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Naibu Global Intl Co (NBU)

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Tuesday 05 August, 2014

Naibu Global Intl Co

Trading Update

RNS Number : 2681O
Naibu Global International Co PLC
05 August 2014
 



 

 

Press Release

5 August 2014

 

 

Naibu Global International Company Plc

 

("Naibu" or the "Company")

 

Trading Update

 

The Board of Naibu Global International Company Plc (AIM:NBU), a leading Chinese manufacturer and supplier of branded sportswear, is pleased to provide the following trading update.

 

Trading H1 2014

 

The Company's unaudited sales revenue grew to RMB 1,030 million for the period ended 30 June 2014, an increase of 8.4% compared with the same period in 2013.  Revenue from the sale of shoes accounted for 53.6% (RMB 552 million), the sale of clothing for 44.2% (RMB 455 million) and the sale of accessories represented the remaining 2.2% of revenues (RMB 23 million).

 

Autumnand Winter SalesFair

 

During May 2014, the Company held its seasonal sales fair with distributors to showcase its 2014 autumn and winter collection. The Board is pleased to report that the value of sales orders taken at this fair were 5.0% higher compared to the equivalent fair held in the previous year.

 

Production Facilities

 

Quangang

 

As a result of sudden and continuing labour shortages which have driven labour costs up in the coastal regions, the Company has been unsuccessful in recruiting sufficient workers for 6 production lines to become operational by August 2014. This shortage of labour is expected to continue for the foreseeable future and consequently, the Company has taken the decision to abandon the commencement of production at Quangang.  The Company is currently in negotiations to rent out the facility and will at the same time commence marketing the property for sale. 

 

In the interim, the company has made arrangements with its OEM suppliers to supply the shoes which it would have otherwise have produced at Quangang and therefore, there will not be any disruption to production.  There will, however, be a small impact on the Company's results.

 

Dazhu

 

In respect of the land use rights of the Naibu Industrial Zone in Dazhu county, Sichuan Province, the Group paid a second installment of RMB 30 million in May, and the remaining RMB 22 million is expected to be paid upon the grant of the land use rights certificate.

 

The land is in the process of being prepared by the local government.  It is expected that this work will be completed in October 2014 and the facility to be operational in Q2 2016.

 

Mr. Lin Huoyan said, "Although the Company has encountered some difficulties with putting the Quangang factory into operation due to a sudden change in the labour market in the coastal regions, given the revenue achieved in H1 2014 and the orders that have been received for the remainder of the year, I am confident that my management team has the capability to overcome the setback at Quangang and the Group is ready to accept the challenge and to achieve sustainable development going forward."

 

- Ends -

For further information:

Naibu Global International Company Plc


Huoyan Lin, Executive Chairman

Tel: +44 (0) 20 7398 7702

Li Zhen, Chief Financial Officer

www.naibu.com

 

Daniel Stewart & Company Plc

Tel: +44 (0) 20 7776 6550

Paul Shackleton / Martin Lampshire

www.danielstewart.co.uk

 

Media enquiries:

Abchurch


Henry Harrison-Topham / Quincy Allan

Tel: +44 (0) 20 7398 7710

[email protected]

www.abchurch-group.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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