Bosideng pays 5 million years to excavate Daphne Goldcome as CEO

Bosideng released an announcement yesterday evening that the company’s current chairman and chief executive officer, Gao Dekang, will no longer serve as the chief executive of Bosideng on May 15, 2014, and the former Chief Strategy Officer of Daphne Liang Xuhui will take over his role as chief executive of Bosideng. It is reported that Liang Xuhui signed a contract with Bosideng for three years and its annual salary is as high as 5 million yuan.

For this personnel change, Bosideng said that this mainly takes into account the growing scale of Bosideng, the need to introduce more professional personnel to conduct fine division of labor and management, and lay a more solid foundation for long-term business development. "It is also effective in improving the company's corporate governance standards."

According to NetEase Finance, Liang Xuhui served as the director of children's operations of children's products group. In March 2011, Liang Xuhui announced that he had resigned in just four months after the good boy was listed. In January 2012, Liang Xuhui joined the Daphne Group as chief strategy officer, responsible for the strategic development of Daphne Group and the decision-making of major operational projects.

Some analysts pointed out to NetEase. Bosideng digged Daphne Liang Xuhui at this time. Mainly because of the sharp decline in the results of Bosideng in recent years. At the end of March this year, Bosideng issued a profit warning last year. According to the announcement, Bosideng expects its revenue in 2013 fiscal year ending on March 31, 2014 to show a “low double-digit” decline compared to the same period of last year. Bosideng explained that the main reason for the sharp decline in revenue is that “in most parts of China last winter, the temperature was higher than normal winter”. In addition, Bosideng also stated that due to continuous increase in operating expenses, the company's net profit decline in 2013 will be higher than its revenue decline.

The Bosideng 2013 fiscal year interim results show that, as of the first half of the fiscal year ended September 30, 2013, Bosideng revenue fell by 8.8% to 2.809 billion yuan; operating profit income dropped by 19.67% year-on-year to 343 million yuan. In Bosideng’s various down apparel brands, Bosideng, Xuezhongfei, Bingjie, Comber, and other down apparel brand sales revenue for the first half of fiscal year ended September 30, 2013 were 1.008 billion yuan, 281 million yuan, 165 million yuan, 2.02 respectively. Billion yuan and 0.46 billion yuan. Excluding Bosideng and Compro brand sales revenues, which fell slightly compared to the same period of last year, Xuefeifei, Bingjie, and other down apparel brands respectively fell 11%, 26%, and 29% over the same period last year.

In addition, the Bosideng men's apparel business, which has been highly hoped for by the Bosideng Group, continues to be sluggish and its performance is still not satisfactory. Its 2012 annual report shows that Bosideng menswear sales were 480 million yuan, a year-on-year drop of 30%. Bosideng men’s clothing had previously set a goal of setting up 1,000 stores, but the plan has now run aground. During the first half of fiscal year ended September 30, 2013, the number of Bosideng menswear stores again reduced by a net of 92 stores to 663 stores.

The Bosideng men's wear is not just a store, but is also the "main theme" of Bosideng Group brands. According to the data, during the first half of fiscal year ended September 30, 2013, Bosideng Group reduced its net store by 503, including 344 down-net stores and 159 non-down-store businesses. Bosideng and Compronet respectively reduced the number of stores by 256 and 306, Bosideng Menswear, Jesse, and Mogao had a net decrease of 92 stores, 27 stores and 41 stores respectively. Bosideng’s annual report for the fiscal year shows that Bosideng has 4,615 new stores to 13,009 within a year.