 2021 ("the period"). In 2021, the Group's revenue increased 19.3% year-on-year to RMB6.4 billion. Gross profit was RMB4.8 billion, representing an increase of 21.2% year-on-year. The gross profit rate was 74.6%. Net profit increased by 28% to RMB562 million.
Mr. Jin Ming, Founder and CEO of EEKA Fashion, said "Based on EEKA's multi-brand strategy, we are committed to providing high-quality products to meet our customer's needs, to further empower the intellectual, elegant, and modern styles for women. EEKA focuses on enhancing our core operational capabilities through innovative research and design, supply chain digitalization, and membership management. With our platform-based multi-brand strategy, we will continue to grow our business amid positive market outlooks, and to fuel the innovations within the industry with our leading position. With that, we are confident in achieving the goal of exceeding 10 billion retail sales by 2023."
During the period, the Group recorded strong double-digit revenue growth for the eighth consecutive year based on the success of multi-brand strategy with its mid- to high-end womenswear brand matrix. The Group is the first in the market to build three RMB1 billion retail sales brands. Two high-end brands Koradior and NAERSI achieved a combined revenue of over RMB3.7 billion, maintaining as the Group's top revenue contributors. NEXY.CO hit RMB1 billion in retail sales for the first time, and revenue recorded at RMB872 million. The youngest brand FUUNNY FEELIN targeting mid-end market also achieved revenue of over RMB100 million, with an impressing growth rate of over 100%.
The Group sustained its growth momentum by continuous operations improvement of its offline retail channels and online e-commerce platforms. EEKA leveraged its competitive advantages in the retail stores, achieving sales close to RMB5 billion, accounting for around 80% of the Group's total revenue. As of 2021, EEKA operated over 1,500 retail stores, with a membership base over 3.6 million, which will help to enhance the Group's revenue growth in long-term. During the period, revenue of e-commerce platforms increased by 23.6% to RMB757 million. While sales from Tmall and VIP.com continued to grow, EEKA Fashion Mall and Douyin channels also became key revenue drivers for the Group, each recording a growth rate at over 200% and 1,400%.
Based on strong brand operating capabilities accumulated for over 20 years, EEKA will continue to solidify its edge from platform-based strategy through digitalization across design, production, marketing and sales. The Group is dedicated to product innovations to offer high-end fashion for customers. Meanwhile, the Group launched digital projects surrounding supply chain optimization and centralized management of membership and product data to further enhance overall efficiency. In 2021, EEKA actively promoted sustainable development, joining "The Smart Coalition for Sustainability" with its eight womenswear brands. The Group also launched "EEKA Prize" to develop young talents in China and promote innovative design for sustainability.
In the future, the Group will continue to enhance its leading position in China's fashion industry, with a clear goal of exceeding 10 billion retail sales by 2023 and 15 billion retail sales by 2025. EEKA will further increase the brand's market influence, digitalization and innovation capabilities based on the strategic focus of "multi-brand and multi-channel". With the vision of "Just for her unique glamour", the Group is committed to creating value for consumers in pursuit of a better life, consolidating its leading position of middle and high-end women's apparel market in China.
Note 1: The Group acquired 65% and 35% of the equity interest of Mondial on 13 July 2016 and 10 November 2021 respectively which has self owned brand "CADIDL". Mondial is an insignificant subsidiary of the Company within the meaning of the Listing Rules.
Note 2: The Group acquired the assets of SK Networks (China) Fashion Co. Ltd. (including fashion products under the brand names "Obzee" and "O'2nd") on 9 March 2017 and terminated an exclusive distribution agreement in April 2020.
Note 3: The Group acquired 100% of the equity interest of Keen Reach which has self-owned brand
"NAERSI", "NEXY.CO" and "NAERSILING" on 3 July 2019.
About EEKA Fashion
EEKA Fashion Holding Limited (Stock Code: 3709.HK) is a well-known fashion apparel group with a unique brand culture concept, advanced research and development design center, sound marketing service system, efficient logistics distribution and network management system. The Company has been deeply involved in China's high-end women's apparel industry since its establishment and was listed on the Hong Kong Main Board in 2014. The Group currently has eight self-owned brands: Koradior, La Koradior, Koradior elsewhere, NAERSI, NAERSILING, NEXY.CO, CADIDL and FUUNNY FEELLN. Over the years, EEKA Fashion Group has been strongly committed on brand internationalization. Since 2015 onwards, many of its brands have been invited to Milan Fashion Week and New York Fashion Week to show the charm of Chinese brands. The Group has always insisted that brand is the root and creativity is the soul, based on customer lifestyle research and brand culture shaping, in view of customer needs and the mission of "Just for her unique glamour", focusing on product innovation and brand communication, and continuing to lead customers' dress and life culture.
This press release is issued by ICA Investor Relations (Asia) Limited on behalf of EEKA Fashion Holdings Limited. For any enquiries, please contact:
ICA Investor Relations (Asia) Limited
Tel: +86 (21) 8028-6033
E-mail: eeka@icaasia.com
Sectors: Fashion & Apparel
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