Win Hanverky is projecting a 25 percent increase in production this year to satisfy the demand from its big corporate clients. At the same time, the company plans to add more points of sale, particularly in second-tier and third-tier cities throughout Mainland China.
Win Hanverky opened 240 new stores in China in 2007, bringing the total door count up to 1,280. The group also expanded its production capacity from 2.6 million to 3.4 million pieces per month. They were all made in China, as the company closed its underperforming factory in the Philippines.
In 2007 the Chinese company posted an 11.4 percent higher net profit of HK290.3 million (€27.48m-US$42.9m) and a 13.4 percent higher operating profit of HK400.1 million on 34 percent higher consolidated sales of HK3,322.4 million (€272.6m-$426.0m). The gross margin dropped to 32.3 percent of sales from 34.7 percent the year before, mainly because of the appreciation of the yuan and lower margins in the activewear and outerwear manufacturing business.
The revenues from this business decreased by 15 percent to HK$542.5 million (€44.5m-$69.6m). Revenues from the manufacturing of other types of sportswear instead grew by 47 percent to HK$2.11 billion (€173.2m-$270.7m), while revenues from wholesale distribution and retailing went up by 61 percent to HK$669.9 million (€55m-$86m). Increased operating profit in the first two divisions was significantly offset by a decrease in operating profit in the last one.
Geographically, a 14 percent decline in exports to the USA, down to HK$522 million (€42.8m-$67.0m), was made up by a 38 percent increase to Europe, up to HK$1.36 billion (€111.6m-$174.5m), and by a 74 percent increase in sales to China, where they rose to HK$829.5 million (€68.1m-$106.4m).
