HONG KONG, Aug. 31, 2011 /PRNewswire-Asia/ -- Prince Frog International Holdings Limited ("Prince Frog" or the "Company", together with its subsidiaries, the "Group", Stock code: 1259.HK), a leading children care product brand in China, today announced its interim results for the six months ended 30 June 2011 ("period under review").
Financial Highlights
| For the six months ended 30 June | |||
| 2011 RMB million |
2010 RMB million |
Change (%) |
|
| Revenue | 551.3 | 346.7 | +59.0% |
| Gross Profit | 222.2 | 126.3 | +75.9% |
| Gross Profit Margin | 40.3% | 36.4% | +3.9% pts |
| Profit Attributable to Equity Holders of the Company | 69.6 | 40.7 | +71.2% |
| Net Profit Margin | 12.6% | 11.7% | +0.9% pts |
| Basic Earnings Per Share (RMB cents) | 9.3 | 5.4 | +72.2% |
For the six months ended 30 June 2011, revenue of the Group amounted to approximately RMB551.3 million, representing an increase of 59.0% as compared to the corresponding period last year, while revenue generated from the Frog Prince brand increased by 78.5% to approximately RMB336.2 million. During the period under review, gross profit amounted to RMB222.2 million, representing an increase of 75.9% as compared to the corresponding period last year. For the six months ended 30 June 2011, profit attributable to equity holders of the Company amounted to approximately RMB69.6 million, representing an increase of 71.2% as compared to the corresponding period last year. Meanwhile, gross profit margin and net profit margin of the Group have reached 40.3% and 12.6% respectively during the period under review. Basic earnings per share were RMB9.3 cents (Corresponding period of 2010: RMB5.4 cents).The board of directors of the Company does not recommend the payment of an interim dividend for the six months ended 30 June 2011.
Prince Frog was listed on the main board of the Hong Kong Stock Exchange on 15 July this year. Along with the rapid development of China's economy, consumption became its key growth driver. Benefitting from the increase in household disposable income, change in household spending concepts and the impact of one-child policy, the Group has successfully captured the opportunities arising from the market and looked into consumer demand to enhance its children's personal care product mix and expand its domestic market with focus in product quality and brand image. Prince Frog will further penetrate into the market of China and strive to become a leading player in the children's personal care product market.
During the period under review, 131 new products were launched under the three major brands of the Group, namely Frog Prince brand, Shuangfeijian brand and Shenhuxi brand, covering a product portfolio of skincare products, bath and shampoo products, oral care products and diaper products, etc. and comprehensively satisfying the needs of baby and children care. The Group currently has 173 distributors, through which the products were distributed to different types of retail stores including hypermarkets, mother and children specialty stores and convenience stores, and in all provinces, autonomous regions and municipalities across China. With its leading market position in the second-, third- and fourth-tier cities as well as its recognized brand image, the Group will continue to launch new product lines and actively tap top-tier customers. Currently, Frog Prince branded children care products are now sold at major supermarket chains in first-tier cities including Shanghai and Guangzhou, etc.
To raise Frog Prince's brand profile, the Group continued to promote with the Frog Prince animation series. The second season of the animation series was broadcast on 28 major local television channels during the summer in 2011. Leveraging the success of the first two seasons, the Group will produce a third season later this year to further promote the brand. Meanwhile, the Group also plans to step up marketing efforts for its products through television and other media, such as TV commercials on children's channels and magazine advertisements targeting parents. In addition, the Group will continue to raise its brand awareness and promote its image through in-store marketing activities.
Regarding the products, the Group places great emphasis on quality and safety. During the period under review, all of the Group's baby care and children's personal care products and household hygiene products were in compliance with the relevant national standards in China. In addition, the Group engaged Intertek in testing all of its baby and children's personal care products during its Listing and found that the products submitted for testing passed the tests relating to certain key parameters for safety and compliance of cosmetic products under the Cosmetics Directive in the European Union for cosmetics products. The Group also set up a dedicated team to carry out stringent quality control in the procurement of raw materials and packaging materials. Furthermore, the Group plans to allocate more funds to R&D as well as set up a new R&D centre in Shanghai with advanced testing equipment, and employ technical experts to strengthen its R&D capability for baby and children's personal care products.
The first phase of construction the Group's new plant was completed and operations commenced in May 2011. Construction of the second and third phases of the expansion plan has also commenced and is expected to be completed by 2013. After expanding its production area, installing advanced equipment and establishing new production lines, the annual output of skin care, bath and shampoo and oral care products will be significantly increased. Apart from that, the Group will further enhance recognition of the Frog Prince brand through continuing production of the Frog Prince animation series, television commercials, outdoor advertisements and advertisements on public transport. Prince Frog aims to provide services to Chinese children and raise the quality of their lives, thus building its brand to be a leader in China's children care industry.
Mr. Li Zhenhui, Chairman, Chief Executive Officer and Executive Director of Prince Frog concluded, "Looking ahead, The Group will further expand its distribution network as well as its presence beyond second-, third- and fourth-tier cities to first-tier cities. As part of our response to changing consumer needs and to enhance customer loyalty, the Group will continue to develop the high-end product lines that target high-end customers at local and international supermarket chains, step up its promotion of oral care products and expand marketing strategies for and the portfolio of baby and children's personal care products. Riding on the industry boom, we endeavor to capture opportunities arising from increasing spending power in China. We will persist on maintaining product quality and expand our business with the brand image as our first priority, while striving to be a leading enterprise in the children's personal care product industry of China and bringing the greatest return for our investors."
About Prince Frog International Holdings Limited
Prince Frog mainly designs and supplies a wide range of children care products under its own brand – Frog Prince, including skin care products, shampoo and bath products, oral care products and diapers products which specifically designed for the mid-range market. In 2010, among all the Chinese brands in China, Frog Prince is a leading brand of children's care product brands. According to the sales amount, it occupied the largest market share in skin care products, bath products and shampoo oral care products. In addition to children care products, the company also provides baby care products, household hygiene products and adult care products under its own brand names and manufacture OEM products through its self-own brands ("Frog Prince", "Shuangfeijian", "Shenhuxi").
The Group currently has 173 distributors, through which the products are distributed to different types of retail stores including hypermarkets, mother and children products specialty stores and convenience stores and cover all provinces, autonomous regions and municipalities in China. Leveraging the broad retail network, Prince Frog has already held a leading market position in the second and third-tier cities.
