Natural Beauty Announces 2014 Annual Results

— Turnover increased by 15.1% to HK$505.8 million

— Profit before taxation up by 40% to HK$116.3 million and Net Profit up by 22.3% to HK$71.5 million

— Strengthen In Spa operations yielding strong same store productivity drove the growth

HONG KONG, March 31, 2015 /PRNewswire/ — Natural Beauty Bio-Technology Limited (“Natural Beauty” or the “Group”; Stock Code: 00157), the leading professional skin-care, and spa services provider in mainland China, announced today its annual results for the year ended 31 December 2014.

For the year ended 31 December 2014, turnover of the Group grew 15.1% to HK$505.8 million year-on-year (2013: HK$439.4 million), driven by an increase in product sales as a result of higher store productivity in mainland China and Taiwan. Overall gross profit margin improved to 76.9%, as contribution from higher-margin products increased within the Group’s sales mix (2013: 75.8%). Profit for the year increased by 22.3% to HK$71.5 million (2013: HK$58.5 million). Earnings per share were HK3.6 cents (2013: HK2.9 cents). The Board recommended to distribute a final dividend of HK3.188 cents per share.

Despite the economic growth slowdown in mainland China, turnover in the mainland China market rose by 16.9% to HK$420.3 million for the year ended 31 December 2014. The growth was primarily driven by increase in sales of products, mainly due to the pilot-testing of “direct-own retail” management system to exercise better control over franchisees in order to drive higher store productivity. During the year under review, gross margin of this segment was up 1.8 percentage points to 78.7%. Turnover for the Taiwan market also registered growth of 7.9% to HK$80.6 million, as the Group adopted door-by-door management via franchisee differentiation to utilize company resources efficiently. Gross margin of this segment expanded 4.7 percentage points to 67.7%. The gross margin improvement in both mainland China and Taiwan was a result of higher sales contribution from higher-margin products such as NB-1, and lower promotion discounts during the year under review. On the other hand, sales in other regions, including Hong Kong, Macau and Malaysia, decreased by 8.5% to HK$4.8 million for the year ended 31 December 2014, accounting for an insignificant 0.9% of the Group’s turnover.  

The Group derives its income principally from its network of distribution channels, including spas and concessionary counters in department stores. As at 31 December 2014, there were 1,364 spas and 14 concessionary counters. A total of 35 new stores were opened and 74 stores were closed during the year ended 31 December 2014.

During the year under review, average sales per store in mainland China grew 21.5% while average sales per store in Taiwan rose by 15.2%.

The Group puts significant emphasis on discovering the insights of consumer needs. During the year ended 31 December 2014, the Group’s flagship NB-1 products generated HK$217 million in sales, accounting for more than 40% of the Group’s total product sales during the year. With effective product line rationalization plan, NB-1 Revital series was successfully re-launched as home care product line in order to boost product sales and enhance brand loyalty. Among which, NB-1 Revital Sleeping Mask was well-received by customers in product efficacy.

Ms. Karen Chang, Chief Executive Officer of the Group said, “Looking ahead, we will press on with our prudent growth strategy to sustain the growth momentum while mitigating the escalating rental and labor cost pressure in mainland China. We will continuously implement “direct-own retail” management system with an aim to boost the franchisees’ productivity as our major growth driver in near future. We will enhance our operational efficiency by streamlining organizational structure, implementing a more integrated go-to-market process and improving cost-control measures. We will also focus our marketing and promotional efforts to drive more sell-through by franchisees. Leveraging our position as a leading skin care brand and spa operator in the Greater China Region, we strive to strengthen our competitive edges by implementing the aforesaid strategies, so as to satisfactory returns for our shareholders.”

About Natural Beauty Bio-Technology Limited
Natural Beauty is a leading beauty and spa services and products provider in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group is engaged in research and development, manufacture and sale of skin care, aroma-therapeutic and beauty products, marketed under the brandname “NB®”. The products are distributed through a distribution network of over 1,300 NB’s SPAs and dedicated counters in Greater China.

For further information, please contact:
iPR Ogilvy & Mather
Natalie Tam/ Juliana Li
Tel: +852-21366182/ +852-21690467
Fax: +852-31706606

Kerry Logistics’ FY2014 Core Net Profit up 10% to HK$976 million

Solid Growth in All Segments Driven by Successful Business Integration

HONG KONG, March 26, 2015 /PRNewswire/ — Kerry Logistics Network Limited (“Kerry Logistics” or  together with its subsidiaries,  the “Group”; Stock Code 636), a leading logistics service provider in Asia, today announced the Group’s annual results for 2014.

Group’s Financial Highlights

  • Turnover increased by 6% to HK$21,115 million (2013: HK$19,969 million)
  • Core operating profit increased by 14% to HK$1,612 million (2013: HK$1,413 million)
  • Core net profit increased by 10% to HK$976 million (2013: HK$886 million)
  • Integrated Logistics (“IL”) business achieved a 12% increase in segment profit to HK$1,409 million (2013: HK$1,258 million)
  • International Freight Forwarding (“IFF”) business recorded a 11% increase in segment profit to HK$378 million (2013: HK$342 million)
  • All segments recorded improved margins in 2014
  • Full-year dividend payout ratio increased to 24% (2013: 21%)
  • Final dividend of 8 HK cents per share recommended

William MA, Group Managing Director of Kerry Logistics, said, “2014 was a year of consolidation and integration for Kerry Logistics. Through organic growth, investments and strategic acquisitions, we continued to expand our operating scale, strengthen our service capabilities and extend our network coverage during the year. Resources were deployed to integrate newly acquired businesses into our existing network and system, enhancing service offerings and increasing efficiencies. These efforts produced double-digit growth in both our core operating profit and core net profit, as well as improved margins in all our business segments.”

Expanding Scale through Continued Investments

The Group continued to enrich its logistics facility portfolio during the year. As at 31 December 2014, it managed a logistics facility portfolio of 45 million square feet, of which 23 million square feet were self-owned.

In Mainland China, the Group completed the development of two new logistics centres in Zhengzhou and Kunshan, and commenced construction of two other facilities in Chengdu and Xi’an, adding a total of 1.6 million square feet of logistics facilities to its portfolio in the country. It also purchased a parcel of land with a site area of 728,000 square feet in Shanghai for the development of a new flagship facility of 1.1 million square feet to cope with the expansion of its IL business in the city.  Upon completion, it will be the largest logistics facility of the Group in Mainland China.

Within ASEAN, the Group has been building new facilities in Thailand to capture rising opportunities in this dynamic market. Phase 2 of the new logistics centre in Rayong was completed during the year.  Phase 1 of the Kerry Bangna Logistics Centre is currently under construction and will serve as a new sorting centre for Kerry Express and a fulfilment centre for e-commerce customers upon completion.  In addition, the Group added a new warehouse and a new Inland Container Depot in Kerry Siam Seaport to develop the port into a key cargo gateway for the growing trade in the region. In Cambodia, the Group is planning to construct a 160,000 square feet bonded warehouse on its newly acquired land at a Free Trade and Special Economic Zone in 2015.

Enhancing Capabilities by Service Scope Extension

In 2014, the Group’s IL segment maintained solid growth on the back of expanding network and coverage in Greater China and ASEAN countries, with more higher-margin value-added services and new customer wins. The Group’s logistics operations achieved a segment profit margin of 10% in 2014. Turnover and segment profit of the logistics operations in Hong Kong also increased by 22% and 28% year-on-year respectively.

In Hong Kong, the Group launched Kerry Pharma to tap into the ever-growing pharmaceutical and healthcare market by setting up a brand-new GMP compliant secondary packaging facility and obtaining the WHO GDP certificate for the provision of warehousing, distribution and secondary packaging services for pharmaceutical products.  It also expanded into the automotive sector in Hong Kong and was appointed to provide parts logistics services to several internationally renowned automotive brands. Across the Taiwan Strait, the Group has built a service network supported by ten service hubs that covers the whole island, and became the only logistics company attained SGS WHO GDP international quality accreditation as well as GDP from the Taiwan Food and Drug Administration. 

Riding on the success of the fast-growing Kerry Express (Thailand), the Group took further steps to build an ASEAN-wide regional express platform through acquiring a local express company in Cambodia and expanding the business into Singapore, Malaysia, Indonesia and the Philippines.  To strengthen its ASEAN-wide cross-border road transportation network, Kerry Logistics took full control of the KART business in Malaysia and Thailand, further integrating the operations in the two countries into its KART network. The Group also formed a new joint venture with shareholders of PT Puninar Saranaraya, one of Indonesia’s largest logistics companies, in March 2015 for growth of IL business in Indonesia.

Extending Coverage through New Market Expansion

During the year, the Group restructured its business in Europe which contributed to satisfactory results in tandem with the gradual economic recovery in the region. As part of the Group’s long-term IFF strategy to build a global network across six continents, it has also expanded the reach and capacity of its IFF business through acquisitions and the formation of new joint-ventures in the Middle East, Canada, New Zealand and Senegal. The stable growth of the IFF business was accompanied by increased profitability and volume. While the segment profit increased by 11%, the segment profit margin rose to 3%, bringing it closer to the international average.

Hong Kong Warehouse — Unlocking Asset Values and Maximising Returns

Kerry Logistics’ Hong Kong warehouse portfolio comprised nine warehouses with a combined GFA of 5.1 million square feet. It maintained nearly full occupancy with segment profit margin increased to 59.7% and achieved double-digit growth in rentals for successful contract renewals. The Group expects to see continuous stable growth from this business riding on its 9% growth in segment profit in 2014.

In a bid to unleash the potential of its facility portfolio and to address actual community needs, the Group submitted an application to the Town Planning Board of Hong Kong in the first quarter of 2015 to convert one of its Hong Kong warehouse facilities into a columbarium. Subject to approval, the investment, excluding land premium to be paid to the government, is estimated to be around HK$2 billion.

George YEO, Chairman of Kerry Logistics, said, “The integration of China’s economy with its neighbours is a major trend seen by the increasing intra-Asian trade and growing cross-border logistics.  The combined economy in the region is becoming the central growth pole in the world.  With our unique position as ‘Asia Specialist, China Focus, Global Network’, we aspire to be a major logistics provider for the new Silk Road. We will continue to grow our IL and IFF businesses through continuous improvements in operating efficiencies, service offerings, network coverage, and securing suitable acquisition opportunities in target markets. Our extensive exposure in the region and a broader international customer base will enable us to ride economic cycles and sustain long-term growth to reward our shareholders.”

About Kerry Logistics Network Limited (Stock Code 636)

Kerry Logistics is a leading logistics service provider in Asia with extensive operations across Greater China and other countries in the region. It is principally engaged in the integrated logistics and international freight forwarding businesses and currently has more than 550 office locations in 39 countries and territories. By managing 45 million sq. ft. of logistics facilities, it provides customers with reliability and flexibility to support their expansion and long-term growth. Kerry Logistics Network Limited is listed on the Hong Kong Stock Exchange. For more information, please visit

NetDragon Announces Fourth Quarter and Fiscal Year 2014 Financial Results

Strong Revenue and Operational Metrics Growth

HONG KONG, March 26, 2015 /PRNewswire/ — NetDragon Websoft Inc. (“NetDragon” or “the Company”) (Hong Kong Stock Code: 0777), a leading developer and operator of online games and mobile internet platforms in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2014. A conference call and webcast is scheduled at 8 p.m. Hong Kong Time on March 26, 2015 to discuss the results and recent business developments.

Fiscal Year 2014 Financial Highlights

  • Revenue was RMB962.8 million, an increase of 8.9% from RMB 884.5 million last year.
  • Operating profit was RMB252.0 million, an increase of 24.3% from RMB202.8 million last year.
  • Profit from continuing operations attributable to owners of the Company was RMB176.7 million, an increase of 7.5% from RMB164.4 million last year.
  • Basic and diluted earnings per share were RMB34.77 cents and RMB34.22 cents, respectively.

Fourth quarter 2014 Financial Highlights

  • Revenue was RMB282.9 million, an increase of 21.6% quarter-over-quarter and 23.5% year-over-year.
  • Gross profit was RMB246.5 million, an increase of 17.9% quarter-over-quarter and 19.7% year-over-year.
  • Operating profit was RMB4.0 million, a decrease of 93.2% quarter-over-quarter and an increase from an operating loss of RMB1.7 million during the same period of 2013.
  • Non-GAAP operating profit[1] was RMB13.5 million, a decrease of 79.7% quarter-over-quarter and an increase of 19.4% year-over-year.
  • Loss attributable to owners of the Company was RMB19.4 million, compared to profit attributable to owners of the Company of RMB52.6 million during the previous quarter. Non-GAAP profit attributable to owners of the Company, which excludes several non-core operational items, was RMB6.8 million.
  • Basic and diluted losses per share were RMB3.78 cents and RMB3.82 cents, respectively.
  • The Board of Directors has proposed a final dividend of HK$0.20 per share subject to the approval by shareholders at the Annual General Meeting.

Fourth quarter 2014 Operational Highlights[2]

  • Peak concurrent users (“PCU”) for online games were 642,000.
  • Average concurrent users (“ACU”) for online games were 301,000.

“We experienced a healthy 8.9% increase in revenue to RMB962.8 million during the year as we further consolidated our market position in the gaming space and pushed forward with the development of our online education platform,” commented Mr. Dejian Liu, Chairman and Executive Director of NetDragon. “Our online games business continues to gain strong growth momentum during the quarter with peak concurrent users reaching 642,000 as revenues increased 6.7% year-over-year to RMB221.5 million. One of our newest games, Calibur of Spirit, continues to gain strong user traction following its selection for the World Cyber Arena last fall. We signed an exclusive China licensing agreement with Tencent and officially launched the game in January 2015 where it achieved record-high MAU of 7 million that month and monthly gross revenue over RMB21.0 million in February 2015. With such a strong performance at the beginning of its lifespan, we are confident that this game will develop into a substantial long-term new revenue stream as large scale marketing campaigns get underway and new updates are launched throughout the year. We launched new expansion packs for our flagship games during the period including an English version for Conquer Online which generated an 11-year high monthly revenue in December 2014. We are also excited to beta-launch Tiger Knight later this year.”

