DGAP-News: IBMC China AG: Management Discussion and Analysis of the Operation Results
IBMC China AG / Final Results/Interim Report
09.09.2009
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Shanghai, China August 28, 2009 - IBMC CHINA AG (´4IB´) is happy to
announce the completion of 2008 Annual Report (Review of Operations, Annual
Financial Statements and Consolidated Financial Statements); Reports of
Statutory Auditors and Group Auditors.
The English and German version of the statutory audit for IBMC China AG and
of the consolidated financial statements can be found on IBMC website
www.ibmcchina.com.Below is an open letter from the President regarding the Management
Discussion and Analysis of the Operation Results of 2008:
Dear Shareholders,
IBMC has opened multiple stores throughout China within the first year of
operations. 2008 was a banner year for IBMC China AG, establishing first
26 stores in second tier cities such as Wuxi, Suzhou, and Chong Qing. Then,
because of high rent, hard to find good location, and risk vs. reward
concern, the Management has switch its focus to Shanghai for merger with
BBS-ex Factory Direct Discount Retail Operation and seeking for merger and
acquisition opportunities of the existing local brand distribution
channels.
Management only regrets not being able to enter Carrefour stores in China
as originally planned. The mega retail giant in China has specific
criteria to enter any store with only a consignment based agreement. IBMC
could not take all of the risk without any of the reward so the company
decided to grow organically through its own store openings.
The biggest factor for growth turned out to be BBS-ex Factory Direct
Discount Retail Stores. BBS-ex is the second landlord inside a large
shopping center, which collects a minimum rent plus participates in sales
revenue from the brand´s own products. BBs-ex concept is similar to
´factory outlet´, but locating them at inner city shopping malls because
most Chinese do not own their own cars yet.
While aggressively searching for new locations for BBs-ex, IBMC China AG
has helped open several new stores for Lilliput Kidswear brand in Shanghai.
We expect to see major growth for Lilliput since the consumer public has
responded extremely well to the product line and fashion style.
Management sincerely believes ´Cash is the King´ concept, especially in
this bad economic environment. IBMC is happy to announce the liquidity and
cash reserve are enough to keep the Company to achieve its short term and
long term goal.
For year 2009 and beyond, IBMC plans on growing by expanding the BBS-ex
concept, as well as focus on great performing brands in Shanghai area.
Company also understands that merging with local brands and retail chains
is another way for faster growth.
Signed,
Frank Yuan
President
For further information, please email info@ibmcchina.com