Thursday, March 28, 2024
 
Columnist
Martin Hennecke
 
PORTS
HKEx Stock Code : 00589 
 
Corporate Profile
The Group is a vertically integrated, international fashion and luxury goods company with its own design, manufacturing, distribution and retail capabilities. The Group is primarily engaged in the design, manufacture and retail distribution of ladies' and men's fashion garments and the sales of accessories such as shoes, handbags, scarves and fragrances in the PRC, Hong Kong and Macau, under the brand names Ports International, Ports 1961, BMW Lifestyle, Armani Collezioni, Armani Jeans, Ferrari and Versace.

Business Review - For the year ended December 31, 2012

Although 2012 was a challenging year for retail in China, the Group was able to build on its strong foundations, and continued to expand its retail network by adding three stores in the year. Brand building efforts continued and the Group worked to increase brand awareness of the PORTS brand both in China and internationally. We saw stable sales growth in all areas of the business in the face of an often difficult trading environment. As at 31 December 2012, the Group operated 392 retail stores in the PRC, Hong Kong and Macau.

The year saw the first full year of operations for the Group's new headquarters in Xiamen. Building on the strategy of an improved manufacturing base and an enhanced retail distribution capability, management was able to implement still greater efficiencies in the business through these new facilities. Management's focus on operational control has resulted in only a slight overall year over year increase in the business's expense base. Whilst the gross profit margin stood at 81.9%, the management is hopeful that the operational efficiency could steadily improve going forward.

Recognition by influential market organizations is always exciting as well as a very precious achievement for the Company and our hardworking employees. In this connection, the PORTS brand was once again chosen by the 2012 HURUN Report as one of the top five most desired luxury women's fashion apparel brands in the PRC. PORTS was also judged one of the top ten collections during the FW12 runway season in Milan by Vogue China, putting the brand in the company of several other top-tier brands. We are very pleased with this recognition which reaffirms our popularity and widespread acceptance among the high-end consumers in the PRC market, and continue to build upon the foundation which we have established during the past two decades in order to develop and strengthen the brand yet further.

The dedication of the Group's design and marketing teams saw yet greater appreciation of the PORTS 1961 collections during 2012 in Milan. Awareness of the PORTS brand increased during the year, with global publications offering excellent coverage of both the Men's and Women's SS13 and FW13 collections. The SS13 Women's show was voted as one of the top ten runway shows of the Milan Fashion Week in September 2012. The Group continues to reap dividends from its marketing efforts, as PORTS was publicised by celebrities including Berenice Marlohe, Reese Witherspoon, Karen Mok, Na Ying and Alyssa Milano during 2012.

Business Outlook - For the year ended December 31, 2012

Overall, the Group remains cautiously optimistic about its prospects in 2013, although we do anticipate a challenging year. With the Group's focus on leveraging its growing China footprint, we plan to continue to identify suitable opportunities in both Group's core PORTS-branded business as well as in the licensed brand division. Our many years of experience in China will continue to serve us well and deliver the long-term growth and shareholder value that has always been key to the Group's success.

Source: Ports Design (00589) Annual Results Announcement
Chairman N/A Issued Capital (shares) 554M
Par Value HKD 0.0025 Market Capitalisation (HKD) 3,210M
 
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