Meike International's sales in the first half of 2010 increased 45.0% year-on-year

September 2nd, recently, Meike International Holdings Co., Ltd. ("Mike") announced the 2010 interim results. According to the report, in the first half of 2010, Meike achieved a 45.0% year-on-year increase in sales, reaching 310 million yuan (***, the same below) and a profit of approximately 49.52 million yuan.

According to the report, the sales revenue of Meike footwear products in the first half of the year increased by 76.6% to RMB 158 million. The increase in sales was mainly due to the successful implementation of the exclusive distribution business model and rapid expansion of the retail network. The sales revenue ratio of apparel products increased by 13% to 78.928 million yuan, mainly due to improved product design, quality, and increased product categories. The export sales revenue increased by 10.8% to RMB 50.845 million, mainly due to the recovery of the overseas market economy.

In the first half of the year, the overall gross profit margin of Meike further improved, rising by 1.9 percentage points to 34.1%. However, due to the preferential tax policy of “Exempting from Two Reductions and Three Reductions”, the overall tax rate was raised by 5.5 percentage points year-on-year to 17.7%. As a result, the net profit rate decreased by 1.1 percentage points year-on-year to 16.1%. Basic earnings per share increased by 18.7% year-on-year to 0.05 yuan. The Meike board of directors proposed to pay an interim dividend of HK$0.02 per share, which is equivalent to a 40.0% dividend payout ratio. The report said that the interim results are in line with expectations and that the full-year results are expected to exceed expectations.

According to the report, as of June 30 this year, Meike had 24 distributors, 1,621 retail outlets (including 586 distribution outlets and 1,035 franchise outlets), and more than 521 outlets in 23 provinces, autonomous regions, and municipalities across the country. District, county and county-level cities. The number of stores increased by 303 compared with the end of 2009, equivalent to a year-on-year increase of 23.0%. Meike expects that by the end of 2010, its number of stores will exceed 1,800.