①The company plans to invest no more than 2.3 billion yuan to build a "biem.l.fdlkk garment Bay Area fashion industry headquarters base project", which is expected to be completed in 8 to 10 years; ②The project funding comes from its own or self-raised funds, and the company indicates that cash flow is relatively abundant; ③In the first quarter of this year, the company's revenue increased by 17.55% year-on-year. The company claims that this is already a very good performance compared to its peers.
On June 5th, Caixin reported that the golf apparel brand Biem.l.fdlkk Garment (002832.SZ) announced tonight that the company plans to invest no more than 2.3 billion yuan to build the 'Biem.l.fdlkk Bay Fashion Industry Headquarters Base Project', an investment amount equivalent to the company's net income for the three years from 2021 to 2023.
The project is located in Panyu District, Guangzhou. Biem.l.fdlkk Garment purchased the land use rights for 209 million yuan in December 2022. The project is planned to be built in three phases, with an estimated completion time of 8-10 years. It plans to build an international fashion industry headquarters, international fashion release center, high-end fabric R&D center, intelligent board room center (board room library), testing center, small intelligent production workshop (professional T-shirt manufacturing), company brand museum, live broadcast and other new retail operation centers, and employee fitness and sports centers.
Public information shows that in December of last year, Biem.l.fdlkk Garment officially launched the group headquarters project in Panyu, Guangzhou. The new headquarters covers an area of 137 mu (9 hectares) with a construction area of nearly 600,000 square meters. According to the announcement of the Guangzhou Planning and Natural Resources Bureau, the land purchased by Biem.l.fdlkk Garment in 2022 covers a total area of about 158 acres. In terms of area, the new headquarters building is absolutely key in the project.
In addition to publicity, Biem.l.fdlkk Garment did not mention more information about the headquarters construction, including the investment amount and source of the new building acquired in Hualong Town in late 2022. Many investors asked about the investment amount and source of the new building and whether it would affect the company's operations at the performance conference held on May 9, and the company did not make a positive response.
The announcement tonight mentioned that the project funds come from the company's own or self-raised funds. Biem.l.fdlkk Garment stated that 'the company's financial situation is stable, cash flow is relatively abundant, and the company will gradually invest based on the construction progress.'
As of the end of the first quarter, the company had RMB 3.226 billion in monetary funds. According to the company's 2023 financial report, the net cash flow from operating activities that year was RMB 1.296 billion, an increase of 37.53% compared to the same period last year. As of the end of 2023, the company's cash balance was RMB 2.16 billion, accounting for 32.11% of total assets, with no short-term or long-term borrowings. In terms of profitability, the company's sales gross profit margin is close to 80%, and its net profit margin for sales is 25.8%.
After 12 consecutive years of double revenue and net profit growth, at the company's 20th anniversary celebration held in June 2023, the chairman of Biem.l.fdlkk Garment arrogantly proposed that the company's revenue target for the next 10 years is to increase tenfold, with a total revenue scale exceeding 30 billion yuan, which means that the average compound growth rate must reach 25.8% per year.
In the first quarter of this year, Biem.l.fdlkk Garment's revenue grew by 17.55%. At the performance conference held on May 9th, an investor asked, 'What are the main reasons for the lower-than-expected performance in the first quarter of this year, and will there be improvements in the second quarter?' The company replied that the first quarter revenue growth of the company is already a very good performance compared to peers and will continue to maintain a good development trend.
Public information shows that Biem.l.fdlkk Garment focuses on golf apparel and currently has five major brands: Biem.l.fdlkk Garment, Biem.l.fdlkk Golf, Carnaval de Venise (Venice Carnival), CERRUTI 1881, and KENT & CURWEN.