Shares in Bosideng International Holdings, China’s top home-grown down jacket brand, surged by 6.7% in morning trade at the Hong Kong Stock Exchange after the company reported significant gains in profit and sales for the year ending March 31. Sales increased by 38% to 23.2 billion yuan, or $3.2 billion, while profit rose by 43% to approximately 3.1 billion yuan. This strong performance has helped Bosideng’s stock to increase by more than 30% in the past year, outperforming Hong Kong’s benchmark Hang Seng Index which dropped by 7% during the same period.
Gao Dekang, the billionaire CEO of Bosideng, has a fortune worth $5.1 billion on the Forbes Real-Time Billionaires List. The company’s success has also attracted investments from companies like Itochu of Japan, with rivals including Canada Goose. Bosideng’s board has proposed a final dividend of HK$0.20 per ordinary share for the latest fiscal year, showcasing its commitment to rewarding shareholders for its strong performance.
Bosideng credits part of its success to the improvement in China’s economy, stating that the country’s economic rebound has maintained momentum and economic restructuring has progressed steadily. The domestic market has also been revitalized, providing a solid foundation for enterprises’ sustainable development. Sales gains were led by the Bosideng brand, which saw a 42.7% increase in down apparel business to 16.8 billion yuan. The company attributes this growth to consumer preference for local brands and China’s growing cultural confidence.
Online sales for all of Bosideng’s brands also saw a significant increase, rising by 40.6% from the previous year to 6.9 billion yuan. Looking ahead, Bosideng aims to capitalize on opportunities arising from technological innovation, accelerate digital transformation, and promote green development. The company is optimistic about its future prospects and is focused on maintaining its momentum in the market.
Gao Dekang originally set up his first apparel business in 1975 in eastern China’s Jiangsu Province with a team of 11 villagers, learning how to sew from his father. Over the years, the business grew and was formally established as the Bosideng Corp. in 1994, with Gao as the driving force behind its success. One of Gao’s early successes was securing space to sell his jackets in the department store industry, which was dominated by state-owned companies at the time.
Overall, Bosideng’s impressive financial results and strong performance have positioned the company as a leader in China’s down jacket market. With a focus on innovation, digital transformation, and sustainability, Bosideng is poised to continue its growth trajectory and further strengthen its position as a top home-grown brand in the country. Investors and shareholders are likely to be pleased with the company’s recent success and optimistic outlook for the future.
