On August 25, HOdo Stock published its Semiannual Report of 2016. Both the operating income and the net profit of the company have increased, and the latter has doubled. Although the Chinese economy is showing a stable operation and the domestic and foreign markets of textile and garment are developing slowly, HOdo Stock has made significant progress by standing out among listed textile and garment enterprises. According to announcement, from January to June, the company’s main business income amounted to 1.3367528 billion Yuan, registering a year-on-year growth of 22.57%. The net profit belonging to the owner of the parent company totaled 59.1691 million Yuan, showing a year-on-year increase of 103.43%. 

The garment business becomes the main driving force. Within the report period, the operation revenue of the garment business of HOdo Stock showed a year-on-year growth of 24.25%, which was higher than its real estate business. That is because the operation revenue of retail stores during the first half year has increased compared with the same period of last year, which led to the increase of sales revenue. Revolving around the channel expansion strategy based on the principle of three optimization, the company promoted retail store expansion stably. It held several meetings for attracting investment in major cities to select excellent merchants and to continuously create a new model for joint operation with HOdo. At the same time, the company focused on arranging brand image stores in key cities to advertise these stores and make the brand market more influential. For brand construction, the company earnestly created the No. 1 culture brand for men’s wear in China. HOdoStock adopted the strategy which combines activity marketing and brand marketing, that is, to contribute to dissemination by means of nodes and hot spots and to move consumers by affection-featured marketing. During the Spring Festival and the Father's Day, a series of sales activities have been launched, such as “HOdo men’s wear brings love to home” and “gifts for Father's Day”- Love to Fathers. The company launched advertisements at mainstream TV media, cinemas countrywide and core business circles. The large variety show Negotiator whose title is sponsored by HOdo Stock enriched the brand connotation and what is beyond the brand.  

Online and offline sales are developing simultaneously. For online sales, HOdo Stock enhanced in-depth cooperation with Taobao, Tmall, Vipshop, Jingdong and other platforms, which brought about more desirable business performance. In the first half year, the company conducted WeChat layout and the offline stores established online small stores, which led to a network sales system that integrates chain stores and exclusive stores and that provides consumers with more convenient value-added service. These are directed at operating the O2O model in a large scale. For offline sales, the company intensified its effort in retail store management, strictly centered on standardization and deepened the service concept. It also organized technical ability PK by focusing on product knowledge, display skills and great service ability. Marketing activities for opening of new shops and anniversary for retail stores were also carried out for the purpose ofraising business performance. Problem solving teams were also established to address issues on retail store operations and to improve both the management level and business performance. To be more in line with the expansion of offline retail stores, HOdo Stock will popularize its brand in retail stores. Through the opening of the first smart retail store, the company will adopt the new experience-based consumption model and endow the men’s wear of HOdo with new connotations by combining with the red T, western-style clothes and other hot products. 

In the future, the progress of the Intelligent HOdo project will contribute to the development of HOdo Stock. Within the report period, the company involved itself actively in capital operation and raised a fund of 1.81 billion Yuan through non-public stock issuance. Presently, the application for non-public stock issuance has been approved by the CSRC. In the future, the company shall focus on the development of chain stores and exclusive shops for men’s wear of HOdo and develop e-commerce in a rapid way. It will go ahead to carry out intelligent construction and establish an intelligent platform that integrates enterprise information flow, capital flow, logistics, and workflow, which are aimed at contributing to scientific, networked and intelligent operation and management for the company and at enabling the company to quickly transform to the operation model of “intelligence creates operation”. 

Issuance of this report makes investors more confident of the development of HOdo Stock. According to the evaluation of securities analysts of the same industry, the increase in the company’s main business income is mainly resulted from its clothes business. HOdo’s booming online and offline men’s clothes led to rapid growth of business performance. Currently, the online and offline operation revenue for men’s wear accounts for approx. 14% and 86% respectively. It is expected that the expanded offline franchised outlets will contribute to the main economic growth points for men’s wear of HOdo in recent years. According to financial data, HOdo’s business for men’s wear is likely to boom in the coming future.