Driven by China's retail business, Hong Kong's Portsill Fashion's annual net profit rose 53.9% to RMB 254 million (RMB, the same below) as of the end of December. Its turnover increased by 23.86% to RMB 1.055 billion, and gross profit margin increased by 4.27 percentage points to 69.54. %; The final dividend per share is 0.17 yuan. Baozi closed at HK$18.6 on the 22nd, up 2.5%.

According to the "Hong Kong Economic Times" report, retail sales, which accounted for nearly 80% of total sales, rose by 30.34% to 838.8 million yuan.

The Group stated that the retail stores mainly sell apparels of the Ports and BMW lifestyle brands, and the average unit price and same-store sales during the period increased by 7% and 31% respectively over the same period of last year, while the gross profit margin increased by 2.4 percentage points to 80.9%.

Last year, the original equipment manufacturing business, which accounted for 15% of turnover, saw a slight increase in sales of 1.81% to 160 million yuan, and gross profit margin rose by 0.8 percentage point to 18%. However, the group plans to reduce the share of such business this year.

In addition, the high-achieving Ports Fashion since its listing in 2003 intends to repeat the operating myth of Esprit's “Asia before the World” operation. After two or three years, it will consider injecting North American and European operations into listed companies.

Chen Qitai, chief executive officer and managing director of Ports, said on the 22nd that at present, unlisted European and American businesses have recorded profit. Seventy and three Ports retail locations are located in North America and Europe respectively.

Chen Qitai added that the European and American businesses will eventually be injected into listed companies. However, the group is still not fully familiar with the operation of the capital market in Hong Kong. Therefore, it will take another two to three years for consideration.

As for the injection form, Chen Qitai believes that Esprit first listed the Asian business and then injected it into Europe and the Americas. The group believes this is a model that can be learned.

The Ports Fashion brand was established in the 1960s by Luke Tanabe in Toronto, Canada, and was subsequently transferred to Chen Kaitai and Chairman Chen Hanjie. In 2003, the Asian business was listed in Hong Kong.

According to the survey report of China National Studies Association and VOGUE Magazine, last year, Portsuit, which invested 4% of its annual sales revenue for women's fashion brands considered the most fashionable, ranks third, second only to Louis Vuitton and Channel.

Chen Qitai said that the major investment banks in the mainland have also contacted the group and proposed an initial plan for listing on the Shanghai Stock Exchange. Because the Group has a certain reputation on the mainland, the mainland's securities market also lacks high-end brand retail companies. However, for the group, the A-share market is still “too new and too early”.

As of the end of last year, Ports has 357 retail outlets in China, an increase of nearly 10% year-on-year. The group plans to expand its retail business in mainland China by 8% this year.

The average retail price of Ports Fashion has increased by 7% for two consecutive years. Chen Qitai explained that the overseas sales price of Ports Fashion is about 40% higher than that of the mainland, so the price gap has further narrowed the gap.