“We continued to incubate our mobile games business during the quarter and have seen encouraging progress from Eudemons Online Pocket Version which was officially launched in January 2015 and is expected to register over RMB10 million in monthly gross revenue in March 2015. The iOS and Android versions of Blade & Sword continue to make steady progress through the various stages of development while the Arabic version of The Pirate remains extremely popular across the Middle East and North Africa where it is expected to continue to grow as new updates are launched.” 

“NetDragon’s new strategic business focus continues to be its online education business which completed a round of series A preference shares funding of US$52.5 million in February 2015. The participation of globally renowned investors demonstrates the confidence they have in our unique position to leverage our proven world-class mobile internet and gaming expertise, large-scale technology resources and team infrastructure to build an online and mobile education ecosystem. We are making very solid progress in the design and development of our educational products, and remain on track to gradually roll them out as each development milestone is achieved. We expect to make exciting announcements in the coming months regarding our overall product strategy and the unique value proposition we can create for students, educators and parents.” 

Mr. Ben Yam, Chief Financial Officer, added, Non-GAAP profit for the quarter was RMB4.1 million which is a blended figure combining our highly profitable gaming business and our online education business which is currently in product development stage. During the quarter, our online games business achieved revenue growth of 6.7% year-over-year and 9.8% sequentially with a stable operating cost structure. We also continue to invest heavily in the development of educational products which requires significant investments in staff costs and has reduced the blended profitability in the short-term. These investments however, are the best use of our cash and demonstrate our commitment to building an online education business that will become another cornerstone for our long-term success.”

[1] See the ‘Non-GAAP Financial Measures’ section at the bottom of this release for more details

[2] PCU and ACU include the Company’s new micro-client game Calibur of Spirit

Fourth quarter 2014 Unaudited Financial Results


Revenue was RMB282.9 million, an increase of 21.6% from RMB232.7 million in the previous quarter and 23.5% from RMB229.0 million during the same quarter last year.

Revenue from online games and other business generated from China was RMB229.0 million, an increase of 16.9% from RMB195.9 million in the previous quarter and 11.6% from RMB205.2 million in the same quarter last year. The increase in revenue was mainly due to the strong performance of Eudemons Online and Calibur of Spirit.

Revenue from online games and other business generated from overseas markets was RMB53.9 million, an increase of 46.2% from RMB36.8 million in the previous quarter and 126.0% from RMB23.8 million in the same quarter last year due to the growth in the Company’s mobile solutions and marketing business operated by its Hong Kong-based subsidiary Cherrypicks.

Gross profit and gross margin

Gross profit was RMB246.5 million, an increase of 17.9% from RMB209.2 million in the previous quarter and 19.7% from RMB205.9 million in the same quarter last year. Gross margin was 87.2%, compared with 89.9% in the previous quarter and 89.9% in the same quarter last year. The decreases in gross margin were partly due to the inclusion of Cherrypicks which generates lower gross margins when compared with NetDragon’s online games business.

Operating expenses

Selling and marketing expenses were RMB51.2 million, representing an increase of 32.8% from RMB38.6 million in the previous quarter, and 61.6% from RMB31.7 million during the same period last year. The increase in selling and marketing expenses was mainly due to the increase in advertising and promotional expenses of Eudemons Online and Calibur of Spirit.

Administrative expenses were RMB120.9 million, representing an increase of 55.9% from RMB77.5 million during the third quarter of 2014 and a decrease of 14.2% from RMB140.9 million during the same period last year. The quarter-over-quarter increase in administrative expenses was mainly due to the increase in (i) staff costs; and (ii) depreciation and amortization. The year-over-year decrease in administrative expenses was mainly due to the (i) decrease in exchange loss on foreign currencies; and (ii) expenditure of domain name during the same period last year.

Development costs were RMB89.3 million, representing an increase of 32.6% from RMB67.3 million during the third quarter of 2014 and an increase of 100.8% from RMB44.5 million during the same period last year. The sequential and year-over-year increases in development costs was mainly due to increases in (i) staff costs; and (ii) outsourcing fees.

Other expenses were RMB12.0 million, representing an increase of 226.7% from RMB3.7 million during the third quarter of 2014 and 126.4% from RMB5.3 million during the same period last year. The sequential and year-over-year increases in other expenses was mainly due to the increase in allowances on trade receivables.

Operating profit

Operating profit from continuing operations was RMB4.0 million, a decrease of 93.2% from RMB57.7 million in the third quarter of 2014, and an increase from an operating loss of RMB1.7 million in the same quarter last year.


Taxation was RMB9.4 million, an increase of 126.6% from RMB4.2 million during the third quarter of 2014 and a decrease of 43.7% from RMB16.8 million during the same quarter last year. The sequential increase in taxation was mainly due to an under provision for tax in 2014 while the year-over-year decrease was mainly due to the decrease in taxable profit.

(Loss) profit for the period from continuing operations

Loss from continuing operations was RMB22.2 million, compared with profit of RMB52.4 million in the previous quarter and loss of RMB2.7 million in the same quarter last year.

Non-GAAP profit from continuing operations, which excludes a net loss on held-for-trading investments (which tend to fluctuate quarter-to-quarter), an exchange loss and amortization of intangible assets resulting from the acquisition of Cherrypicks last year, was RMB4.1 million during the fourth quarter of 2014. 


As of December 31, 2014, NetDragon had bank deposits, bank balances, cash, pledged bank deposits and held-for trading liquid investments of approximately RMB3,484.8 million, compared with RMB4,483.7 million as of December 31, 2013. 

Business Review and Outlook


On October 26th, 2014, NetDragon began beta testing “Goddess Era,” a new expansion pack for Eudemons Online that introduces the “Goddess Gifts” system and allows players to enhance their character’s attributes free of charge. The new expansion pack, which enhances gameplay and increases user stickiness, is expected to begin closed beta testing during the first half of 2015. Eudemons Online celebrated its anniversary in March 2015 with in-game activities. Conquer Online, the Company’s other flagship title, also launched a new expansion pack “King of Kungfu” in October 2014. By adding new classes to the game, the expansion pack provides more excitement for players. The English, French, Spanish and Arabic versions of Conquer Online’s expansion pack were also launched overseas. A class-updated version of Conquer Online — The Rhapsody of Ice and Fire: Taoist Ascending will be launched during the first half of 2015 and is expected to maintain the game’s market share overseas. Revenue generated by the English version of Conquer Online in December 2014 reached an 11-year high as a result of the enhanced competitiveness of the game in various countries and regions worldwide.

Calibur of Spirit, NetDragon’s first MOBA web micro-client game, officially began open-beta testing on January 16, 2015, achieving MAU of 7 million that month and over RMB21.0 million in monthly gross revenue in February 2015 demonstrating the Company’s world-class game-design and development capabilities. The game was previously selected for the 2014 World Cyber Arena held in Yinchuan, China in October 2014. Marketing and promotional events have rapidly increased the game’s operational metrics. The Company also signed an exclusive China licensing agreement for Calibur of Spirit with Tencent at the end of 2014. NetDragon is confident that revenue from this game will grow substantially as large scale publicity campaigns get underway. The Portuguese and Spanish versions of Calibur of Spirit have already been completed and are scheduled to begin testing in Latin America and Europe in the first half of 2015. The Company’s in-house developed 3D action war game Tiger Knight began its first round of internal beta testing during the fourth quarter of 2014 and will begin its second round during the second quarter of 2015. A new expansion pack for Way of the Five was launched during the quarter along with annual celebration activities which began on March 7, 2015.

NetDragon continued to release content updates for its mobile game including one for the Arabic version of The Pirate in the fourth quarter of 2014 in an effort to solidify its existing player base as well as to seek out new players. This resulted in new record high monthly gross revenue in October 2014. The Company is committed to its strategy of developing high-quality products and continues to develop mobile products to ensure their success in an increasingly competitive market. The iOS version of Blade & Sword, NetDragon’s self-developed mobile 2.5D martial arts role-play game, finished closed beta testing in November 2014 and is currently undergoing closed beta testing of its iOS version with the Android version expected to begin closed beta testing in the first quarter of 2015. Martial Overlord, a mobile 3D martial arts action game, began channel testing in November 2014 and its second round of beta-testing in March 2015. The iOS version of Eudemons Online Pocket Version was officially launched on Apple’s AppStore in January 2015 with open beta testing for the Android version beginning at the same time. Waku & Maou, is a real-time strategy-based collectible mobile card game which began being operated by China’s leading mobile game publisher in January 2015. The Android version began its first round of closed beta testing in January 2015 with open beta testing for the Android and iOS version expected to begin during the first half of 2015.

Online and Mobile Education 

The Company made very strong progress in research and development, pedagogy integration, content partnership and acquisition, sales channel build-out and M&A discussions for its online and mobile education business during the fourth quarter and fiscal year 2014.

Research & Development — The Company’s educational product design and R&D team currently comprises of over 350 staff. With world-class leadership, the team focuses on the design and development of both software and hardware, and over the course of 2014, has achieved many milestones in the development of high-quality and differentiated software. The Company’s 101 student tablet, which has also gone through multiple design iterations, will be commercially launched during the third quarter of 2015. The Company’s product development roadmap to create a holistic, integrated total-solution for online and mobile education remains unchanged. The initial version of the commercialized product will be focused on enabling best-in-class interconnectivity in the classroom, and will create true value through a transformational yet easy-to-learn educational solution for teachers and students. The Company will update the market when more information on product launches is available. In addition, the Company expects to officially open a research lab in Beijing in the coming months to extend its talent acquisition reach. The current plan is to scale the office to hundreds of R&D staff within one to two years to accelerate educational research and development.

Pedagogy Integration — NetDragon continues to deepen its partnership with Beijing Normal University, China’s top education university, to ensure the most effective pedagogy is being developed and integrated based on collaboration with proven hands-on educators. In November 2014 NetDragon, signed an agreement with Beijing Normal University to jointly research e-classroom design in an effort to develop insight into how software and hardware can best be integrated with various teaching models in a classroom learning environment. One March 18, 2015, NetDragon’s education subsidiary and Beijing Normal University also announced the establishment of Smart Learning Institute which will provide a unique platform to integrate the most advanced e-pedagogy with NetDragon’s mobile internet expertise and technological know-how. The Company believes the accumulation and understanding of pedagogy through its partnerships with top-tier universities and institutions including Beijing Normal University will form a significant barrier to entry.

Content Partnerships — NetDragon signed a MOU in November 2014 with a subsidiary of Pearson, the globally renowned leading education company, and Beijing Normal University, to develop a smart education solution. This collaboration will leverage Pearson’s rich K12 educational content resources to build China’s leading integrated smart education solution. In addition, the Company is also in discussions with numerous major publishers and content partners to enrich the content on its platform.

Channel Build-Out — The Company is in the process of building a nationwide school distribution network for its educational products. Currently, the Company is in discussion with over 20 regional and local distributors and has secured distribution agreements with a number of them. The Company is also in active discussions with several channel partners in addition to conventional distributors.  

M&A — NetDragon is in advanced discussions with multiple major acquisition targets in the online education space. If such acquisitions materialize, the Company’s competitive position in the market will further be enhanced.

Fundraising — In February 2015, NetDragon’s education subsidiary closed a Series A equity fundraising round of US$52.5 million led by IDG, Vertex (a Temasek subsidiary) and Alpha Animation, at a valuation of US$477.5 million

Other developments Netdragon was officially admitted to the Education Informatization Standard Committee under the Ministry of Education in November 2014. Membership will allow NetDragon to participate in the forming of technology standards, which will be conducive in developing the right products that meet or exceed regulatory standards. NetDragon is one of a very select few tier-one mobile internet companies who are members of the committee.

Non-GAAP Financial Measures

To supplement the consolidated results of the Company prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), the use of certain non-GAAP measures is provided solely to enhance the overall understanding of the Group’s current financial performance. These non-GAAP measures are not expressly permitted measures under HKFRSs and may not be comparable to similarly titled measures for other companies. The non-GAAP financial measures of the Group exclude share-based payments expense, amortisation of intangible assets arising from acquisition of subsidiaries, interest income on pledged bank deposits, exchange gain (loss) on pledged bank deposits, secured bank borrowings and redeemable convertible preferred shares, net gain (loss) on derivative financial instruments, finance costs and gain on disposal of subsidiaries (net of related income tax).

Management Conference Call

NetDragon will host a management conference call and webcast to review its the fourth quarter and fiscal year 2014 results on Thursday, March 26, 2015, at 8pm Hong Kong time.

Details of the live conference call are as follows:

International Toll                              


US Toll Free                                       


Hong Kong Toll Free                          


China Toll Free (for fixed line users)      


China Toll Free (for mobile users)         




A live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon’s website at Participants in the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for “4Q and Fiscal Year 2014 Results Conference Call” and follow the registration instructions.

About NetDragon

NetDragon Websoft Inc. (HKSE: 0777) is a leading innovator and creative force in China’s online games and mobile internet industries. Established in 1999, NetDragon is leading developer in the mobile internet segment with a highly successful track record which includes the development of flagship MMORPGs such as Eudemons Online and Conquer Online, China’s number one online gaming portal,, and China’s most influential smartphone app store platform, 91 Wireless, which was sold to Baidu in what was at the time the largest internet M&A transaction in China in 2013. Being a China’s pioneer in overseas expansion, NetDragon directly operates a number of game titles in over 10 languages internationally since 2003. NetDragon continues to strive for developing mobile games and software applications for users. In recent years, NetDragon has also become a major player in China’s online and mobile education industry as it works to leverage its mobile internet technologies expertise and know-how to develop a game-changing education ecosystem product.

For investor enquiries, please contact:

NetDragon Websoft Inc.

