Open F2F Class Notes 22nd September (Eddie)

Have you had a nice day today?

I’m stressing out about this.

Good afternoon everyone, thank you for attending.

I am Haley and in charge of Dun brand. Today I will give you an overview of Dun financial performance in FY17 based on the 3 points below:

One: Financial performance review

Two: Duke Project

Three: Network update

Firstly, let’s review LE09 financial data. From the chart below, you can find the operating result is much lower than BU17. The reasons are that the sales only achieve 65% of BU17 and much higher OMM which are caused by the stocks write-off. Although we will close some boutiques and terminate wholesale business, the S&D expression is in line with BU17, because boutiques closure require to pay some penalties, such as staff severance fees, lease penalties, boutique reinstatement fees, fixed assets disposal and so on.

Secondly, I will summarize Duke Project. One, for retail business, 14 key stores will be keep at the end of FY17, and 2 new stores have been opened in Jul and Sep,16. We will keep 3 outlets stores, outlet stores will be optional in late FY17 and FY18. Two, for wholesales business, we will terminate it.

Thirdly, an update on our current network. By the end of FY17, none of wholesales external boutiques and retail stores will decrease to 27.

Good afternoon everyone, thank you for attending.

I am Haley and I’m in charge of the Dun brand. Today I will give you an overview of Dun‘s financial performance in FY17 based on the 3 points below:

One: Financial performance review

Two: Duke Project

Three: Network update

Firstly, let’s review the LE09 financial data. From the chart below, you can find the operating result is much lower than BU17. The reasons are that the sales only achieve 65% of BU17 and much higher OMM which are caused by stock write-offs. Although we will close some boutiques and terminate wholesale business, the S&D expression is in line with BU17, as boutique closures require payment of certain penalties, such as staff severance fees, lease penalties, boutique reinstatement fees, fixed asset disposal and so on.

Secondly, I will summarize the Duke Project. One, for retail business, 14 key stores will be kept at the end of FY17, and 2 new stores have been opened in Jul and Sep 2016. We will keep 3 outlet stores; further outlet store closures will be optional in late FY17 and FY18. Two, we will terminate all wholesale business.

Thirdly, an update on our current network. By the end of FY17, all external wholesale boutiques will be closed while the number of retail stores will decrease to 27.

F&B = food and beverage