Li Fung'S Profit Fell To $539 Million In The Mainland.

It is reported that

With the growth of fast fashion mode such as H&M and Zara, Li&Fung Ltd. (0494.HK), the largest global sourcing company in Hongkong, has been hit hard.

Last year, Li Feng's profit fell to $539 million, down 21% from 2011, while its turnover was stagnant at around $19 billion.

Since hitting its highest point in 2011, the company's share price has fallen by more than 70%, with a market value of only $6 billion 200 million.

At the end of last century, with the development of China's economy, Li Feng has experienced more than 20 years of rapid growth.

However, after the financial crisis in 2010, the situation of the company became increasingly difficult.

Spencer Fung, chief executive of Li Feng, revealed that the world's demand was hit by the economic crisis, and the labor cost in the mainland of China was also rising rapidly, making this traditional procurement enterprise mainly rely on mainland suppliers to complain incessantly.

At the same time, excessive reliance on debt issuance and acquisition of the group has been laborious.

In the past 20 years, Li Feng Group has completed 100 acquisitions, according to the financial times.

During the period from 2008 to 2012, Li Fung spent about 5 billion US dollars for 33 acquisitions. However, the actual number of contributions made by the acquisition figures does not seem to be enough.

Hongkong Lifeng group is one of the oldest exporters in Hongkong. Its history can be traced back to 1906. Its main business includes trade, logistics and distribution of consumer products.

The group's subsidiary companies include Li Feng Trading Co., Ltd., Leah retail Co., Ltd., Li Bang Fashion Co., Ltd., Li Yue Fashion Co., Ltd. and Li He logistics group, including brand Toys R & D and OK convenience stores.

Li Feng Group, formerly known as Guangzhou Lifeng trading company, was the first Chinese exporter of foreign trade in China at that time.

Partner Li Daoming withdrew from the group in 1940s and sold the shares to another founder Feng Bailiao and his family.

Feng Yujun, a great grandson of Feng Bailiao, took the lead of Li Feng last March.

Feng Yujun appealed to investors to give more patience to the strategic adjustment company.

After the increase in 9 months, the Feng family held a stake of 30%.

The company has divested itself of what is now called a profit margin.

Global Brands Group's brand merchandise business, which is now listed in Hongkong, has a market value of about $1 billion 800 million.

Li Feng is continuing to adjust its structure and expand to new growth areas such as e-commerce and logistics.

At the same time, Li Feng began to purchase commodities outside the mainland of China, such as Bangladesh and Vietnam, which had lower wages.

Feng Yujun said the 70%-80%'s durable goods (such as furniture) were still collected from the mainland of China, but clothing from the mainland accounted for only 35%-40%.

Despite its growing Asian business, Li Feng still occupies only its business.

The 12% is still different from the 63% in the US and 17% in Europe.

At present, Li Feng hopes to further increase sales in the mainland of China.