Ms. Maggie Zhou
Senior Director of Investor Relations
Tel.: +852 2850 7266; +86 591 8754 3120





4Q 2014

3Q 2014







RMB ‘000

RMB ‘000

RMB ‘000

RMB ‘000

Continuing operations






Cost of revenue





Gross profit





Other income and gains





Selling and marketing expenses





Administrative expenses





Development costs





Other expenses





Share of losses of associates





Operating profit 





Interest income on pledged bank deposits





Exchange gain (loss) on pledged bank deposits and secured bank borrowings




Net (loss) gain on derivative financial instrument




Gain on disposal of available-for-sale investment


Net (loss) gain on held-for-trading investments





Finance costs





(Loss) profit before taxation










(Loss) profit for the period/year from continuing operations





Discontinued operations

Profit for the period/year from discontinued operations


(Loss) profit for the period/year





Other comprehensive expense for the period/year, net of income tax:

Exchange differences arising on translation of foreign operations that may be reclassified subsequently to profit or loss





Total comprehensive (expense) income for the period/year





(Loss) profit for the period/year attributable to:

 -Owners of the Company





 -Non-controlling interests









(Loss) profit for the period/year attributable to owner of the Company:

 -from continuing operations





 -from discontinued operations


(Loss) profit for the period/year attributable to owner of the Company







(Loss) profit for the period/year attributable to non-controlling interests:

 -from continuing operations





 -from discontinued operations


(Loss) profit for the period/year attributable to non-controlling interests





Total comprehensive (expense) income attributable to:

-Owners of the Company





-Non-controlling interests









RMB cents

RMB cents

RMB cents

RMB cents

(Loss) earnings per share

From continuing and discontinued operations

– Basic





– Diluted





From continuing operations

– Basic





– Diluted














Non-current assets

Property, plant and equipment



Prepaid lease payments




Investment property


Intangible assets


Interests in associates



Available-for-sale investments



Loan receivables



Deposits made for acquisition of property, plant and equipment



Other receivable





Deferred tax assets





Current assets

Prepaid lease payments



Loan receivables



Trade receivables



Amounts due from customers for contract work


Other receivables, prepayments and deposits



Amounts due from related companies



Amounts due from associates


Held-for-trading investments



Pledged bank deposit



Bank deposits



Bank balances and cash





Current liabilities

Trade and other payables



Amounts due to customers for contract work


Deferred income



Amount due to a related company


Amount due to an associate


Secured bank borrowing



Other financial liability


Income tax payable





Net current assets



Total assets less current liabilities



Non-current liabilities

Other payables


Deferred tax liabilities



Net assets



Capital and reserves

Share capital



Share premium and reserves



Equity attributable to owners of the Company



Non-controlling interests






Insurance + Investment Model Achieved Uprising Success

Fosun’s implementation of the Buffett model accomplished significant impact

HONG KONG, March 26, 2015 /PRNewswire/ — Fosun International Limited (together with the subsidiaries, “Fosun” or the “Group”, SEHK stock code: 00656) announced its results of 2014. For the year ended 31 December 2014, Fosun’s net assets attributable to owners of the parent reached RMB 49.408 billion, up 24.7% from end-2013. Profit attributable to owners of the parent was RMB 6.854 billion, up 24.2% year on year from 2013.

With the “insurance + investment” twin-driver core strategy, Fosun has accomplished major improvements on both the financing end and asset end as well as the optimization of the overall asset structure. The twin-driver empowered by the “Insurance-oriented Comprehensive Financial Capability” and “Global Industrial Integration Capability Taking Roots in China” has been much strengthened than ever and has established advantages unique to ourselves, like all other world-class investment groups.

Persistent efforts on the financing end: Insurance float approached RMB100 billion, improving ROIC-WACC and EVA generation capability

In 2014, insurance segment profit grew significantly, and the scale of insurance float surpassed the RMB100 billion mark (attributable investible assets at RMB 79.8 billion). Benefiting from the contribution of a large scale of insurance float, ROIC-WACC (after adjustment) and capital employed (after adjustment) started to widen, Economic Value Added (“EVA”) of investible assets continued to enlarge and it will become a critical growth engine for Fosun in the future.

Fosun continued to speed up its development on the foundation comprising Yong’an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance. In May 2014, Fosun completed its acquisition into an 80% interest in Fosun Insurance Portugal (comprising the three insurance companies namely Fidelidade, Multicare and Cares), the leading insurer in Portugal with a 30% local market share, at a consideration of EUR1.038 billion.  In early 2015, Fosun further increased its equity interest in Fosun Insurance Portugal to 84.986%.  This is one of the most important acquisitions for Fosun over the last 23 years, adding more than EUR 13 billion of new total assets to our Group, including in excess of EUR12 billion of investible assets. With the same logic, from the second half of 2014 to date, Fosun invests in the global insurer Ironshore which specializes in specialty insurance, and an US P&C insurer Meadowbrook Insurance Group (NYSE:MIG) which has rich experiences in labor insurance businesses.

As at 31 December 2014, the assets of insurance segment under management by Fosun exceeded RMB 113.085 billion, comprising 34.8% of the Group’s total assets. Upon completion of the Ironshore and MIG transactions, this proportion and scale are expected to climb up further.  

Insurance has become the most important segment for Fosun and has exerted a fundamental impact on the overall business operation and profit generation for the Group. In 2014, the operating revenue from the insurance segment hit RMB 7.868 billion, up 2,742.3% year-on-year, and contributed to 12.7% of the Group’s total revenue. Profit attributable to owners of the parent generated from the insurance segment stood at RMB1.149 billion, up 119.4% and contributed to 16.8% of the Group’s profit attributable to owners of the parent. Fosun’s ratio of net debt over shareholder equity declined to 73.3% in 2014 from 86.0% in 2013, and it is anticipated that it will decline stably in the future.

In 2014, Fosun’s attributable investible assets generated from the insurance segment reached RMB 79.81 billion in 2014, up 1,335.6% year-on-year. Thus, the investible capital (after adjustment) was also increased to RMB 214.703 billion, up 57.2% year-on-year. Meanwhile, the ROIC-WACC (after adjustment) reached 2.2% in 2014, up 0.6 percentage point year-on-year. In the future, as insurance assets eligible for consolidation for the year expanded, the ROIC-WACC (after adjustment) and investible capital (after adjustment) is expected to continue to increase, so EVA generation is also expected to expand.

Thanks to the efforts made by the insurance business team and the rapid, deep and persistent impact of Fosun’s investment capabilities on the return on assets of the invested insurance enterprises, the invested insurance enterprises saw their premium income and return on assets grow rapidly and healthily. Taking Fosun Insurance Portugal as an example, its consolidated return on assets climbed to 8.4% in 2014 from 4.3% in 2013. For the domestic invested insurance enterprise, Yong’an P&C Insurance, its consolidated return on assets also climbed to 12.6% in 2014 from 5.4% in 2013.

It is worth mentioning that the increased return on assets had not only been a result of any aggressive asset allocation that Fosun has adopted. In fact Fosun had been a bit biased towards the conservative end. For instance, 81.3% of Fidelidade’s assets were allocated to fixed income investments and cash last year. Only the remaining 18.7% were appropriated to equity and infrastructure real estate assets.

Investments focused health and happy & fashionable lifestyle industries, rolled out ecosystem planning and sped up participation in industry consolidation around the world with China momentum

In 2014, Fosun focused more on planning the ecosystem layout for the healthcare and happy & fashionable lifestyle and participate in consolidation of industries around the world, including cases like the privatization of Chindex, our acquisition into the whole of Luz Saude healthcare group of Portugal, the establishment of Studio 8 as a controlling shareholder, the privatization of Club Med and our investment in Thomas Cook which have just been concluded. These famous enterprises are all in the healthcare and happy & fashionable lifestyle industry ecosystem.

The healthcare and happy & fashionable lifestyle segment achieved revenue of RMB11.94 billion in 2014, up 20.3% year-on-year and contributed to 19.3% of the Group’s total revenue. Profit attributable to owners of the parent reached RMB1.702 billion, up 53.6% year-on-year and contributed to 24.8% of the Group’s profit attributable to owners of the parent. Segment net assets reached RMB26.747 billion, up 19.5% year-on-year and contributed to 35.3% of the Group’s net assets.

Currently, the healthcare industry of Fosun consists of strong and industry-leading participants, including Fosun Pharma, Alma Lasers, Luz Saude, United Family Hospital, Chancheng Hospital, Multicare Healthcare Insurance, all of which Fosun has controlling interests in. Fosun is also joint venture partners in Sinopharm, Starcastle Senior Living and Pramerica Fosun Life Insurance. Enterprises on Fosun’s happy & fashionable lifestyle industry platform include strong and industry-leading players including Yuyuan, tourism destination enterprises such as Club Med, Atlantis in Sanya, the creative film producer Studio 8, etc. In early of this year, Fosun shall put particular emphasis on supporting participation of these platform enterprises in consolidation of industries around the world. Fosun seeks to bridge the value mismatches between the robust China’s consumption momentum and these brands and services preferred by customers around the world. Fosun seeks to integrate resources, meet the need for good life from customers around the world, especially those in China, with the best products and services, building a healthcare and happy & fashionable lifestyle ecosystem that is based on the China’s growth momentum and the capability of integrating industries around the world.

Asset allocation: the health and happy & fashionable lifestyle businesses of high growth and weak cyclicality had taken over the dominant position

Following years of determined transformation, Fosun’s integrated financial segment assets expanded rapidly. Apart from enhancing investment in insurance business, Fosun acquired Hani Securities of Hong Kong last year, invested in 2 financial leasing companies, i.e. Chuangfu Financial Leasing and Hangzhou Financial Investment Leasing. Ali Small Loan, which Fosun had participated in its establishment and operation for many years, has become a showcase model of clientele expansion driven by scalable internet financial services. In 2014 the China Banking Regulatory Commission (CBRC) officially approved Fosun’s eligibility as one of the main co-founders of the Internet commercial bank “Zhejiang Internet Commerce Banking Co., Ltd.”

In early 2015, Fosun has announced that the Group has collaborated with Fidelidade to invest EUR 59.14 million to increase its interests in RHJI (which wholly owns BHF-Bank, one of the largest independent private banks in Germany and the UK time-honored private bank Kleinwort Benson specialized in commercial banking). Upon approval by relevant regulatory authorities, Fosun will hold indirectly a 28.61% interest in RHJI versus previous 19.49%, enabling the Group to bring to customers in China the world’s best-in-class private banking services and allow the invested enterprises to reap benefits from prosperity and growth of the financial market in China.

The growth in integrated financial businesses, together with the previously mentioned healthcare and happy & fashionable lifestyle businesses, constitute two segments of high growth and weak cyclicality. These two segments achieved revenue of RMB 20.954 billion in 2014, up 95.1% year-on-year and contributed to 33.9% of the Group’s total revenue. Profit attributable to the owners of the parent was RMB 5.279 billion, up 73.4% and contributed to 77.0% of the Group’s profit attributable to owners of the parent.

To develop “Insurance + Industry + Hive 1+1+1” cross-industry integration innovation closed loop

Leveraging Fosun’s established capabilities in healthcare, happy & fashionable lifestyle, logistics and commodity industries, the Group encouraged cross-industry integration and proactively promoted connection of industries with insurance and finance, capabilities of creating environment that facilitated integration of industries and insurance into hive cities, creating one cross-industry integration operation platform unique to Fosun after another.

In 2014, Fosun put great efforts in pursuing the establishment and development of Hive cities and sped up the transformation of upgrading traditional property businesses. Hive cities is a product integrating Fosun’s industrial resources to assist local governments in the construction of core urban functions, with a key feature of “industry-backed urban development and urban-industry integration”. Through providing core urban functions required by the cities, Fosun is able to take a lead in introducing its core industrial resources and to further introduce ancillary industries that support the core industries, with a view to promoting “Urban-Industry integration” by establishing a 24-hour plus 3-in-1 vibrant community for work, consumption and living, as well as introducing living and consumption services industries.

As at 31 December 2014, Fosun launched a cumulative total of 12 hive cities in 5 major categories. The Group initiated the five city functions with multi-industry operations including the healthcare hive, culture & entertainment, travel & leisure, logistics & trade and financial services. Total construction areas for hive cities invested by our managed funds and participating and controlling companies exceed 4.7 million sqm.

As for Fosun’s travel & leisure hive project in Sanya, Hainan, the world’s third Atlantis hotel that integrates tourism, properties and financial industries, its GFA of construction area aggregating around 510,000 sqm. By the end of 2014, we already invested RMB 2.35 billion. The construction work has been progressing smoothly and will be completed by the end of 2016. It will become the benchmarking product as a 3.0 upgrade version of tourism resort in Hainan. Meanwhile, we has also facilitated the cooperation of Starcastle Senior Living, Forte, Pramerica Fosun Life Insurance in the Shanghai Starcastle Zhonghuan Community, establishing a senior living community of the highest quality in Shanghai with medical and senior care services. Furthermore, Fosun will also make use of its “Fosun healthcare + Insurance + Leasing + StarHealth Hive” cross-industrial integration model to promote a countrywide healthcare and senior care system. It will launch a pilot scheme of “Club Med + Insurance + Overseas properties” cross-industrial integration to promote development of tourism destinations around the world both on a sale or rental basis. It will also launch a pilot scheme of the “Overseas properties + Insurance + Industries (rental by function)” cross industrial integration model to promote office properties ownership around the world.

Fosun has not been lagging behind the mobile Internet innovation trend

The mobile Internet, with its vast user base, accessibility anytime anywhere, connectivity with the rapidly developing Internet of the Things, has imposed thorough changes to everything in the environment. Fosun firmly believes that mobile Internet will allow the Chinese market to perform on par, if not better, than the US market. Mobile Internet will force every traditional industry to make a choice between pursuing full integration into mobile Internet, or to delineate from mobile Internet. Every industry is forced to find an ultimate way of survival under the mobile Internet environment.

In 2014, the Group’s Internet investment team and venture capital platform continued to focus on innovations on traditional industries brought about by the mobile Internet and mobile Internet related technologies (Internet Plus), persisting in “first or unique in the industry” as the guideline in identifying projects. Its existing investment portfolio has already covered digital healthcare, Internet finance, Internet tourism, online education, mobile social industries, etc.  Our showcase projects including Ali Small Loan, Perfect World, Linekong Interactive,, Ali’s Dream Castle and My Money, etc. As at 31 December 2014, Fosun has invested HKD 836 million in VC area, and more than USD 500 million in the entire Internet area over the year.

