Further expansion is planned in China and international markets in coming months.
C.banner International Holdings Limited has announced its interim results for the six months ending 30th June 2016. During this period, the group’s total revenue increased by 6.1% to RMB 1,502.9 million, although Hamleys suffered a seasonal loss of RMB 20.3 million. Revenue from retail of toys amounted to RMB 241.0 million, accounting for 16.0% of the group’s total revenue. However, the group has stated that as the profit contributed by Hamleys will mainly be derived from the second half of the year, the annual performance is on track to meet expectations.
Mr. Chen Yixi, chairman of C.banner, commented: “Although the global economy and retail industry remained weak in the first half of 2016, China still recorded a GDP growth of 6.7% thanks to a wide range of measures and policies introduced by the central government, including “One Belt, One Road.” This initiative has widened the business horizon of Chinese enterprises by encouraging them to invest overseas. To gain a head start over our competitors, we acquired the Hamleys brand last year, which is one of the most famous toys brand in the world. We are planning to open its first Hamleys flagship store in Nanjing this October and expect the addition of Hamleys brand will provide a great boost to enhance the Company’s overall brand value, image and exposure.”
Hamleys, which operates in 22 countries around the world, recorded 14% growth in its international business in the first half of 2016, when it continued its global expansion programme by opening 11 stores in countries such as India, South Africa, Egypt, Czech Republic and Jordan. A further 29 stores are scheduled to be launched in the second half year. As the majority of these stores are operated by international franchise partners, no capital outlay is required for the expansion of retail networks. In addition, C.banner has established a team in China in order to develop the Hamleys business and take advantage of the market opportunity arising from the second-child policy recently introduced in China. The group is planning to open Hamleys shopping malls in Beijing, Shanghai and Xuzhou next year. Mr Chen commented: “ We will expand Hamleys’ business in China through a shared service platform. We will co-operate with large-scale domestic department stores and shopping malls to build Hamleys-themed shopping malls and expand into tier-1 cities, to generate a synergistic effect with our existing business.”