Sat, Mar 15, 2014 - Page 13 News List

Chlitina banks on rising wages in China

By Camaron Kao  /  Staff reporter

Chlitina Holding Ltd (麗豐), which provides cosmetics products in China under its own brand, aims to post 20 percent revenue growth this year on the back of rising disposable income in second and third-tier cities in China.

“We expect the Chinese government to put more resources in the second and third-tier cities this year than a year ago, increasing disposable income in those cities,” Chlitina president and chief executive officer Richard Yu (余敬倫) told reporters yesterday.

Stronger revenue contribution from these cities in China allowed the company to post NT$445.77 million (US$14.7 million) in revenue from January through last month, up 35.01 percent from NT$330.17 million a year ago, Yu said.

Chlitina has set a goal of setting up more than 500 shops this year and establish 2,000 more shops to cater for a further 400,000 customers in China in the next five years.

The company had 3,086 shops and 1 million customers at the beginning of this year, Yu said.

Chlitina registered revenue of NT$2.7 billion last year, up 12.16 percent from NT$2.41 billion a year ago, but revenue growth was less than 25 percent — which the company reported in 2011 and 2012 — as consumption in China dropped after the Beijing announced a ban on lavish spending.

The company’s net income for last year was NT$693.28 million, or NT$10.25 per share, up from NT$590.39 million a year ago.

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