Li Biao Brand Released 2014 Annual Report Annual Net Profit Fell 8.2%

Global Brands Group Holding Ltd. (0787.HK) Li brand limited yesterday released its first annual report after the listing of Li Fung Ltd. Ltd. (0494.HK) Li & Fung Co., which was driven by a 24.9% increase in profits in the second half of the year. The profit adjusted by the profit margin of the brand in the second half of December 31, 2014 was increased from $99 million a year or 1.18 cents per share (9.23 HK cents) to 108 million dollars or 1.29 cents per share (about 10.09 Hong Kong cents).

In the 2014 fiscal year, the real net profit of Li Biao brand declined by 8.2%, from 1.14 dollars a year or 1.36 cents per share (or 10.59 cents) to 104 million dollars or 1.25 cents per share (about 9.27 cents).

As of December 31, 2014, fiscal year GBG 2014

The total income was recorded at 3 billion 454 million US dollars, up 5% from 3 billion 288 million US dollars in the same period last year; gross profit increased by 10.6%, from 1 billion 10 million US dollars in the same period last year to 1 billion 117 million US dollars, gross margin increased by 160 basis points to 32.3%; core earnings rose 15.2%, from 134 million US dollars in the same period last year to 154 million dollars; the core profit margin rate increased by 15.2% percentage points in the same period last year; EBITDA recorded US dollar, a rise of US dollar compared with the same period last year, and the EBITDA profit margin has a growth rate of 1 basis point to zero.

Since GBG was not stripped of Li Feng from the second half of 2014, its performance in the second half showed that it was pure after stripping.

The company's performance was clearly due to the first half of the mixed manufacturing business.

By the end of December 31, 2014, in the second half of fiscal year 2014, the net profit of GBG Li Biao brand was recorded at US $2.02, up 24.9% from 1.62 US dollars in the same period last year.

An increase of 7.5% to 2 billion 105 million US dollars, compared with 1 billion 958 million US dollars in the same period last year, and the core profit growth rate is as high as 36.6%, from 159 million US dollars in the same period last year to 2 billion 170 million US dollars.

The brand is now mainly divided into the authorized brand department and the brand control department. The authorized brand department's revenue rose 2.8% in the second half of fiscal year in 2014, from 1 billion 550 million US dollars in the same period last year to 1 billion 594 million US dollars. The gross profit margin of the Department rose 33.4% year on year by 150 basis points, and the core business profit margin 9.1% increased by 130 basis points compared with the same period last year. The authorized brand department's income increased 2.5% to 2 billion 746 million dollars in 2014, the gross profit margin was 32%, and the core operating profit margin was 4.1%.

The main brands of authorized brand departments include Calvin Klein, Coach, Disney Disney, Nautica, Tommy Hilfiger, Michael Kors, Under Armour and Izod.

The brand control department's revenue rose 25.3% in the second half of fiscal year in 2014, from 408 million US dollars in the same period last year to 511 million US dollars. The gross profit margin of the Department rose 35.8% year on year by 510 basis points, and the core business profit margin 14% increased by 470 basis points compared with the same period last year. The brand control department's total income rose 16.3% to 707 million dollars in 2014, which was 608 million dollars in the same period last year.

The main brands include Spyder, Frye, Juicy Couture, Aquatalia and the newly established football star David Beckham David Beckham.

GBG's chief executive officer Bruce Philip Rockowitz Yue Yumin expects that the gross profit margin of the group will continue to rise in the current fiscal year, which is mainly stimulated by the expansion of business scale, the growth of sales volume and revenue growth in the brand sector.

The GBG brand did not send a final dividend. On Thursday, the stock closed at HK $1.22, or 1.61%, and dropped more than 40% since its listing of HK $2.09 in July 9th.