The Group is also building the layout of connecting traditional industries with mobile Internet and Internet of the Things. Fosun proactively pursues connection of Yong’an P&C Insurance, Great China Financial Leasing and Internet P2P business for a pilot P2P Internet financial leasing program under credit insurance; also new scenario O2O app, e.g. + Fosun Pharmacy. The Group is also fully prepared to promote Internet financial services based on real-world logistics and warehousing control and connecting with the Internet, such as “Hainan Mining + Finance + Internet Ore Trading Platform + Logistics”, “Nanjing Steel + Finance + Internet Steel Trading Platform + Logistics”, “Yuyuan Gold + Finance + Internet Gold Trading Platform”, “ROC + Finance + Internet Oil Product Trading Platform + Logistics”. Accordingly, the Group has invested heavily in medical cold chain logistics, participated in Cainiao Logistics, commissioned construction of Tianmiao Logistics cities, and established cold chain logistics, etc. In the future, Fosun will further promote industries integrating Internet and finance for upgrading and transformation, e.g. environmental transformation of “Nanjing Steel + Environmental Investment + Insurance + Leasing”.

In 2014, Fosun persistently implemented its “Mobile Fosun” strategy and successfully developed its instant chatting & communications apps/system, namely “Fosun Chat”.  Fosun also actively explored its O2O business. Fosun wishes to fully promote and establish its “Cloud + Terminal” within the organization based on this system. Through developing mobile Internet technologies and adopting a mobile Internet mentality and methodologies, Fosun can integrate and survive in mobile Internet era by upgrading and transforming all Fosun staff and businesses and systems with mobile internet technologies. We encourage every enterprise to develop user terminals and improve our product and user experiences, facilitating more frequent transactions among the offline customer results, and getting connected and transformed into online users. With its unreserved integration with mobile internet, Fosun will not be lagging behind the Internet and mobile Internet innovation trend. You will see Fosun on the cutting edge of mobile Internet and Internet of the Things in the future.

Looking ahead: Adhering to investment discipline, persisting in value investing, dancing with cyclicality on the value floor

Adhering to the basic logic and discipline of value investing is always the most important principle of Fosun. Value investing is both you need to be disciplined and also you have to dance with cyclicality. In the future, we need to persistently apply the most stringent investment discipline on ourselves. We need to learn day after day, accumulate and improve so as to become an intelligent vital entity. In the future, Fosun will continue to adhere to its value investing principles, integrate and combine global resources,  combining and integrating global resources, continue to strengthen its investments with insurance funds, expand the comprehensive financial assets and health & happy lifestyle industries, and fully embrace with mobile internet, with the aim to becoming a world-class investment group underpinned by the twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability”. We believe that the world will be different because of Fosun. Life will become better because of Fosun.

Nirvana Asia Announces 2014 Annual Results

Adjusted profit for the year attributable to owners of the Company increased by 28.5% to USD44.6 million

Recommended a final dividend of HKD0.05 per ordinary share

HONG KONG, March 20, 2015 /PRNewswire/ —


  • Revenue increased by 18.2% compared to last year.
  • Adjusted EBITDA[1,2] increased by 18.2% compared to last year.
  • Adjusted profit margin for the year[2] increased to 28.3%.
  • Adjusted profit for the year attributable to owners of the Company[2] increased by 28.5% compared to last year.
  • Contract sales increased by 13.2% compared to last year.
  • A final dividend of HKD 0.05 per ordinary share is recommended.


EBITDA is calculated by adding finance cost and depreciation and amortisation to profit before taxation.


Adjusted to exclude share-based payment expenses of USD3.3 million in 2014, Listing expenses of USD5.3 million in 2014, other expenses relating to the Listing of USD0.3 million in 2014 and reversal of provision for quit rent and assessment of USD1.9 million in 2013, which are non-recurring.

Nirvana Asia Ltd (“Nirvana Asia” or the “Company”, together with its subsidiaries, the “Group”, SEHK stock code: 1438) announces today its annual results for the year ended 31 December 2014. 

During the year under review, the Group recorded solid growth in both contract sales and revenue. Contract sales and revenue for the year ended 31 December 2014 amounted to USD206.7 million and USD165.1 million, respectively, representing an increase of 13.2% and 18.2% compared to last year. Gross profit increased by 19.8% year-on-year to USD116.4 million. Gross margin improved by 0.9 percentage point to 70.5%, mainly attributable to product mix, selling price growth and economies of scale. Excluding share-based payment expenses, listing expenses and other expenses relating to the listing of the Company’s ordinary shares on The Stock Exchange of Hong Kong Limited in December 2014 (the “Listing”) totalling USD8.9 million in 2014, and reversal of provision for quit rent and assessment of USD1.9 million in 2013, the Group’s adjusted profit for the year attributable to owners of the Company was USD44.6 million, up by 28.5% year-on-year. Basic earnings per share were US1.74 cents.

The board of directors of the Company recommended a final dividend of HKD0.05 per ordinary share.

Nirvana Asia offers integrated premium death care services through nine cemeteries in Malaysia, one cemetery in Indonesia, 10 columbarium facilities in Malaysia, one columbarium facility in each of Singapore and Indonesia, and two funeral homes in Malaysia. Pioneering in the pre-need market for death care services in Asia, pre-need segment is the major source of the Group’s revenue. For the year ended 31 December 2014, pre-need revenue increased by 21.3% to USD134.7 million, contributing 81.6% of the Group’s total revenue. Meanwhile, as-need revenue recorded a mild growth of 5.8% to USD30.4 million, accounting for 18.4% of the Group’s total revenue. The increase in revenue was primarily driven by sales of burial services from Bukit Mertajam, Kulai, Semenyih, and Penang, in Malaysia.

In terms of geography, revenue from Malaysia increased by 21.7% to USD140.6 million, accounting for 85.2% of the Group’s total revenue. The increase was primarily driven by revenue contribution from the newly acquired cemeteries in Bukit Mertajam in Malaysia, and an increase in sales from the Penang Island columbarium facilities in Malaysia. Revenue from Singapore increased by 22.9% to USD18.2 million, while revenue from Indonesia decreased from USD9.4 million to USD6.3 million due to the limited burial plots inventory in the Group’s cemetery near Jakarta in Indonesia.

For the year ended 31 December 2014, average sales price (“ASP”) per unit for burial services increased by 5.3% to USD11,462 per unit. The increase was primarily due to change in revenue mix and price revision from different cemeteries. ASP per case for funeral service package increased by 15.0% to USD6,900 per case, primarily due to product mix, price revision and increase in optional related products and services on a per item basis, which created additional revenue sources.

According to Frost and Sullivan, an independent industry consultant, death care services and products are the basic and essential needs of significant importance to the ethnic Chinese population. Increasing grave yard congestion, inadequate maintenance, unpleasant ambience and low security in public cemeteries as well as rapid urbanization, increasing affluence and public awareness have led the ethnic Chinese population to search for high quality death care services and products offered by reputable operators. The management believes that these factors have become the requisite drivers in stimulating future market growth.

The management is also of the view that the death care services market in Malaysia, Singapore, and Indonesia will remain bullish due to the potential of the untapped pre-need markets. According to Frost and Sullivan, the penetration rate of pre-need death care services and products in 2013 was estimated to be 5.8%, 1.9% and 0.8% in Malaysia, Singapore, and Indonesia, respectively. Upon just a 1% increase in penetration rate, it will generate USD373.7 million, USD113.0 million and USD368.4 million of pre-need revenue in Malaysia, Singapore, and Indonesia respectively.

In February 2015, the Group entered into binding cooperation agreement with Huizhou Longyan Art Cemetery Development Co., Ltd. which marked its first step tapping into the China market. In March 2015, the Group acquired the business of tomb design and construction from its tomb contractor. This downstream acquisition would allow the Group to strengthen its capabilities in the death care service sector while pursuing diversified development along the industry value chain. While the Group continues to expand in its home markets, its cemetery in Thailand is expected to launch by the end of March 2015. In addition, its operation in Huizhou, China, is scheduled to commence operation in the third quarter of 2015. The Group is also actively pursuing opportunities in Vietnam and other parts of Indonesia and China.

Dato’ Kong Hon Kong, an executive director, the Managing Director and the Chief Executive Officer of Nirvana Asia said, “The Listing of Nirvana Asia signalled a new chapter to take us another step forward in pursuing our expansion in the region. Leveraging on the Group’s in-depth industry experience, precise development strategies and execution capabilities, we strive to further strengthen our leading position in the sector by expanding our foothold in new markets, so as to deliver sustainable results to our shareholders.”

For further information, please contact:
iPR Ogilvy & Mather

Natalie Tam / Charis Yau / Juliana Li / Candy Tam
Tel: (852) 2136 6182 / 2136 6183 / 2169 0467 / 3920 7626
Fax: (852) 3170 6606

About Nirvana Asia

Nirvana Asia is the largest integrated death care service provider in Asia, in terms of contract sales, revenue and land bank in 2013. The Company offers burial and funeral services and products on both as-need and pre-need bases, strategically targeting the premium segment of the death care services market. In 2013, Nirvana Asia is the largest death care service provider in Malaysia and the only commercial columbarium operator in Singapore. Currently, the Company offers death care products and services through a network of 10 cemeteries, 12 columbarium facilities, six on-site crematoria and two funeral homes in Malaysia, Indonesia and Singapore.

Galaxy Entertainment Group Reports 2014 Annual Results

Group Adjusted EBITDA up 5% Year-on-Year to $13.2 Billion

Net Profit Attributable to Shareholders Increased by 3% Year-on-Year to $10.3 Billion

Galaxy Macau™ Phase 2 and Broadway at Galaxy Macau Set to Open on Schedule as The Next Major Projects in Macau on 27 May 2015

Subsequently Announced Another Special Dividend of $0.28 Per Share

HONG KONG, March 19, 2015 /PRNewswire/ — Galaxy Entertainment Group Limited (“GEG” or “the Group”) (HKEx stock code: 27) today reported results for the three months and twelve months periods ended 31 December 2014.


GEG: Solid Revenue and Earnings Amid Challenging Second Half of 2014

  • Full year Group revenue increased by 9% year-on-year to $71.8 billion
  • Full year Group Adjusted EBITDA of $13.2 billion, an increase of 5% year-on-year
  • Net profit attributable to shareholders grew 3% year-on-year to $10.3 billion
  • Fourth quarter Group Adjusted EBITDA decreased 25% year-on-year to $2.7 billion

Galaxy Macau™: Resilient Performance

  • Full year revenue increased by 18% year-on-year to $46.9 billion and Adjusted EBITDA grew by 12% year-on-year to $9.9 billion
  • Fourth quarter Adjusted EBITDA decreased 19% year-on-year to $2.0 billion
  • StarWorld Macau: Decline in Full Year Revenue and Adjusted EBITDA Due to Worse than Expected Fourth Quarter
  • Full year revenue decreased by 4% year-on-year to $22.6 billion and Adjusted EBITDA of $3.5 billion, a decrease of 6% year-on-year
  • Fourth quarter Adjusted EBITDA of $645 million, a decrease of 38% year-on-year

Development Update: Launch of Galaxy Macau Phase 2 and Broadway at Galaxy Macau

  • Galaxy Macau™ Phase 2 and Broadway at Galaxy Macau — On schedule to open 27 May 2015 as the next major projects in Macau, taking Cotai investment to $43 billion of a total planned $100 billion
  • Cotai Phases 3 & 4 — Site investigation works expected to commence in 2015
  • Hengqin — Plans to develop a world class destination resort on a 2.7 land parcel moving forward
  • International — Continuously exploring opportunities in overseas markets

Balance Sheet: Remains Well Capitalised and Return of Capital to Shareholders

  • Cash on hand of $9 billion and a net cash position of $8.2 billion, virtually debt free
  • Subsequently announced another special dividend of $0.28 per share payable on or about 22 May 2015

Dr. Lui Che Woo, Chairman of GEG said:

“Marking our ten year anniversary in Macau, GEG achieved solid revenue and EBITDA growth of 9% and 5% respectively, despite facing challenging headwinds in the second half of the year. Our ‘World Class, Asian Heart’ service philosophy is imbedded in all aspects of our business and governs every interaction with the customer, enabling us to deliver spectacular and unique holiday experiences.

“In the ten years since we made our debut in Macau, we have built and established world class, award winning hotels and resorts. Today our commitment to supporting Macau to become a World Centre of Tourism and Leisure is stronger than ever. Two ground breaking projects — Galaxy Macau Phase 2 and the rebranded Broadway at Galaxy Macau — are scheduled to open on 27 May 2015. Doubling our footprint to over one million square metres, they take our investment in Cotai to $43 billion — well on the way to our target of investing $100 billion once Phases 3 & 4 are completed. Furthermore, as a good corporate citizen, we always believe that ‘what is taken from the community is to be used for the good of the community’. We are confident that the recently announced $1.3 billion GEG Foundation will reinforce GEG’s commitment to promoting a sustainable future for Macau and make a meaningful difference to the lives of young people in Macau and on the Mainland.

“In parallel, reflecting our commitment to returning capital to shareholders, we paid two special dividends totalling $4.9 billion in 2014 and subsequently announced another special dividend of $0.28 per share.

“There can be no doubt that the second half of 2014 was one of the most challenging periods in the history of Macau. It is therefore more important than ever that all stakeholders in the industry and Macau pull together in one direction to ensure Macau fulfils its vast economic and social development potential.

“We remain optimistic about the future as the fundamental growth drivers for the market such as increasing domestic consumption in China, a rapidly growing affluent middle class and major planned infrastructure improvements, remain unaltered. Together with our clear roadmap for growth, strong balance sheet and powerful brand, we are confident that we can differentiate ourselves from our peers and attract a greater share of new visitors to Macau.

