The luxury brand Coach (6388) earlier announced the results for the second financial quarter ending at the end of December 2013. Net revenue fell 15.7% year-on-year to 297 million US dollars, mainly due to weak performance in the women's handbags and accessories business in North America, while total sales in the mainland increased by about 25%. Similarly, in the third financial quarter ending at the end of October last year, PRADA (1913) had a net profit increase of only 7.9% in the Asia Pacific region, which accounted for the highest share, by only 7.9%, which is far less than the 33.3% increase in the same period in 2012. The news has caused the market to be concerned about the future of the luxury goods market.

Facing the growth and relaxation of the luxury market, Age Group (1023), which works as an OEM for Coach, Prada, and Michael Kors, began expanding second-tier luxury retail business with the TUSCAN'S brand as early as 2011. As of the end of June 2013, it owned and operated a total of 8 independent retail stores and 37 department store counters, and plans to double the number of branches to 80 by the middle of this year. The agency business helps to understand the latest trends at an early stage, plus the price of its products is relatively cheap; however, the current revenue contribution is still low, and the initial investment has also caused the business to continue to lose records. The prospects are still awaiting increased brand awareness and a wider range of products, so the losses can only be expected to gradually narrow. The manufacturing business remains the group's main source of revenue, accounting for 98.4% of revenue for the year ended at the end of June last year. During the period, the Group had more than 200 production lines in operation, and the R&D center also produced about 100 kinds of handbags and small leather goods of different designs and styles every six months to support revenue growth. The Anglo-German manufacturing facility is undergoing a second-stage expansion project. It mainly develops suitcase handles and hard cases, which will help expand the product portfolio. Furthermore, the two largest customers account for nearly 70% of the division's revenue, and are extremely dependent on a single customer, increasing business risk.

At the end of the period, it had 835 million yuan in cash on hand, and no unredeemed bank loans or other loans. Sufficient funds were beneficial to future development and support dividend payments. The annual dividend for the previous fiscal year was 22 cents per share, and the current interest rate was about 5.5%, which is defensive. In terms of trend, it rose to 5.18 yuan on December 9, peaked down, and fell to a “big sun candle” backlash yesterday. The STC%K line rose through the %D line, but the MACD maintained a bear gap. You can consider absorption at a level of 3.8 yuan. It is expected to reach 4.55 yuan, and can be held continuously at 3.56 yuan without falling below 3.56 yuan.