EEKA Fashion Announces 2021 Full-Year Results, Double-Digit Growth in Revenue and Profits Driven by Multi-Brand Strategy, Business News

HONG KONG, March 28, 2022 – (ACN Newswire) – EEKA Fashion Holdings Limited (Ticker: 3709.HK, “EEKA” or “the Group”) has announced its unaudited consolidated annual results for the financial year ended December 31, 2021 ( ” the period ” ). In 2021, Group revenue increased 19.3% year-on-year to RMB 6.4 billion. Gross profit was RMB 4.8 billion, an increase of 21.2% year-on-year. The gross margin rate was 74.6%. Net profit increased 28% to RMB 562 million.

Mr. Jin Ming, Founder and CEO of EEKA Fashion, said, “Based on EEKA’s multi-brand strategy, we are committed to providing high-quality products to meet our customers’ needs, to further strengthen intellectual, elegant and modern styles for women. . EEKA is focused on improving our core operational capabilities through innovative research and design, digitization of the supply chain, and membership management. Through our platform-based multi-brand strategy, we will continue to grow our business amid a positive market outlook and fuel industry innovation through our leadership position. With this, we are confident of reaching the goal of surpassing 10 billion retail sales by 2023.”

During the period, the Group recorded strong double-digit revenue growth for the eighth consecutive year, thanks to the success of its multi-brand strategy with its matrix of mid to high-end womenswear brands. The Group is the first in the market to build three 1 billion RMB retail brands. Koradior and NAERSI, two high-end brands, achieved a combined turnover of more than RMB 3.7 billion, maintaining themselves as the main contributors to the group’s turnover. NEXY.CO reached 1 billion RMB in retail sales and revenue of 872 million RMB for the first time. The youngest brand FUUNNY FEELIN targeting the mid-range market has also achieved a turnover of more than 100 million RMB, with an impressive growth rate of more than 100%.

The Group maintained its growth momentum thanks to the continuous improvement of the operations of its offline retail channels and its online e-commerce platforms. EEKA leveraged its competitive advantages in retail stores, achieving sales of nearly RMB 5 billion, accounting for about 80% of the group’s total revenue. In 2021, EEKA operated over 1,500 retail stores, with a membership base of over 3.6 million, which will help improve the group’s long-term revenue growth. During the period, e-commerce platform revenue increased by 23.6% to RMB 757 million. While the sales of Tmall and continued to grow, the EEKA Fashion Mall and Douyin channels also became key revenue drivers for the Group, each registering a growth rate of over 200% and 1,400%.

Building on the strong brand operating capabilities accumulated over more than 20 years, EEKA will continue to consolidate its advantage against the platform-based strategy through digitalization in design, production, marketing and sales. The Group is dedicated to product innovation to offer high-end fashion to its customers. At the same time, the Group launched digital projects around supply chain optimization and centralized management of member and product data to further improve overall efficiency. In 2021, EEKA actively promoted sustainability by joining “The Smart Coalition for Sustainability” with its eight women’s clothing brands. The Group also launched the “EEKA Prize” to develop young talents in China and promote innovative design for sustainable development.

Going forward, the Group will continue to strengthen its leadership position in China’s fashion industry, with a clear goal of exceeding 10 billion retail sales by 2023 and 15 billion retail sales by 2023. ‘by 2025. EEKA will further increase brand influence in the market, digitization and innovation. capabilities based on the strategic orientation of “multi-brand and multi-channel”. With the vision of “Just for its unique glamour”, the Group is committed to creating value for consumers seeking a better life, by consolidating its position as market leader in mid-range and high-end women’s apparel. range in China.

Note 1: The Group acquired respectively 65% ​​and 35% of the capital of Mondial on July 13, 2016 and November 10, 2021, which owns the “CADIDL” own brand. Mondial is a non-significant subsidiary of the Company within the meaning of the Listing Rules.
Note 2: The Group acquired the assets of SK Networks (China) Fashion Co. Ltd. (including fashion products under the “Obzee” and “O’2nd” brands) on March 9, 2017 and ended an exclusive distribution agreement in April 2020.
Note 3: The Group acquired 100% of the stake in Keen Reach, which owns its own brand
“NAERSI”, “NEXY.CO” and “NAERSILING” on July 3, 2019.

About EEKA Fashion
EEKA Fashion Holding Limited (stock code: 3709.HK) is a well-known fashion clothing group with unique brand culture concept, advanced research and development design center, strong marketing service system, logistics distribution efficient and a network management system. The company has been deeply involved in China’s high-end women’s apparel industry since its inception and was listed on the Hong Kong Main Board in 2014. The group currently owns eight own brands: Koradior, La Koradior, Koradior elsewhere, NAERSI , NAERSILING , NEXY.CO, CADIDL and FUUNNY FEELLN. Over the years, EEKA Fashion Group has been strongly committed to the internationalization of the brand. Since 2015, many of its brands have been invited to Milan Fashion Week and New York Fashion Week to show the charm of Chinese brands. The Group has always insisted that the brand is the root and the creativity is the soul, based on pursuing the lifestyle of customers and shaping the brand culture, considering the needs of customers. customers and the “Just for its unique glamour” mission, focusing on product innovation and brand communication. , and continue to lead the dress and life culture of customers.

This press release is issued by ICA Investor Relations (Asia) Limited on behalf of EEKA Fashion Holdings Limited. For any enquiries, please contact:

ICA Investor Relations (Asia) Limited
Tel: +86 (21) 8028-6033
Email: [email protected]

Copyright 2022 ACN Newswire. All rights reserved.