“As always, I would like to thank our team of 17,000 staff for their tireless effort and contributions to the Group’s success.”

Market Overview

2014 saw two very contrasting half year performances, with total gaming revenue in H1 increasing 13% year-on-year and registering an all-time monthly high in February of $36.9 billion, up 40% year-on-year. However, a confluence of factors such as the FIFA World Cup, China’s soft economic landing, rising costs and the Chinese austerity program etc., weighed on the market in the second half resulting in 3% decline in full year total gaming revenue to $341.3 billion. Encouragingly, visitor numbers to the Macau region grew faster than the previous year, increasing by 8% year-on-year to 31.5 million. Visitors from the Mainland increased at an even faster rate of 14% and now represent 67% of total visitors to Macau (2013: 64%).

Underscoring Macau’s continuing appeal as a vibrant and dynamic tourism and leisure hub catering to a broader customer base, mass revenue increased by 16% year-on-year to $120.9 billion, now accounting for approximately 35% of the Macau market. VIP revenue in the year decreased by 11% year-on-year to $206.3 billion. It remains the largest segment of the market, accounting for approximately 60% of total gaming revenue.

GEG expects the structural shift in the market to mass to continue in the coming years as visitors are drawn to a number of major new projects in Macau that will greatly enhance its MICEE, recreational, dining, retail and entertainment offer, and nearby Hengqin undergoes a transformation into a new regional business and leisure hub. Major planned future infrastructure improvements such as the Taipa Ferry Terminal, the Macau Light Rail Transit and the Hong Kong-Zhuhai-Macau Bridge, are expected to facilitate greater visitor numbers by improving access to Macau and connectivity within the territory. GEG’s complementary properties and Cotai development pipeline leave it well placed to cater for a new type of visitors looking for more holistic holiday and leisure experiences.

Group Financial Results

The Group’s revenue and Adjusted EBITDA for the full year climbed 9% year-on-year to $71.8 billion and by 5% year-on-year to $13.2 billion, respectively, despite a challenging second half of the year. Net profit attributable to shareholders increased 3% year-on-year to $10.3 billion. The results were largely due to Galaxy Macau™ where Adjusted EBITDA grew 12% year-on-year. StarWorld Macau posted a 6% year-on-year decrease in Adjusted EBITDA as challenging market conditions impacted its VIP business in the second half of the year. City Clubs and the Construction Materials Division contributed Adjusted EBITDA of $166 million and $465 million, respectively.

A key contributing factor in the Group’s earnings was the solid performance in the mass segment. Galaxy Macau™’s mass revenue increased from $10.5 billion in 2013 to $12.1 billion in 2014 (up 16%), with StarWorld Macau delivering growth of 12% year-on-year to $4.3 billion. In addition, Galaxy Macau™ also achieved very healthy volume and revenue growth in the VIP segment, with the latter gaining 20% year-on-year to $31.7 billion.

The Group’s total gaming revenue for 2014 on a management basis[1] grew 9% year-on-year to $71.0 billion driven by solid increases in VIP and Mass. Total Mass revenue increased 12% year-on-year to $18.8 billion while VIP revenue climbed 8% year-on-year to $50.4 billion. Electronic gaming revenue also grew 3% year-on-year to $1.8 billion.

Balance Sheet and Special Dividends

The Group’s balance sheet remains well capitalised and liquid, with cash on hand of $9 billion and a net cash position of $8.2 billion as of 31 December 2014. The Group had debt of $790 million. In the year, GEG returned capital to shareholders by paying two special dividends of $0.70 per share and $0.45 per share on 31 July 2014 and 31 October 2014, respectively. Subsequently, the Group has announced another special dividend of $0.28 per share payable on or about 22 May 2015. These dividends reflect management’s confidence in continuing to build out the Group’s development pipeline while generating significant cash flow from operations.

Group Adjusted EBITDA (HK$'m)

Group Adjusted EBITDA (HK$’m)

Galaxy Macau™

Galaxy Macau™ celebrated its third year anniversary in May 2014 and continues to be the growth engine of the Group. The property posted revenue of $46.9 billion, up 18% on the prior year, which translated to a 12% increase in Adjusted EBITDA to $9.9 billion. ROI[2] was 58% for 2014.

Adjusted EBITDA margin under HKFRS and under US GAAP fell by one percentage point year-on-year to 21% and 30%, respectively.

Fourth quarter Adjusted EBITDA was $2.0 billion, a year-on-year reduction of 19%, as market conditions were worse than expected in the second half of the year.

VIP Gaming Performance

Total VIP rolling chip volume for the year was $941.7 billion, up almost 22% on last year. This generated revenue of $31.7 billion (2013: $26.5 billion), an increase of 20% year-on-year. The property closed out the year with fourth quarter VIP net win of $7.4 billion, down 10% year-on-year but up 2% sequentially.

VIP Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014











Net Win









Win %






Mass Gaming Performance

Revenue in the mass segment increased by 16% year-on-year to $12.1 billion (2013: $10.5 billion). Fourth quarter revenue decreased by 8% year-on-year to $2.7 billion.

Mass Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014


Table Drop









Net Win









Hold %






Electronic Gaming Performance

Electronic gaming revenue was $1.6 billion, up 4% on 2013.

Electronic Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014


Slots Handle









Net Win









Hold %






Non-Gaming Performance

Non-gaming full year revenue increased by 6% year-on-year to $1.5 billion, with fourth quarter revenue climbing 17% year-on-year to $408 million. Hotel occupancy was 98%.

StarWorld Macau

StarWorld Macau generated revenue of $22.6 billion and Adjusted EBITDA of $3.5 billion in 2014, decreases of 4% and 6% year-on-year, respectively. Fourth quarter Adjusted EBITDA decreased 38% year-on-year to $645 million. Strong prior year comparatives and challenging market conditions in the second half of the year were all factors impacting results.

Adjusted EBITDA margin in the year decreased by one percentage point year-on-year to 15% under HKFRS and remained at 25% under US GAAP in 2014. The property generated an ROI[3] of 96% for 2014.

VIP Gaming Performance

StarWorld Macau reported VIP rolling chip volume of $622.8 billion in 2014, down 6% on the previous year. This translated to revenue of $17.8 billion (2013: $19.1 billion). Fourth quarter revenue was lower 29% year-on-year.

VIP Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014











Net Win









Win %






Mass Gaming Performance

Mass gaming revenue for 2014 increased by 12% year-on-year to $4.3 billion (2013: $3.9 billion). Fourth quarter revenue was down 19% year-on-year.

Mass Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014


Table Drop









Net Win









Hold %






Electronic Gaming Performance

Electronic gaming generated revenue of $181 million, down 13% on last year.

Electronic Gaming


Q4 2013

Q3 2014

Q4 2014



FY 2013

FY 2014


Slots Handle









Net Win









Hold %






Non-Gaming Performance

Non-gaming revenue increased by 3% year-on-year to $373 million. Hotel occupancy remained at near capacity throughout the year at 98%.

Developing Macau’s Largest Development Pipeline

Launch of Galaxy Macau™ Phase 2 and Broadway at Galaxy Macau

Ten years after opening its first property in Macau, GEG’s next chapter of growth is scheduled to begin with the official opening of Galaxy Macau™ Phase 2 and the rebranded Broadway at Galaxy Macau on 27 May 2015. They will take GEG’s investment in Cotai to $43 billion and double the existing footprint of the resort to 1.1 million square meters. They will offer an unprecedented selection of amenities and attractions that will deliver a more diverse set of experiences for visitors.

Major highlights include:

  • Six hotels providing approximately 4,000 rooms, suites and villas plus two spas, including The Ritz Carlton’s first All-Suite hotel, The Ritz-Carlton, Macau with over 250 suites; Asia’s largest JW Marriott, JW Marriott Hotel Macau with over 1,000 rooms and Broadway Hotel offering 320 well-appointed rooms, complemented by three existing world class hotels: Banyan Tree Macau, Hotel Okura Macau and Galaxy Hotel
  • The Broadway Theater, comprising 3,000 seats and offering guests a unique up-close-and-personal family-friendly entertainment experience featuring the best of traditional and contemporary Asia culture as well as international shows and performances
  • An expanded Grand Resort Deck complete with Skytop Adventure Rapids, featuring the world’s longest skytop aquatic adventure ride at 575 meters long and the world’s largest skytop wave pool
  • The Broadway — a vibrant street and entertainment district showcasing Macanese culture through hawker-style vendors, live entertainers and world class performers, a first in the territory
  • The Promenade, featuring over 200 luxury and lifestyle retail brands
  • Over 120 food & beverage outlets, offering everything from authentic pan-Asian cuisine to world class dining experiences from Michelin starred chefs
  • Portfolio of unique venues and experiences for meetings, incentives and banquets, catering for up to 3,000 guests

GEG believes the dramatically expanded Galaxy Macau™ and Broadway at Galaxy Macau will set a new benchmark in Asia leisure and tourism, creating unforgettable experiences for the whole family to enjoy.

Cotai Phases 3 & 4

Final plans for Phases 3 and 4 of GEG on Cotai are almost complete and site investigation works are expected to begin in 2015. Once these phases are operational, GEG will have realised its overall target of investing $100 billion in Cotai and will have doubled its footprint in Cotai to 2 million square metres, adding thousands of new hotel rooms to the Group’s portfolio.


In early 2014 GEG entered into a framework agreement for a 2.7 square kilometer land parcel to move forward with the proposed development of a world class, low density leisure and entertainment destination resort on Hengqin. Plans are moving apace and GEG expects the development to be highly complementary to its existing and planned portfolio.


GEG continues to actively explore development opportunities in overseas markets.

City Clubs and Construction Materials Division

City Clubs delivered Adjusted EBITDA of $166 million in 2014, a decrease of 8% year-on-year.

Construction Materials Division posted an Adjusted EBITDA of $465 million, down 5% year-on-year.

Community Reinvestment

To mark the Group’s ten year anniversary in Macau and recognising the importance of giving back to the local community and rewarding its 17,000 team members for their valuable contribution to the business, GEG announced two important initiatives in 2014:

  • The announced establishment of a $1.3 billion GEG Foundation in July 2014 which will focus on educating and empowering the young people of Macau and Mainland China.
  • An enhanced employee benefits package which reflects the importance of our team members and the critical role each and every member plays in our continued success.

Both initiatives are consistent with GEG’s commitment to community reinvesting and being a responsible corporate citizen and employer.

Selected Major Awards




Best Managed Companies in Asia – Gaming

Euromoney Magazine

Gaming and Lodging – Best Company

Institutional Investor Magazine – All Asia Executive Team Survey

Casino Operator of the Year Australia / Asia

International Gaming Awards

Best Hotel Group Award

Robb Report China’s 2014 Best of the Best

Forbes Asia’s Fabulous 50 Companies

Forbes Asia Magazine

Galaxy Macau™

Casino VIP Room of the Year

International Gaming Awards

Best Resort of the Year (HK/Macau)

Travel Weekly Magazine and Events Magazine jointly organized – China Travel & Meetings Industry Awards

Best Service Resort Asia

Golden Horse Award of China Hotel

Top 10 Resort Hotels of China

China Hotel Starlight Awards

Hurun Report Best of the Best Awards – Luxury Hotel in Macau Star Performer

Hurun Report

StarWorld Macau

Best Service Hotel of the Year

Travel Weekly Magazine and Events Magazine jointly organized – China Travel & Meetings Industry Awards

Best Service Hotel of Asia

Golden Horse Award of China Hotel

Top 10 Glamorous Hotels of China

China Hotel Starlight Awards

Best Hotel Brand and Service


2014 Asia’s Top Leisure Hotel

NOW Travel Asia Awards

Group Outlook for 2015

GEG is optimistic about the prospects for Macau and the Group in the medium to long term. This confidence is supported by two principal factors: unchanged fundamental drivers for growth such as increasing domestic consumption, a fast growing affluent middle class determined to expand their horizons through travel and planned major infrastructure improvements, all of which will drive visitors to Macau; and secondly, GEG’s substantial and unique development pipeline.

While the market remains challenging, encouragingly visitation to Macau continues to increase. GEG’s hotels are operating at near capacity, highlighting their strong ongoing appeal and robust market demand. Management will continue to focus on driving operational efficiencies, tailoring the offer to meet the evolving market and ensuring the best use of resources. These measures, combined with the opening of Galaxy Macau™ Phase 2 and Broadway at Galaxy Macau in late May, give GEG optimism that growth will resume in the second half of 2015.

Tourism and entertainment is the primary driver of employment creation and economic security for all residents of Macau. All constituents need to harmoniously work together in the current challenging period to ensure that the success that Macau has enjoyed over the past 10 years will continue into the future.

Looking to the future, GEG believes that its strong track record of building world class destination resorts, unique product and service offer and intimate understanding of Asian customers’ changing holiday desires and needs, will translate to sustainable growth in the years ahead.


The primary difference between statutory revenue and management basis revenue is the treatment of City Clubs revenue where fee income is reported on a statutory basis and gaming revenue is reported on a management basis.


ROI calculated based on the total Adjusted EBITDA for the latest twelve months divided by gross book value through 31 December 2014 including allocated land cost.


ROI calculated based on the total Adjusted EBITDA for the latest twelve months divided by gross book value through 31 December 2014 including allocated land cost.

About Galaxy Entertainment Group (HKEx stock code: 27)

Galaxy Entertainment Group Limited (“GEG”) is one of Asia’s leading gaming and entertainment corporations, and is a member of the Hang Seng Index.

GEG primarily develops and operates hotels, gaming and integrated resort facilities in Macau, the only legal gaming location in China and the largest gaming entertainment market in the world.

The two flagship properties of GEG include Galaxy Macau™, a world class integrated destination resort opened in May 2011 at Cotai, and StarWorld Macau, an award-winning property opened in 2006 on the Macau peninsula.

