Camkids Group PLC Trading update (1426X)
November 17 2014 - 2:01AM
UK Regulatory
TIDMCAMK
RNS Number : 1426X
Camkids Group PLC
17 November 2014
17 November 2014
Camkids Group plc
("Camkids", the "Company" or the "Group")
Trading update
Camkids Group plc (AIM: CAMK), a leading Chinese designer,
manufacturer and distributor of branded outdoor clothing, footwear
and equipment for children and teenagers, announces the following
trading update.
The Board of Camkids confirms that the Group is trading in line
with market expectations for 2014. Camkids has recently launched a
range of cycling products by sponsoring a cycling event in its home
city of Jinjiang. A news report of the event can be accessed at
http://v.youku.com/v_show/id_XODIzNTQxMTgw.html.
Camkids reports that online sales from its Chinese Double 11
day, a national online shopping carnival which took place on 11
November 2014, were encouraging with Camkids being ranked 3(rd) in
the children's outdoor sales after Anta and Nike Kids. Double 11
day draws in millions of Chinese shoppers looking for discounts,
who typically spend significant sums on China's e-commerce sites
during that one day of discounts. Whilst still in its infancy, the
Board is confident that its online business has significant growth
potential.
As announced on 29 September 2014, the Group held its sales fair
in Jinjiang City on 4 August 2014. The Board reports that feedback
from the Group's distributors on the design of its product range
has been extremely encouraging. Notwithstanding this, the Group's
distributors are adopting a cautious approach towards 2015 given
the macro-economic backdrop in China and the reduction in consumer
spending. At the same time, the Company's strategy of launching in
Tier 3 and Tier 4 cities and the various transitional changes that
this entails as the Company develops a mid-end range in order to
boost sales in these new cities has also affected the value of the
Group's current order book. These factors, combined with the fact
that the final value of the Group's spring/summer order book is
approximately 13 per cent. behind the same period last year, lead
the Board to adopt a conservative stance towards its prospects for
2015. In view of this, the Board is currently reviewing the Group's
planned cost base for 2015 with a view to maintaining the Group's
net profit as much as possible.
Despite the above factors, the Company has been able to ensure
that its healthy gross profit margin is maintained above 35 per
cent. through simplifying its designs and controlling its
production costs. On a more medium-term basis, the Board believes
that the Group's prospects remain solid and it views the future
with confidence.
The Group was encouraged by the recent meetings its Executive
Directors held with certain institutional and other investors in
London and remains committed to active engagement with its
shareholders.
- Ends -
For further information:
Camkids Group plc
Zhang Congming, Executive Tel: +44 (0) 20
Chairman 7398 7714
Ng Pei Eng, Chief Finance www.camkids-ir.com
Officer
Allenby Capital Limited
Alex Price / James Reeve Tel: +44 (0) 20
/ Nick Athanas 3328 5656
a.price@allenbycapital.com www.allenbycapital.com
Media enquiries:
Abchurch Communications
Limited
Henry Harrison-Topham Tel: +44 (0) 20 7398
/ Canace Wong 7714
camkids@abchurch-group.com www.abchurch-group.com
Notes to editors
Camkids is a leading Chinese designer, manufacturer and
distributor of branded outdoor clothing, footwear and equipment for
children and teenagers.
Based in Fujian province in China, the Group focuses on
children's sportswear for outdoor activities, combining
functionality and innovation. The products are mid-range price
based, targeting mid and high range markets within China.
The three main product areas are:
-- Camkids outdoor clothing - all weather jackets, waterproof
trousers, shirts, tops and T-shirts, woollen sweaters, jeans,
trousers shorts and skirts;
-- Camkids footwear - hiking boots, outdoor leisure footwear,
flip-flops, sandals and boots
-- Camkids equipment and accessories - telescopes, backpacks,
technical packs, tents, sleeping bags, headgear, caps, kettles,
headlights and torches.
The Group designs its entire product range and manufactures the
majority of its footwear. Outdoor apparel and accessories are
currently manufactured by third party OEMs.
Camkids' primary route to market for the sale of its products is
through its network of distributors. The Group has established an
extensive distribution network across 29 provinces, 4
municipalities and 5 autonomous regions within the PRC and is
successfully expanding its presence in tier 3 and tier 4 cities.
The Group has 17 authorised distributors operating over 1,336
franchised retail outlets, and continues to develop its e-commerce
business and currently has over 200 product lines on offer through
its existing online partners of Taobao and JD.com.
Camkids has received a number of prestigious awards. In
September 2014 it was announced that Camkids had been included in
the rankings as one of "The Top 500 Asia Brands". In addition to
this prestigious award, the Group's Chairman has also been honoured
as one of the "Top ten new brand creators in Chinese industry".
For more information please visit www.camkids-ir.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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