Following the footwear giant Belle International (01880.HK) in which the newspaper said it would continue to reduce the proportion of sports apparel agency business, Daphne International (00210, HK) have similar ideas. Recently, Daphne International said at its interim results presentation conference, will be out of Nike, Adidas brand apparel agency business. However, this is not a helpless move because of the shortage of funds. Daphne International has announced that it will maintain the goal of adding 350 "Daphne" and 250 shoe sales points throughout the year. This decision has been endorsed by investors and Sought after Daphne margin of 59%, shoe 54% According to the semi-annual report shows that Daphne Group in the first half of 2009 revenue increased 11.5% to 2.77 billion Hong Kong dollars, recorded operating profit of 408 million Hong Kong dollars, an increase of 14.3%. Including the fair value loss of the warrants issued during the period, attributable to equity holders' profit of HK $ 260 million. Under the influence of the financial tsunami, Daphne still has growth. The industry believes that the performance of its other core brand, "Shoebox," is not negligible. Earnings reports, the first half of this year, Daphne's "Shoebox" total number of stores reached 727, the turnover increased by 65.9%, single-store sales growth rate also increased by 5%. Although there is not a small cost pressure on rental costs and opening of new stores, Daphne reported a gross profit margin of 59%, while shoe as a new brand, with a gross profit margin of 54%. In the second half of the year, Will open 122 "Daphne" and 139 "shoe" points of sale, thereby promoting the development of the brand business, especially in the second and third tier markets. Its agency Nike shop plans to turn off However, in the second half of the planned Daphne "triumph", there is a mismatch with the main theme of "Xiao Qu", which is the gradual closure of the sportswear brand agency business. Daphne semi-annual report shows that as of June 30, Daphne closed within 21 months of its own agent of the "Adidas" point of sale, there are still remaining 107; its agent "Nike" shop only 8, closed in the first half 20 rooms. Eight "Nike" stores will be closed in the second half of the year, while 107 "A didas" outlets will not necessarily be closed. Yingzong Jie, deputy general manager of Daphne International Investor Relations, said the company is negotiating a resumption of business. The implication, Daphne seems to have set out the idea of ​​sports apparel agency business. In addition to the above decision, Daphne also sees the adjustment of agency business elsewhere - Daphne International has been appointed as the agent of "A rezzo", "Sofft" and "Born" throughout the year. However, throughout the first half of the year, only one "A rezzo", "Sofft" and "Born" points of sale were added. This type of agency-based adjustment and Belle International have the same purpose. Belle's semiannual performance report said its agency business is not satisfactory, representing Nike and Adidas, an increase of 2.5%. The Nike and Adidas sub-brands Converse and Reebok and other second-line sportswear brand performance without increasing minus, a decrease of 11.3%. As a result, Belle has closed down 346 stores related to poor business conditions. "Belle and Daphne adjustments are focused on the domestic market to concentrate on the operation of their own strong business." Apparel industry independent analyst Liao Jierong that many investment banks believe that apparel footwear production and sales companies have been proven more anti-risk ability Strong, the second half of the growth is the key point in time, focus on the advantages of resources is more conducive to enhancing the brand.