KAPPA Parent Company China Moves Under 30% Line Stores To Resume Business

In February 21st, the motion brand KAPPA parent company China trend announced that the group and its subsidiaries, according to the guidelines and requirements of the relevant government's epidemic prevention and rehabilitation, had resumed the following line stores (excluding KAPPA children's clothing business) as of February 19, 2020, accounting for 30% of the total number of stores, and other stores were gradually resuming work.

The announcement said that in the face of the grim situation of nationwide epidemic prevention and control, the China trend group set up a leading group for emergency management of epidemic diseases for the first time, strengthening internal management, coordinating the arrangement of epidemic prevention and control, and timely launching the daily information statistics on whether the workers were involved in the epidemic situation, so as to ensure the health and safety of employees. Arrange and deploy various subsidiaries to actively cooperate with local governments in the prevention and control of epidemic situation, suspend business and extend holidays in a timely manner, and deal with the deployment and resource deployment of business related, customer related emergency work.

As for the supply of commodities, the trend of China indicated that the storage of goods stored in warehouses in Wuhan, Hubei Province, especially the majority of goods on line and children's clothing, could not be circulated due to the factors such as delayed work resumed by the epidemic, delayed logistics and customs clearance. But before the Spring Festival, the group has made corresponding offline commodity reserves according to the marketing situation after the Spring Festival, and actively communicated and coordinated with the parties during the holiday period, and allocated the commodities under the line to online support. From the current situation, road transport has been gradually improved, and online and children's clothing products have been gradually replenished. It is not expected that serious supply will be affected.

Judging from the financial situation, the Chinese trend management group, combined with the group and subsidiary business models and the current epidemic situation, judged that the epidemic will have a greater impact on the performance of sports apparel in the fourth quarter of the 2019/2020 group, but it is not expected to have a significant impact on the overall performance of the group including the investment business.