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    China Daily Website

    Bosideng feels chill of declining profits

    Updated: 2013-06-27 18:21
    By LI WOKE ( chinadaily.com.cn)

    The net profit of Chinese clothing firm Bosideng International Holdings Ltd plunged 24.9 percent year-on-year in 2012.

    As the world’s largest down jacket makers, Bosideng said on Wednesday that its sales revenue was 9.32 billion yuan ($1.52 billion) last year, a year-on-year increase of 11.3 percent. But its inventory rose to 1.97 billion yuan, a year-on-year jump of 40.89 percent.

    China’s garment makers have suffered from years of high inventory problems.

    According to Zhejiang-based Hexin Flush Network Services Ltd, the inventories of 90 percent of the 22 listed Chinese garment makers have been increasing, and operating incomes have consequently declined.

    Bosideng is a pioneer of Chinese garment makers willing to invest overseas.

    Last summer, the world’s largest feather jacket manufacturer announced it was buying a six-story property on London’s Oxford Street for 21 million pounds ($33 million). And the company said that it plans to expand in Europe and the United States.

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