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Bauhaus International (Holdings) Ltd. (0483.HK)
The Group is principally engaged in their own brand "TOUGH", "SALAD" and "80/20" in clothing, handbags, rucksacks and accessories design, manufacturing, wholesale and retail business, as well as several other popular third-party brands include Levi's, MissSixty , Energie, Killah, Fornarina, Religion and the G-star clothing retail business. In addition to operating retail outlets in Hong Kong and Taiwan, the Group has actively expanding business in the world. Group's own brand "TOUGH" products popular overseas, namely China, Japan, Thailand, Singapore / Indonesia, Malaysia / Brunei, the United States of America ("U.S.") / Canada / Mexico, Italy / Switzerland, United Kingdom / Ireland, the Netherlands / Belgium / Luxembourg and the Middle East. Group positioning for the fashion industry, fashion casual wear one of the leading retailers to the fashion sense of young customers with the goal.
Retail Trading
Group operation and management of their own in the retail network in Hong Kong and Taiwan. On March 31, 2005, the Group in Hong Kong to "BAUHAUS", "TOUGH", "SALAD" and "LIBRE!" The name and 1 retail store operating 36 retail counters. Group is also in Taiwan to "TOUGH" name operates 10 retail counters, grouped in different department stores. Retail business to the core business of the Group. During the year ended year ended March 31, 2005, from Hong Kong and Taiwan business of retail sales of approximately 317,300,000 million (2003 / Lingsi year: 276,500,000 Hong Kong dollars), accounting for over 90% of Group turnover .
Franchise business
In addition to the retail business, the Group has also appointed an independent franchise business franchise. On March 31, 2005, the Group entered into with independent franchisees franchise agreement, China and Macau in the eight franchises. Under the franchise agreement, franchisees have the right to designated shops in the relevant franchise agreement stipulated that the retail sales price of the products supplied by the Group. Without the written consent of the Group, licensees may not sell in the shops of non-group products supplied. During the year ended year ended March 31, 2005, from franchised stores 7,700,000 gain of about HK (2003 / Lingsi year: 6,200,000 Hong Kong dollars), up about 24.2%. On March 31, 2005, and until after the date of this report, the Group entered into with independent third-party licensing agreements, in Shenzhen, lions, Changsha, Wenzhou, Hangzhou, Suzhou and Shenyang to open more than 7 "TOUGH" license store operations.
Wholesale Trading
The year under review, revenue from the wholesale trading of approximately 17,700,000 million (2003 / Lingsi year: 24,100,000 Hong Kong dollars). On March 31, 2005, the Group commissioned a total of nine (2003 / Lingsi year: 9) Overseas distributors throughout Japan, Thailand, Singapore / Indonesia, Malaysia / Brunei , United States / Canada / Mexico, Italy / Switzerland, United Kingdom / Ireland, the Netherlands / Belgium / Luxembourg and the Middle East. Distributors have the exclusive right of publicity and sales in the region "TOUGH" products. Distribution agreement for a period of three to ten years. By revenue in Japan as of 2004 and the year ended March 31, 2005 the largest overseas market. Japanese market in 2004 / Ling Wu annual turnover for the Group contribution of about 7,900,000 HK (2003 / Lingsi year: 18,400,000 Hong Kong dollars), down about 57.1%.
Marketing and publicity
During the year ended year ended March 31, 2005, the Group increased local and international market promotion efforts, and promote the brand image of the Group to enhance visibility. Advertising and promotional expenses from the 2003 / 2004 to 2004 about 2,100,000 HK / HK in 2005 about 3,300,000. In addition to regularly updated shop decoration and promotional items provided to the VIP members the latest news, the Group also took part in January 2005 in Germany at the International Fashion Trade Show "Bread andButter", arranged "TOUGH" brand of jeans in fashion show appearance, mostly from Europe to promote their products participating customers. In addition, in March 2005, the Group held in Hong Kong, Causeway Bay, with "GUILTY" as the theme of the fashion shows, celebrities invited to attend much more popular place. In April 2005, the Group sold its first one million retail jeans, to commemorate this success, the group held a "One MillionthJeans Party", invited Miss Li Jiaxin officiating guests, presented prizes to winners. Directors consider that the marketing campaign will help enhance the Group's image and increase the Group in the local media and international fashion platform exposure.