In April 2012, GEG announced the development of Galaxy Macau™ Phase 2 that will nearly double the size of the existing resort to one million square meters. Upon its scheduled opening in May 2015, Galaxy Macau™ Phase 2 will bring to Macau some of the most exciting entertainment, leisure, retail and MICEE facilities. In December 2012, GEG outlined its concept plans for Phases 3 & 4 of its Cotai landbank and expects to commence site investigation works in 2015.

Broadway at Galaxy Macau will be a family oriented integrated resort, linked to Galaxy Macau™ with an air-conditioned sky-bridge.

GEG has entered into a framework agreement with the Hengqin authority to develop a 2.7 square kilometer land parcel for a world class destination resort in Hengqin. This project will complement GEG’s business in Macau and differentiate us from our peers, as well as play a key role in supporting Macau to become a World Center of Tourism and Leisure.

Additionally, GEG operates a Construction Materials Division.

For more information about the Group, please visit

For Media Enquiries:

Galaxy Entertainment Group – Investor Relations
Mr. Peter J. Caveny / Ms. Yoko Ku / Ms. Winnie Lei
Tel: +852-3150-1111

Photo – 

Samsonite International S.A. Announces 2014 Final Results

Net sales reach a record US$2.35 billion

Double-digit Revenue and EBITDA Growth for the Fifth Consecutive Year

HONG KONG, March 17, 2015 /PRNewswire/ —


  • Samsonite posted double-digit growth in both net sales and Adjusted EBITDA for the fifth year running.
  • Samsonite’s net sales for the year ended December 31, 2014 increased by 17.3%[1] to a record US$2,350.7 million with strong growth across all regions. US Dollar reported net sales increased by 15.4%.
    • Asia — 18.0%[1] year-on-year net sales growth.
    • North America — 22.9%[1] year-on-year net sales growth.
    • Europe — 10.4%[1] year-on-year net sales growth.
    • Latin America — 15.7%[1] year-on-year net sales growth.
  • Profit attributable to shareholders increased to US$186.3 million, representing year-on-year growth of 5.8%, or 16.3% excluding acquisition costs and foreign exchange translation losses.
  • Adjusted Net Income[2] increased to US$206.3 million, representing year-on-year growth of 9.0%, or 12.3% excluding foreign exchange translation losses.
  • Adjusted EBITDA[2] increased to US$384.3 million, representing 13.8% year-on-year growth.
  • Net sales of the American Tourister and High Sierra brands continued to deliver strong growth with an increase of 19.0%[1] and 24.9%[1] year-on-year, respectively, while the Samsonite and Hartmann brands saw solid net sales growth of 10.2%[1] and 10.3%[1], respectively.
  • Good progress was made across all four product categories.
    • Travel — net sales increased by 10.9%[1] to US$1,654.4 million.
    • Casual — net sales increased by 25.1%[1] to US$252.1 million.
    • Business — net sales increased by 34.6%[1] to US$256.2 million.
    • Accessories — net sales increased by 76.3%[1] to US$147.2 million.
  • Three acquisitions were completed during the year, which together significantly expand the Group’s brand and product offering:
    • Lipault, a French luggage brand known for its functional and fashionable designs and appeal to female travellers, in April 2014.
    • Speck Products, a leading designer and distributor of slim protective cases for personal electronic devices that are marketed under the Speck® brand, in May 2014.
    • Gregory, a premium technical outdoor backpack brand, in July 2014.
  • Subsequent to 2014, the Group acquired Rolling Luggage in February 2015, providing the Group with a significant retail footprint in some of the world’s leading airports and further expanding the Group’s portfolio of retail store locations.
  • The Group generated US$229.9 million of cash from operating activities during 2014 compared to US$193.0 million during 2013, resulting in a net cash position of US$72.9 million at year-end, providing a solid platform to execute future growth plans.
  • Adjusted basic earnings per share[2] increased to US$0.147 in 2014 from US$0.134 for the previous year. Basic earnings per share as reported increased to US$0.132 from US$0.125.
  • The Board recommended a cash distribution to shareholders of US$88.0 million, or approximately US$0.0625 per share, up 10% from the US$80.0 million distribution paid in the previous year.


Excluding foreign currency effects.


This non-IFRS measure eliminates the effect of a number of non-recurring costs and charges and certain other non-cash items that impact the Group’s reported profit for the year. The Group believes the adjusted figures are useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business.

Samsonite International S.A. (“Samsonite” or “the Group”; stock code 1910), the world’s largest travel luggage company, today announced its results for the year ended December 31, 2014.

The Group’s net sales increased by 15.4% to a record US$2,350.7 million for the year ended December 31, 2014. Excluding foreign currency effects, net sales increased by 17.3%. Excluding amounts attributable to acquisitions made in 2014, net sales increased by US$203.2 million, or 10.0%, and by 11.9% on a constant currency basis. Samsonite continued to benefit from the worldwide growth in travel and tourism as international tourist arrivals grew by 4.7% in 2014 to 1.13 billion travellers, according to the World Tourism Organization (UNWTO).

Reported profit for the year attributable to shareholders increased by 5.8% to US$186.3 million. Excluding acquisition costs and foreign exchange translation losses, profit attributable to shareholders increased by 16.3%. The Group’s Adjusted Net Income increased by 9.0%, to US$206.3 million and by 12.3% excluding foreign exchange translation losses. Adjusted EBITDA increased by 13.8% to US$384.3 million for the year ended December 31, 2014.

Adjusted basic earnings per share increased to US$0.147 in 2014 from US$0.134 in 2013. Basic earnings per share as reported increased to US$0.132 for the year ended December 31, 2014 compared to US$0.125 for the previous year. The Board has recommended that a cash distribution in the amount of US$88.0 million, or approximately US$0.0625 per share, be made to the Company’s shareholders. This represents a 10% increase from the distribution paid in the previous year.

Mr. Tim Parker, Chairman, said, “Since the Group’s listing in 2011, we have achieved considerable growth, and today Samsonite is the leader in travel goods in almost every significant world market. The Group continued its strong momentum in 2014, achieving another year of excellent progress. The next stage of our growth will see the Group develop on a much more ambitious scale as we intend to not only extend our leading position in travel goods with the Samsonite and American Tourister brands, but we will also continue to diversify our brands, product offering and distribution channels. We firmly believe that our business has the capacity to double in size over the next few years, and the progress we have made during 2014 is consistent with our long-term ambition.”

Mr. Ramesh Tainwala, Chief Executive Officer, added, “We are pleased to report another outstanding set of results for the fifth year running, reflecting the consistent and successful execution of Samsonite’s growth strategy. Our business grew nicely across all geographies, brands and product categories in 2014, which is a testament to our ability to deliver best in class products catering to the needs of consumers in individual markets. The Group’s strong performance also demonstrates the resilience of the multi-brand, multi-category and multi-channel model we have established over the last few years as part of our aim to strategically diversify the business. In line with this strategy, last year we acquired three very different, yet complementary brands, Lipault, Speck and Gregory, which together significantly extend our product offering and which we expect will contribute considerably to our topline as we leverage our global distribution and marketing platform to expand them into new markets. Our most recent buy, Rolling Luggage, coming at the start of 2015, establishes a strong retail presence for us in key international airport locations as we push to expand our retail points of sales globally. Looking ahead, we will stay the course of our clear and defined strategy to achieve our goals for sustained growth.”

Table 1: Key Financial Highlights

Year ended

December 31, 2014

US$ (Million)

Year ended

December 31, 2013

US$ (Million)

Percentage change

2014 vs. 2013

Percentage change

2014 vs. 2013

Excl. Foreign

Currency Effects

Net Sales





Profit attributable to shareholders




Adjusted Net Income




Adjusted EBITDA




Basic and diluted earnings per share (US$)




Adjusted basic earnings per share (US$)




Recommended cash distribution




Net Sales by Brand

Net sales of the Group’s flagship brand, Samsonite, increased by 8.6% year-on-year to US$1,535.7 million, accounting for 65.3% of the Group’s net sales, down from 69.4% for 2013, reflecting continuing efforts to diversify the Group’s brand portfolio. Excluding foreign currency effects, net sales of the Samsonite brand increased by 10.2%.

The Group’s mid-priced brand, American Tourister, recorded net sales of US$504.2 million, an increase of 17.4%, or 19.0% on a constant currency basis, from 2013. This growth was largely driven by Asia, which saw net sales for the brand increase by 17.5% in constant currency terms in 2014, accounting for 71.5% of the increase in overall American Tourister brand sales for the year. While accounting for a smaller contribution to the Group’s overall net sales than Asia, net sales of the American Tourister brand also saw considerable growth in Europe, increasing by 54.8% on a constant currency basis.

The net sales growth of both the Samsonite and American Tourister brands was largely the result of expanded product offerings and further penetration of existing markets, which were supported by the Group’s targeted advertising activities.

The High Sierra and Hartmann brands, both acquired by the Group in 2012, posted constant currency net sales growth of 24.9% and 10.3%, respectively, as the Group pursued further geographical expansion of the two brands. Hartmann was launched globally in the fourth quarter of 2014 with the opening of the New York Madison Avenue flagship store in October, followed by the Tokyo Ginza flagship in December, with a total of over 350 points of sales around the world as at December 31, 2014, including key cities such as London, Paris, Moscow, Beijing, Shanghai, Seoul, Hong Kong and Singapore. Meanwhile, the High Sierra brand continued its successful expansion in Asia, Europe and Latin America in 2014.

The Group made three acquisitions in 2014: Lipault, acquired in April; Speck Products, acquired in May, and; Gregory Mountain Products, acquired in July. For the year ended December 31, 2014, net sales of the Speck, Gregory and Lipault brands amounted to US$91.6 million, US$12.6 million and US$5.5 million, respectively. The integration of all three of these businesses is substantially complete and plans are well advanced to expand product ranges and distribution.

Mr. Tainwala said, “Lipault, Speck and Gregory are wonderful new additions to our brand portfolio. Samsonite remains our flagship, but as we diversify and increase our product offering, it will come to account for a smaller proportion of our overall sales. American Tourister continued to drive growth, most notably in Asia, but also in other regions such as Europe. As we continue the broader geographical rollout of High Sierra and Hartmann, we’re seeing very encouraging signs from consumers, and expect both of these brands will be drivers of considerable growth for our business going forward. Our portfolio now comprises a diverse set of well-respected brands in both the travel and non-travel categories and spanning a wide range of price points. In line with our strategic objectives, we will continue to further diversify our offering by monitoring the market for attractive acquisition opportunities.”

Table 2: Net Sales by Brand


Year ended

December 31, 2014


Year ended

December 31, 2013


Percentage change

2014 vs. 2013

Percentage change

2014 vs. 2013

Excl. Foreign

Currency Effects






American Tourister





High Sierra





















[3] The Speck brand was acquired on May 28, 2014
[4] The Gregory brand was acquired on July 23, 2014
[5] Other includes Lipault, Saxoline, Xtrem and others

[6] nm Not meaningful due to acquisition during 2014

Net Sales by Region

The Group continued to achieve strong double-digit constant currency sales growth in all regions in 2014, led by Asia and North America.

The Group’s net sales in Asia increased by 16.1% to US$892.3 million for the year ended December 31, 2014 compared to the previous year. Excluding foreign currency effects, net sales increased by 18.0%. Along with additional product offerings and points of sale expansion, the success of the Group’s business in Asia has been bolstered by a continued focus on country-specific product and marketing strategies to drive increased awareness of and demand for the Group’s products. The sales growth in the region was largely driven by the American Tourister brand, net sales of which accounted for 43.2% of the increase in net sales for the region. The Samsonite Red sub-brand in the Group’s casual category, which was first launched in South Korea in 2010 and is aimed at young fashion-conscious consumers, continued to be popular, with net sales increasing by 91.9% on a constant currency basis to US$57.9 million in 2014 on the back of successful new product introductions and marketing programs. On the back of the success of American Tourister, Samsonite and Samsonite Red, China continued to lead in terms of sales and performance, contributing 25.5% of the region’s net sales and recording 18.4% year-on-year net sales growth, or 18.7% on a constant currency basis, despite a slowing economy which affected consumer spending. Japan posted strong constant currency net sales gains of 32.3%, driven by the success of the Samsonite brand and the Gregory acquisition. South Korea, with constant currency net sales up 12.8% year-on-year, continued to experience robust sales growth driven by American Tourister and Samsonite Red, while India and Hong Kong posted healthy constant currency net sales gains of 19.9% and 12.2%, respectively.

The Group’s net sales in North America, which includes the United States and Canada, increased by 22.4% to US$761.3 million for the year ended December 31, 2014 compared to the previous year. Excluding foreign currency effects, net sales increased by 22.9%. The Group’s continued focus on marketing and selling products designed to appeal to North American consumers, as well as the addition of the Speck and Gregory brands, contributed to the net sales growth in the region. Excluding net sales attributable to Speck and Gregory, net sales increased by 6.9%, or 7.3% on a constant currency basis. Net sales across both the Samsonite and American Tourister brands, as well as across the travel and casual categories, all recorded solid year-on-year constant currency growth, while the business and accessories categories performed particularly well on the back of the Speck acquisition.

The Group’s net sales in Europe increased by 8.3% to US$557.9 million for the year ended December 31, 2014 compared to the previous year. Excluding foreign currency effects, net sales for the European region increased by 10.4%. Strong local currency sales growth was achieved in several markets due to the positive sell-through of new product introductions, including new product lines manufactured using the Curv material and other lines of polypropylene suitcases, as demand for hardside luggage continued to grow in the region. Germany, the Group’s leading market in Europe representing 14.7% of total regional net sales, achieved 10.6% constant currency sales growth during the year. The United Kingdom also posted strong growth, with constant currency net sales increasing by 12.2% year-on-year. The Group’s business in Italy and Spain continued to show signs of improvement with constant currency net sales growth of 12.3% and 11.3%, respectively. Excluding foreign currency effects, net sales in France increased by 13.2% year-on-year assisted by the Lipault acquisition. The Group continued to penetrate the emerging markets of Turkey and South Africa with year-on-year constant currency net sales growth of 34.9% and 25.5%, respectively. The Group’s business in Russia was negatively impacted by the economic uncertainty and devaluation of the Russian Ruble, but still generated constant currency net sales growth of 5.7% year-on-year.

