Shoe And Clothing Enterprise Li Feng Orders Have Been Reached To Christmas Schedule.

Li Feng (0494) announced its interim results in 08 years, net profit rose 18% to 1 billion 238 million yuan, earnings per share 36 cents, sending medium-term interest 24 cents.

Feng Guoguan, managing director of Li Feng, said that the order of the group has now reached the Christmas schedule, and that the business growth in the second half of the year will be similar to that in the first half of the year, or about 25%.

Medium term net profit rose 18% to 1 billion 238 million Feng Guoguan said at a press conference yesterday that although the US economy is slowing down, it mainly affects sales of real estate, automobiles and large household electrical appliances, while the group's products are mainly clothing, footwear and so on.

He said that Li would increase its market share by increasing its market share. It also points out that the inventory of American enterprises is very low. If sales are ideal in 8-9 months, it will be urgent to replenish goods, which will help the mainland and Asian economies.

Feng Guoguan is confident that by the end of 2010, the group's turnover and core business profits can reach US $20 billion and US $1 billion respectively.

He said future growth will be driven mainly by natural growth and acquisitions.

In terms of acquisitions, mainly small acquisitions, and a reserve of $100 million has been prepared, and large acquisitions may be financing in the market. Apart from consideration of rights issue, bonds may also be issued.

As for WAL-MART, WAL-MART will give the procurement business to Li Feng, but there is no positive answer from WAL-MART.

During the period, the apparel and non apparel consumer goods business accounted for 70% and 30% of the turnover respectively, while the turnover and operating profit of the garments increased by 24% and 28% respectively, reflecting the positive contribution of last year's acquisition and outsourcing agreements.

The turnover and operating profit of non garment consumer goods business increased by 29% and 43% respectively.

This year, the 6 acquisition cost US $450 million. At the same time, the group has made 6 acquisitions this year. The total cost is about US $450 million. One of them is a large acquisition. The purchase target is Van Zeeland, Inc, the middle class and department store handbag brand importer, and the purchase price is US $330 million.

In outsourcing the procurement business, the group reached an agreement with 5 enterprises to incorporate its purchasing offices into Li Feng, which includes Toys R & D, Sanrio, Timberland and Kellwood.