Extraordinary China'S 20-Year Net Profit Rose 42.9%, Thanks To The Sale Of Li Ning And The Acquisition Of Bao Shilong

On the evening of March 22, extraordinary China announced its 2020 results. From the announcement, thanks to the acquisition of 66.5% shares of Bao Shilong last year, a number of core data of extraordinary China recorded significant growth.

During the reporting period, the comprehensive income of Fanfu China increased by 31.0% to HK $819 million. The net profit attributable to equity holders was HK $1192.4 million, an increase of HK $358 million (about 42.9%) over the same period of last year. The substantial increase was due to the sale of part of the equity of Li Ning, an associated company, and HK $245.3 million from the acquisition of baoshilong through negotiation During the year, it was partly offset by a decrease of HK $75.7 million in the profits of associated companies and joint ventures. The gross profit increased by 168.5% to HK $330.8 million, which was mainly contributed by the acquisition of sports and leisure consumer goods business of baoshilong group.

In 2020, fanfa China will continue to develop two major business strategies: operating "sports and leisure consumer goods" and continuing to maintain "sports experience". In 2020, the two major business performances are different.

"Sports and leisure consumer goods" business income increased significantly to HK $439 million, mainly due to the acquisition of baoshilong group in late July 2020, but the division recorded an operating loss of HK $93.5 million. During the period, the Group officially launched a new series of clothing and footwear of "LNG" brand. Through different online marketing platforms, the "LNG" brand successfully opened a flash store in Hangzhou in the fourth quarter, making its debut in the offline market. The first and second physical stores in China also landed in Chongqing and Shanghai in January and February 2021, respectively.

The "sports experience" business recorded revenue of HK $381.1 million, a decrease of HK $245 million, due to the closure of sports parks, sports centres and skating rinks from February to March 2020 and the postponement and cancellation of sports events due to the covid-19 epidemic, resulting in an operating loss of HK $18.3 million. During the reporting period, Fanfu operates and manages seven Li Ning Sports Parks and Li Ning Sports Centers. Among them, Tianjin Xiqing District Li Ning Sports Center and Hefei Nanyan Lake Li Ning Sports Park were officially put into operation in 2020, and the four sports destinations under construction are expected to be completed successively from 2021 to 2022. In addition, fanciful China currently operates 12 skating rinks in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou, Suzhou, Wuhan and Haikou. Among them, the second store in Shanghai, impression city store, opened on August 25, 2020, has developed well in a short period of time.

In 2021, Feifan China will make every effort to develop the shoe and clothing brand business of Bao Shilong, LNG and Clarks, and will concentrate its main resources on the core business of "multi brand shoes and clothing". Therefore, the group will further expand its brand operation team, set up professional online and offline pipeline operation departments, and invest in competitive supply chain business.

At the same time, fanciful China will continue to actively promote the potential project acquisition opportunities of various types of domestic and international consumer goods brands. On March 15, 2021, extraordinary China announced that it would acquire most of Clark's interests. Clarks brand has a history of nearly 200 years, and its main market covers Britain, America and many different countries in the world, including greater China. After the completion of the transaction, the territory of special China in sports and leisure consumer goods is further expanded.