Evergreen's Revenue Soared Nearly 50% to HK$550 million YoY for 1H2021

Results Highlights

• Benefitted from the stabilized COVID-19 pandemic, the relaxation of capacity restrictions and the social distancing measures, the demand for human hair extension products and lace products has increased. During the Period, the revenue of the Group amounted to HK$548.9 million, representing a significant increase of HK$180.7 million, or 49.1%, as compared to HK$368.2 million for the corresponding period in 2020.
• During the Period, the Group's gross profit amounted to HK$117.4 million, representing an increase of HK$29.9 million, or 34.1%, as compared to HK$87.5 million for the corresponding period in 2020. The Group's gross profit margin was 21.4%.
• The Group's net profit for the Period was HK$30.8 million, representing an increase of 369.8%, as compared to HK$6.5 million for the corresponding period in 2020.
• As the pandemic gradually eased, people could return to hair salons for hair maintenance and styling, and to retail shops buying hair products, which drive the demand for and hence the sales of human hair extension products and lace products with high margin; meanwhile, the COVID-19 pandemic altered the lifestyle of people such as women of African descent, the primary patrons of African hair braiding salons, turned to the internet to learn how to style and braid their own hair, leading to a strong demand for braid products since the second half of 2020, and the demand continued throughout the rest of the Period.
• The Board has declared the payment of an interim dividend of HK$1.3 cent per Share for the Period, totally approximately HK$8.9 million.

HONG KONG, Aug. 20, 2021 /PRNewswire/ -- Evergreen Products Group Limited (stock code: 1962.HK; "Evergreen", together with its subsidiaries, the "Group"), a global-leading manufacturer of hair goods, announced its unaudited consolidated interim results for the six months ended 30 June 2021 (the "Period").

Thanks to the rising vaccination rate, the demand for hair products rebounded, driving a significant growth in the Group's business performance as compared to the same period in 2020. The lifting of the capacity restrictions and the social distancing measures in the Group's principal market, the United States, gradually restored the demand for salons and hair products, hence drove the rise of the Group's sales revenue. During the Period, the Group's revenue amounted to HK$548.9 million, representing a significant increase of HK$180.7 million, or 49.1%, as compared to HK$368.2 million for the corresponding period in 2020; the Group's gross profit amounted to HK$117.4 million, representing an increase of HK$29.9 million, or 34.1%, as compared to HK$87.5 million for the corresponding period in 2020. During the Period, the Group's gross profit margin was 21.4%; the Group's net profit for the Period was HK$30.8 million, representing an explosive growth of 369.8%, as compared to HK$6.5 million for the corresponding period in 2020. The Board has declared the payment of an interim dividend of HK$1.3 cent per Share for the Period, totally approximately HK$8.9 million, with the interim dividend payment ratio of 29.0%.

Sales Revenue Soared with an Expected Robust and Sustainable Demand

The significant increase in sales of braid items, which were one of the popular products, led to an increase of HK$164.0 million or 55.6% in wigs, hair accessories and others from HK$295.2 million for the six months ended 30 June 2020 to HK$459.1 million for the Period.

Besides, the sales volume of human hair products increased due the relaxation of the COVID-19 social distancing restrictions. People could return to hair salons for hair maintenance and styling, and to retail shops buying hair products. The market demand for human hair extensions gradually restored. Revenue for high-end human hair extensions, the Group's another principal product segment, increased by HK$16.8 million, or 32.7%, from HK$51.3 million for the six months ended 30 June 2020 to HK$68.0 million for the Period.

Although the sales of Halloween products was struck by the social distancing restrictions, its sales volume only slightly slid from HK$21.8 million for the six months ended June 30 2020 by HK$0.1 million or 0.6% to HK$21.6 million.

"With the increase in vaccination rate and the gradual easing of the COVID-19 pandemic, the Group's business growth proved that we have overcome the challenges brought by the pandemic, our sales and revenue have also got back on track with a steady increase, and the increase in net profit even reached 369.8%." Mr. Chang Yoe Chong Felix, the Chairman, Chief Executive Officer and Executive Director of Evergreen, said, "We believe that as the pandemic is getting more under-controlled, the market demand for braids and human hair products will gradually rebounded and remain high, bringing greater profits to the Group in the future. Looking forward, the Group will keep up with the online shopping trend and grow the E-commerce team, aiming to expand our customer base. We will also focus on our core business, closely monitor the latest development in the industry and adjust our pricing policy as well as develop new product mix to get well prepared for any future opportunities. We will provide customers the most appropriate products and services while create maximum value for our shareholders."

About Evergreen Products Group Limited (Stock Code: 1962.HK)

Founded in 1962, Evergreen is one of the leading global manufacturers of hair goods. Since its establishment, with in-depth industry knowledge and reputed for its quality products and comprehensive product portfolio, the Group has built up unique competitive advantages in the global hair goods market. Headquartered in Hong Kong, the Group has three production centres and five production centres in China and Bangladesh, respectively. The Group employs more than 25,000 people around the world and operates in Bangladesh, Hong Kong, China, Japan and the United States.

SOURCE Evergreen Products Group Limited

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