In Latin America, net sales increased by 5.7% to US$130.6 million for the year ended December 31, 2014 compared to the previous year. Excluding foreign currency effects, net sales increased by 15.7%. Chile and Mexico accounted for 45.1% and 30.5% of the region’s net sales, respectively. Chile recorded year-on-year net sales growth of 8.1%, excluding foreign currency effects, due in large part to the recently launched women’s handbag brand Secret. US Dollar reported net sales for Chile decreased by 5.9% due to the negative impact of foreign exchange rates. Excluding foreign currency effects, Mexico recorded a net sales increase of 16.3%, while Brazil posted year-on-year constant currency net sales growth of 105.0% mainly due to the direct import and sales model implemented during 2013. Excluding net sales attributable to Argentina, which continued to be negatively impacted by import restrictions imposed by the local government, net sales for the Latin American region increased by 20.0% on a constant currency basis.

Mr. Tainwala said, “2014 saw considerable growth once again coming from North America and Asia, and we continued to see positive progress in Europe, particularly Italy and Spain, which have both suffered considerably in the past few years due to the Eurozone crisis. As recent events have demonstrated, global economies continue to be turbulent; however the broad geographical spread of our operations as well as our multi-brand, multi-category and multi-channel model have enabled us to weather the many external forces that can buffet individual markets.”

Table 3: Net Sales by Region


Year ended

December 31, 2014


Year ended

December 31, 2013


Percentage change

2014 vs. 2013

Percentage change

2014 vs. 2013

Excl. Foreign Currency Effects






North America










Latin America





Net Sales by Product Category

Net sales in the travel category, the Group’s traditional area of strength, grew by 10.9% to US$1,654.4 million, excluding foreign currency effects, delivering 44.3% of the Group’s total increase in net sales in 2014. Country-specific product designs, locally relevant marketing strategies and expanded points of sale, including e-commerce, continue to be the key factors contributing to the Group’s success in the travel category.

As a result of the Group’s strategic focus on expanding its product offering, the accessories category recorded constant currency net sales growth of 76.3% year on year, largely due to the acquisition of Speck Products. The acquisition of Speck also had a positive impact on the business product category, where net sales increased by 34.6% excluding foreign currency effects. Meanwhile, net sales in the casual product category increased by 25.1% on a constant currency basis, due primarily to the success of High Sierra and Samsonite Red as well as the acquisition of Gregory.

Mr. Tainwala added, “Our share of travel has reduced from 74.4% of total net sales in 2013 to 70.4% in 2014, while that of non-travel has grown from 25.6% to 29.6% during the same period. This demonstrates the progress we have made in a short time to diversify our brand and product portfolio. Over the next five years, we aim to increase the contribution of our non-travel brands to around 50% of total net sales.”

Table 4: Net Sales by Product Category

Product Category

Year ended

December 31, 2014


Year ended

December 31, 2013


Percentage change

2014 vs. 2013

Percentage change

2014 vs. 2013

Excl. Foreign Currency























As at December 31, 2014, the wholesale and retail channels represented 79.4% and 20.2%, respectively, of the Group’s net sales. Excluding foreign currency effects, net sales in the wholesale channel increased year-on-year by 17.2%, while net sales in the retail channel increased by 18.3%. On a same store, constant currency basis, net sales in the retail channel increased by 7.9%. For the year ended December 31, 2014, approximately 6.6% of the Group’s net sales were derived from its direct-to-consumer e-commerce business and net sales to e-tailers, versus 5.6% for the previous year.

The Group expanded its points of sale by approximately 3,600 during the year to a total of over 49,000 points of sale in over 100 countries worldwide as of December 31, 2014. Over 300 points of sale were added in Asia during 2014, including 41 net new company-operated retail locations, bringing the total to more than 7,200 points of sale in the region as at December 31, 2014.

Mr. Tainwala noted, “2014 saw Samsonite pushing for a more balanced channel mix. We are integrating both online and offline distribution to create an omni-channel presence that will strengthen our engagement with consumers, increase visibility for our products and drive sales. Given the explosive growth in online retail, we believe e-commerce will be a new driver of profitable growth for our business, and will be the way in which many of our newer and younger customers experience our brands. As for brick-and-mortar, we are aggressively expanding our own retail footprint around the world, including in airports under the Rolling Luggage name as well as through opening multi-brand bag and luggage specialty stores under the J.S. Trunk & Co. name. We believe an omni-channel model has the potential to grow the proportion of retail sales from around 20% of our net sales in 2014 to perhaps as much as 50% over the medium term.”


The Group spent US$144.7 million, or 6.2% of net sales, on marketing in 2014, an increase of 12.0% compared to 2013, reflecting its ongoing commitment to advertise and promote its brands and products to support sales growth worldwide. The Group continued to employ targeted and focused advertising and promotional campaigns and the Group believes the success of these campaigns is evident in its net sales growth outpacing the industry in all regions.


Looking ahead to 2015, the Group’s existing growth strategy will continue to maintain its course with the objective of increasing shareholder value through sustainable revenue and earnings growth.

In particular, Samsonite will:

  • Continue to gain market share by leveraging the strength of the Group’s diverse portfolio of brands, which include Samsonite, American Tourister, Hartmann, High Sierra, Gregory, Speck and Lipault, across all of its markets;
  • Allocate more resources to increase the Group’s direct-to-consumer sales, including e-commerce, retail and omni-channel, in proportion to net sales;
  • Allocate more resources to the markets in Latin America where the Group is less represented and has the potential to gain market share;
  • Allocate more resources to the Hartmann brand to increase sales and gain market share worldwide;
  • Focus on further integrating Speck Products, Lipault and Gregory into the Group’s existing business and continue to realize anticipated synergies in sourcing, systems and back-office support functions;
  • Continually improve the efficiency and effectiveness of the Group’s supply chain and global distribution network; and
  • Continually evaluate acquisition opportunities that have a compelling strategic fit, leveraging the Group’s strong management team and balance sheet capacity.

About Samsonite

Samsonite International S.A. (together with its consolidated subsidiaries, the “Group”) is the world’s largest travel luggage company, with a heritage dating back more than 100 years. The Group is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices throughout the world, primarily under the Samsonite®, American Tourister®, Hartmann®, High Sierra®, Gregory®, Speck® and Lipault® brand names and other owned and licensed brand names. The Group’s core brand, Samsonite, is one of the most well-known travel luggage brands in the world.

For more information, please contact:

Samsonite International S.A.

William Yue

Tel: +852-2422-2611

Fax: +852-2480-1808


Artemis Associates

Vanita Sehgal

Jonathan Yang

Tel: +852-2861-3227

Tel: +852-2861-3234

Mob: +852-9103-4626

Mob: +852-6373-6676


Email: jonathan.yang

Europe: Newgate Communications

Jonathan Clare

Clotilde Gros

Georgia Lewis

Tel: +44-2076-806-500

Tel: +44-207-680-6522

Tel: +44-207-680-6528

Mob: +44-7899-790-749

Mob: +44-7718-619-905


This announcement contains forward-looking statements. All statements other than statements of historical fact contained in this announcement, including, without limitation, the discussions of the Group’s business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources, the future development of the Group’s industry and the future development of the general economy of the Group’s key markets and any statements preceded by, followed by or that include words and expressions such as “expect”, “seek”, “believe”, “plan”, “intend”, “estimate”, “project”, “anticipate”, “may”, “will”, “would” and “could” or similar words or statements, as they relate to the Group or its management, are intended to identify forward-looking statements.

These statements are subject to certain known and unknown risks, uncertainties and assumptions, which may cause the Group’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking information.

Subject to the requirements of applicable laws, rules and regulations, the Group does not have any and undertakes no obligation to update or otherwise revise the forward-looking statements in this announcement, whether as a result of new information, future events or developments or otherwise. In this announcement, statements of or references to the Group’s intentions are made as of the date of this announcement. Any such intentions may change in light of future developments. All forward-looking statements contained in this announcement are qualified by reference to the cautionary statements set out above.

Photo –

Feiyu Technology Announces 2014 Annual Results

Revenue and Gross Profit Surged 133.8% and 114.5% Respectively

Mobile Game Business Grew Significantly

HONG KONG, March 16, 2015 /PRNewswire/ —

Financial Highlights

For the year ended 31 December










Gross profit




Profit before tax




Profit for the year attributable to owners of the parent




Adjusted net profit attributable to owners of the parent (unaudited) (1)




(1) The Company defines adjusted net profit attributable to owners of the parent as net income or loss attributable to owners of the parent excluding share-based compensation, listing fees in connection with the global offering completed in 2014 and amortization of intangible assets relating to the acquisition of Kailuo Tianxia on 31 December 2013.

Feiyu Technology International Company Ltd. (“Feiyu Technology” or the “Company”; together with its subsidiaries, the “Group”) (stock code: 1022), a reputable developer and operator of mobile games and web games, today announced its audited annual results for the year ended 31 December 2014 (the “year under review”).

During the year under review, the Group recorded revenue of approximately RMB339.1 million, representing an increase of approximately 133.8% compared with same period last year. Revenue from the game operation segment increased by approximately 135.1% to approximately RMB316.9 million from last year. The contribution of mobile games to total revenue of the Group rose from approximately 39.6% in 2013 to approximately 77.9% in 2014, reaching RMB264.2 million. The gross profit for the year under review was approximately RMB296.8 million, increased significantly for 114.5% compared to approximately RMB138.3 million last year. Profit for the year attributable to owners of the parent increased 124% from approximately RMB52.6 million for the year ended 31 December 2013 to approximately RMB117.9 million for the year ended 31 December 2014. Adjusted net profit attributable to owners of the parent increased approximately 127.9% from approximately RMB81.4 million for the year ended 31 December 2013 to approximately RMB185.59 million for the year ended 31 December 2014.

Mr. Yao Jianjun, Chief Executive Officer, Chairman of the Board of Directors and Co-founder of Feiyu Technology said, “2014 was a remarkable year for the Group. Leveraging on our strong game development and operation team, our established proprietary game development and operation infrastructure, and our broad game player base, the Group has made a successful transition from a web game developer to a mobile game developer. The contribution of mobile game business to the total revenue has increased significantly. In addition, the Company was successfully listed on the Main Board of the Hong Kong Stock Exchange on 5 December 2014, marking a milestone for the Group in improving its capital strength, corporate governance as well as enhancing its competitive edge, laying a solid foundation for the Group’s future development.”

As of 31 December 2014, the game portfolio of the Group included five mobile games and two web games, which are all self-developed games. The five mobile games are “Shen Xian Dao”, “Carrot Fantasy”, “Carrot Fantasy 2”, “Jiong Xi You” and “San Guo Zhi Ren”. The two web games are “Shen Xian Dao” and “Da Hua Shen Xian”. The key titles of the Group have not only performed well financially, but have also received broad industry recognition. For example, “Jiong Xi You” has received the Golden Plume Award 2014 for “The Best Original Mobile Game” while “Carrot Fantasy 2” has received the Golden Plume Award 2014 for “The Most Anticipated Single Player Mobile Game”, Baidu Award 2014 for “The Most Popular Single Player Game” and 2014 “Top Ten Most Popular Original Games” (China Gaming Industry Gaming Conference). One of the pipeline games, “Ba Qin”, which was in beta-testing has received the Golden Plume Award 2014 for “The Most Anticipated Web Game”. “San Guo Zhi Ren” has received GameLook Award for “The Best Annual Mobile Game”.

According to App Annie’s daily analysis of Apple Inc.’s App Store rankings, in 2014, “Jiong Xi You” ranked among the top 20 daily adventure games in terms of gross billings in China for 333 days and “Luan Shi Zhi” Ren 2 (now titled “San Guo Zhi Ren” and a game exclusively distributed on Tencent platforms) ranked among the top 20 daily action games in terms of gross billings in China for 158 days. Furthermore, after the iOS version of “San Guo Zhi Ren” was launched on Tencent platforms on 19 October 2014, for the period from 22 October 2014 to 31 December 2014, based on App Annie’s daily analysis of Apple Inc.’s App Store rankings, it ranked the first in terms of gross billings in China for 31 days and ranked second for 21 days.

Driven by the success of games and strategic focus that the Group placed on its mobile game business, the active player base of the Group continued to experience significant growth in 2014.

As of 31 December 2014, RPG mobile games and web games of the Group had approximately 191.7 million cumulative registered users, with approximately 161.3 million users for web games and approximately 30.4 million users for mobile games; and casual mobile games had approximately 233.8 million cumulative activated downloads. For the month of December 2014, RPG mobile games and web games of the Group had 5.0 million monthly active users (MAUs), with approximately 1.2 million MAUs for web games and approximately 3.8 million MAUs for mobile games; and casual mobile games had approximately 15.6 million MAUs. The average monthly paying users (MPUs) for mobile RPG games has surged to approximately 176,000 in 2014 from approximately 34,000 in 2013.

During the year of 2015, the Group plans to launch approximately eight to nine new mobile games in 2015, including games under the “Carrot Fantasy” series, “Shen Xian Dao” series and “Jiong Xi You” series.

Commenting on the Group’s future growth, Mr. Yao Jianjun said, “The year of 2015 will be a critical year presenting both challenges and opportunities for Feiyu Technology. According to iResearch, the mobile game market has become the main growth driver of the online gaming industry in China. The mobile games market will account for an increasing percentage of the overall online gaming market in future. Feiyu Technology will capture market opportunities and continue to benefit from industrial development. We will further strengthen and expand our mobile games portfolio by developing additional high quality RPG mobile and casual mobile games and offering more mobile specific value added features to enrich game experience on mobile devices. We will also leverage our intellectual properties to extend the life cycle of our games, further enhancing player engagement through improving the design and settings of our games. We will continue to expand global user base by customizing the existing games to target overseas audiences and strengthening our relationships with major international game publishing and distribution partners, we also seek opportunities to acquire developed games and their development teams for boosting our game development capabilities and game portfolio. Feiyu Technology will endeavor to increase our market share to achieve sustainable growth and maximize returns for our shareholders.”

