• FY profit slumps 32.6% to to CNY982.3m
  • Revenue down 11.7% to CNY8.24bn
  • Company will streamline business
Bosideng plans to "streamline its organisational structure" and "refine its professional management"

Bosideng plans to "streamline its organisational structure" and "refine its professional management"

China's largest down apparel company, Bosideng International Holdings Ltd, has said it will streamline its organisational structure after reporting a 32.6% slump in annual pre-tax profit.

Pre-tax profit slumped to CNY982.3m (US$158.3m) for the year to 31 March, compared to CNY1.46bn in the same period a year ago.

Revenue fell 11.7% to CNY8.24bn from CNY9.32bn in the prior year, weighed down by an unfavourable macroeconomic environment and reduced domestic demand coupled with the higher temperatures in autumn and winter last year.

The branded down apparel business - which includes Bosideng, Snow Flying, Combo, and Bengen - saw revenue decline 14.6% to CNY6.06bn, while from the non-down apparel business posted a 1.9% increase to CNY1.30bn.

Looking ahead, chairman Gao Dekang said China's economic growth is expected to continue to slow in the short term. "In addition, under unfavourable factors such as high inventory and excessive expansion in earlier stage within the apparel industry, the prospect of retail market seemed gloomy."

He added that the company will "streamline its organisational structure" and "refine its professional management" to raise operating efficiency and improve its competitiveness.

For the down apparel business, Bosideng will reshape each brand, streamline the retail network, strengthen its inventory control to quickly respond to sales performance at its stores, establish a shared CRM and VIP management system, and explore the us of mobile devices to promote online-offline interaction.

In terms of non-down apparel business, the group plans to "terminate apparel brands with poor profitability", including Bosideng Ricci ladies' wear and a small down apparel brand Slim to focus on its core business.

Bosideng said it will also "emphasise precise division of professional management", with less hierarchy, and streamline unnecessary positions and procedures to save manpower.