About Feiyu Technology International Company Ltd.(“Feiyu Technology”)

Feiyu Technology is a reputable developer and operator of mobile games and web games. It is one of the few game development companies based in the PRC that offers games in both the casual and RPG categories. The recent game portfolio of the Company includes five mobile games and two web games. Feiyu Technology’s games are available on some of the most visited game distribution and publishing platforms in China, including Baidu, Tencent platforms,,, and, enabling the Company to tap into a large and diversified player base.

For further information of Feiyu Technology, please visit

Shanghai La Chapelle Fashion Co., Ltd. Announces 2014 Annual Results

Actively Expanded Online and Offline Sales Networks To Achieve Sustainable Growth

HONG KONG, March 11, 2015 /PRNewswire/ — Shanghai La Chapelle Fashion Co., Ltd. (“La Chapelle” or the “Company”, together with its subsidiaries, the “Group”, stock code: 6116.HK), one of the largest fashion apparel companies in the PRC, is pleased to announce the audited consolidated results for the year ended 31 December 2014 (the “Year”).

Financial Highlights

For the Year Ended 31 December (RMB’Mn)



Changes (%)





Gross profit




Gross profit margin




Profit attributable to equity owners of the Company




Basic earnings per share




Proposed final dividend per share


During the Year, the Group recorded outstanding results and achieved growths in both revenue and net profit. Benefited from the expansion of retail network and growth in same store sales, the Group’s revenue recorded a substantial growth of 25.5% to approximately RMB7,814.2 million in 2014 (2013: approximately RMB6,225.1 million), while the gross profit up by 25.2% to approximately RMB5,364.5 million (2013: approximately RMB4,283.4 million). As at 31 December 2014, the number of retail points of the Group increased to 6,887 (2013: 5,384), situating at approximately 2,200 physical locations.

The gross profit of the Group in the Year was relatively stable, with a slight 0.1 percentage point decrease to 68.7% (2013: 68.8%), mainly attributable to a higher proportion of the sales of past season products in 2014 than that of 2013 and an increase in provisions for inventories. With the substantial increase in revenue and relatively stable gross profit margin, the profit attributable to equity owners of the Company increased by 23.6% to approximately RMB503.5 million in 2014 (2013: approximately RMB407.3 million). During the Year, the Group’s basic and diluted earnings per share increased by 11.4% to RMB1.27 cents (2013: 1.14 cents).

The Board proposed a final dividend of RMB0.60 per ordinary share.

Mr. Wang Yong, Executive Vice President of La Chapelle, said, “The PRC’s retail environment was adversely affected by the slowdown of GDP growth, persisting contraction in the spending momentum and structural change in the market. 2014 was a difficult year for many apparel enterprises in the industry. Nevertheless, through expanding our retail networks substantially, we achieved growths in both revenue and net profit.”

Business review

During the Year, the Group’s active expansion of retail network brought significant results growth, further consolidating La Chapelle’s leading position leading position in the mass-market ladies’ casualwear segment in the PRC. Meanwhile, the Group has adopted a series of strategies to further seize market opportunities and increase market share. For example, we continued to execute our multi-brand strategy, to optimize the retail channel management system, implemented a retail-oriented strategy, rolled out a number of new management information systems to further increase our operation efficiency, dedicated to the launch of O2O business and a partnership system. All above has paved a solid foundation for the Group’s long-term strategic development.

During the Year, our retail network expanded considerably. Among the 6,887 retail points, 47.1% were located in first-tier cities and second-tier cities and the remaining 52.9% were located in third-tier cities and fourth-tier cities; with 72.0% of the total were located in concessionaire counters whereas 28.0% were standalone retail outlet. During the Year, the Group launched a partnership system for some of the stores in December 2014, under which the staff salary would be directly linked to their sales performance. This successfully incentivized the staff and boosted same stores sales. Besides, the Group launched an online flagship store on Tmall and Suning Yigou, the well-known business-to-customer online shopping platforms in the PRC, and established a corporate mobile application platform on WeChat, a well-known messenger and social network mobile application, in the Year. Benefited from the direct marketing and interaction with customers, the Group achieved approximately RMB37.6 million of sales through its O2O channel in 2014. As a further step to implement the O2O strategy, the Group made a strategic investment in February 2015 by acquiring a controlling interest of 54.04% in Hangzhou Anshe E-Commerce Co., Ltd (well known for its brand name “QiGeGe”) to establish an operating platform, which focuses on brands and apparel products and covers both online and offline channels.

During the Year, the Group continued to execute the multi-brand strategy. The eight brands under the Group, namely La Chapelle, La Chapelle Sport, 7.Modifier, Candies, La Chapelle Homme, La Babité, La Chapelle Kids and Pote, cover ladies wear, menswear and children’s wear, which have enabled the Group to access a wider customer base and diversify the sources of revenue. In 2014, 66.5% of the Group’s revenue was generated from the sales of La Chapelle and La Chapelle Sport, mainly attributable to the longest brand history and the highest level of customer loyalty and recognition of these two brands. On the other hand, the other brands displayed a faster growth in comparison, in which their contribution of the Group’s revenue increased from approximately 26.3% in 2013 to 33.5% in 2014. In addition, in collaboration with the Group’s strategic partner Roland Berger Strategy Consultants, a new independent brand was launched based on the SPA (Specialty retailer of Private label Apparel) model. The new brand is expected to officially launch and open its first retail outlet in the first half of 2015, offering customers a wide range of apparel products including ladies wear, menswear and children’s wear at reasonable prices.

The Group also dedicated to optimize the management information system and supply chain management system so as to further enhance the operation efficiency and management capabilities. During the Year, the Group rolled out a number of new systems to enhance the management of different stages of operation. For example, the Group introduced an Order Management System (OMS) to coordinate and allocate orders from online retail channels and retail points, and upgraded the existing SAP ERP system and installed a warehouse management system (WMS) in the newly-built warehouse and logistic center in Taicang, Jiangsu Province. Moreover, the Group is also constructing two additional warehouse and logistic centres in Tianjin and Chengdu. Upon completion of the construction, the Group will possess a nationwide distribution network, which enables the Group to be more effective and efficient in distribution, providing efficient services to retail points.


As the PRC’s economy is marching into the stage of steady and healthy development, individual consumption will continue its growing pace. Looking into the future, the Group will adopt the following strategies to enhance its overall competitiveness and to increase its market share, including: 1) Continue to strategically expand its retail network and increase its penetration into the existing markets. The Group plans to expand into tier 2 and 3 cities in the PRC with rising disposable income and substantial market potential, and open more retail outlets in shopping centres and multistory flagship stores to response to the changing shopping patterns and habit of the consumers in the PRC; 2) Focus on brand building by raising the Group’s brand image and brand awareness and increasing customer’s loyalty and recognition toward La Chapelle’s brands; 3) Selectively search for acquisition and strategic alliance opportunities to complement the Group’s existing business and further solidify its market position; 4) Further improve the information system, including an upgrade on the POS system and launch of a customer relationship management (“CRM”) system for collecting and analyzing customer information in 2015; 5) Enhance O2O strategy by accelerating the establishment of online platform under its own brands, increasing its proportion of sales in order to achieve sustainable growth for the Group.

Mr. Wang Yong, Executive Vice President of La Chapelle, said, “In the future, we will focus on our products by strengthening product design and development capabilities. Moreover, we will further expand our retail network, improve supply chain management, enhance our warehousing and logistics infrastructure and optimize our information systems. After the strategic investment in QiGeGe, we will focus on building proprietary online and offline brand sales platform and strive to offer comprehensive shopping experience to customers so as to use the online platform to drive the same store sales growth in physical stores. Leveraging on our leading market position, strong product design capability, successful multi-brand strategy and independent direct sales model, La Chapelle will further expand its sales network in the PRC and increase its market share, maximizing returns for our shareholders.”

About Shanghai La Chapelle Fashion Co. Ltd.

Founded in 2001, Shanghai La Chapelle Fashion Co. Ltd. is a fast-growing multi-brand fashion group in the PRC, which designs, markets and sells apparel products with a focus on mass-market ladies’ casualwear. The Group strives to offer customers the latest fashions at competitive prices through a wide range of apparel products under 8 brands, namely La Chapelle, La Chapelle Sport, 7.Modifier, Candie’s, La Babité, La Chapelle Homme, Pote and La Chapelle Kids. The Group directly controls and operates 100% of its nationwide sales network. As at 31 December 2014, the Group’s extensive nationwide retail network comprised 6,887 retail points located in approximately 2,200 physical locations across all 31 provinces, autonomous regions and municipalities in the PRC. In August 2014, the Group launched its O2O strategy to integrate traditional physical stores with online channels.


Continued growth and market share gains underline resilience of DKSH’s business model in a challenging market environment

HONG KONG, Feb. 27, 2015 /PRNewswire/ —

  • Net sales grow by 7.1% to CHF 10.2 billion at constant exchange rates resulting in market share gains in core markets
  • Despite the more challenging than expected business environment in Thailand, Mainland China, Hong Kong and Japan, operating profit of CHF 284.1 million at constant exchange rates exceeds last year’s level
  • Stable income and net sales growth underline resilience of DKSH’s business model in highly challenging year 2014
  • Board of Directors has decided to increase long-term dividend payout ratio to 30 – 50% of profit after tax
  • Given the favorable outlook for the coming years, proposal to increase the ordinary dividend 2014 by 21% (+CHF 0.20) to CHF 1.15 per share
  • Continued dynamic net sales growth and double-digit EBIT growth expected for 2015 at constant exchange rates
  • DKSH confirms 2016 outlook

Key figures of DKSH (in CHF millions)

At constant

exchange rates¹





 Change in %


 Change in %

Net sales






Operating profit (EBIT)2






  Operating profit incl.

  gain from sale of property






Profit after tax2   






  Profit after tax incl.

  gain from sale of property






Free Cash Flow




Earnings per share (in CHF)2




  Earnings per share (in CHF)      

  incl. gain from sale of property




Ordinary dividend per share (in CHF)3




Number of employees




1 Against the backdrop of foreign exchange rate depreciations and to make operating performance more comparable, DKSH also communicates figures at constant exchange rates. For constant exchange rates, the 2014 figures have been converted at 2013 exchange rates

2 Excluding income of CHF 27.6 million from sale of property in Malaysia in 2013

3 Proposed by the Board of Directors

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, continued to grow in 2014 at constant exchange rates despite a challenging business environment and gained market share in core markets. All Business Units contributed to this performance.

Net sales grew by 7.1% at constant exchange rates to CHF 10.2 billion. Organic growth was 6.4%, while just 0.7 percentage points of net sales growth resulted from M&A activities. The depreciation of Asian currencies negatively impacted net sales by 4.4%. Reported in Swiss francs, net sales accordingly increased by 2.7% to CHF 9.8 billion.

Despite the more challenging than expected market conditions in Thailand,  operating profit before interest and taxes (EBIT) increased by 0.7% to CHF 284.1 million at constant exchange rates. Reported in Swiss francs, EBIT amounted to CHF 272.7 million. The economic implications of the challenging political situation in Thailand were more profound and enduring than expected, which led to lower demand for higher-margin luxury and lifestyle products as well as consumer goods and resulted in reduced industrial investments. The further depreciation of the Japanese yen, the political unrest in Hong Kong and the reduced demand for luxury products in Mainland China impacted business additionally.

Profit after tax reached CHF 201.3 million at constant exchange rates. Reported in Swiss francs, profit after tax was CHF 195.5 million.

Free Cash Flow in 2014 amounted to CHF 188.4 million, thereby almost reaching last year’s figure of CHF 191.8 million. As announced along with the half-year 2014 results, and to increase capital market transparency and comparability, the Free Cash Flow definition has been changed.

Against the backdrop of DKSH’s resilient business model as well as favorable outlook, the Board of Directors, in the 150th anniversary year, decided to increase the long-term dividend payout range from 25 35% to 30 50% of profit after tax.

In line with the progressive dividend policy practiced since many years, the Board of Directors will propose to the Annual General Meeting (AGM) in March 2015 an ordinary dividend of CHF 1.15 per share for the financial year 2014. The ordinary dividend thereby will be 21% higher than last year and represent a payout ratio of 38.9%.

Payment date for this dividend, if approved by the AGM, is set to start as of April 8, 2015 (record date: April 7, 2015; ex-dividend date: April 2, 2015). Dividends will be paid from reserves of capital contributions and thus be tax-exempt for Swiss-domiciled private shareholders.

DKSH continuously invested in the skills and development of its employees. At year-end 2014, DKSH employed 27,550 specialists worldwide, representing an increase of 857 people or 3.2% compared to 2013.

Confirmation of outlook 2016

Dr. Joerg Wolle, President & CEO of DKSH commented: “This year, DKSH will celebrate its 150th anniversary. The growth achieved in a highly challenging market environment reflects the ongoing attractiveness of our business model. The growth prospects for our markets and Business Units are promising. With our diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle classes, rising inner-Asian trade and increased outsourcing to specialist services providers.”

Building on this solid basis, DKSH expects a continued dynamic net sales growth and double-digit EBIT growth at constant exchange rates in 2015.

Looking into 2016, DKSH continues to project net sales of around CHF 12 billion at constant exchange rates (compound annual growth rate of 8% between 2013 and 2016). For the same period, DKSH anticipates an operating profit (EBIT) of around CHF 380 million at constant exchange rates (compound annual growth rate of 10% between 2013 and 2016), which should translate into profit after tax of some CHF 270 million at constant exchange rates.

Further information

A live webcast of today’s analyst and investor conference will be held at 1:00 p.m. CET (in English). A recording of the webcast will be available on the DKSH website. The Annual Report 2014 is available for download: Annual Report 2014

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term “Market Expansion Services” suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 750 business locations in 35 countries  720 of them in Asia — and 27,600 specialized staff, DKSH generated net sales of CHF 9.8 billion in 2014.

The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials and Technology.

In 2015, DKSH celebrates its 150th anniversary. With strong Swiss heritage, the company has a long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.