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At the Annual General Meeting of Li & Fung held on June 1, 2017, a poll was demanded by the chairman for voting on all proposed ordinary resolutions as set out in the Notice of AGM dated April 28, 2017.
The company’s share registrar in Hong Kong, Tricor Abacus, was appointed as the scrutineer at the AGM for the purpose of vote-taking.
The chairman is pleased to announce that all resolutions were duly passed at the AGM and the voting details were as follows:
As at May 25, 2017, i.e. the record date of AGM, the total number of issued shares in the company was 8,415,447,306 shares, which was the total number of shares entitling the holders to attend and vote for or against the resolutions at the AGM.
There was no restriction on any shareholders casting votes on any of the resolutions at the AGM.
There was no share of the company entitling the holders to attend and abstain from voting in favour of the resolutions at the AGM as set out in Rule 13.40 of the Rules Governing the Listing Securities on The Stock Exchange of Hong Kong and no shareholder of the company was required to abstain from voting at the AGM under the Listing Rules.
The Cotton Textiles Export Promotion Council (Texprocil) has urged the government to continue with the Rebate of State Levies (ROSL) scheme for three years as committed even under the GST regime as there are still many state taxes/levies which are not subsumed under the GST.
The ROSL scheme was announced in December 2016 for the made-ups sector for three years.
The ROSL rates were announced and were made effective from March 23, 2017. The objective of the scheme is to provide rebate of state levies consisting of state VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished made-ups.
Many leading companies manufacturing made-ups are reportedly drawing up plans for investments in this sector after the scheme has been announced.
The ROSL scheme is expected to lead to an increase in exports of made-ups articles which in turn will create more employment.
Texprocil says any increase in the exports of made-ups will create additional employment in the entire value chain such as spinning and weaving besides the made-ups sector especially in the rural areas and for women.
After the package was announced, between July 2016 and March 2017 garment exports increased to 13.47 billion dollars as against 12.37 billion dollars during the same period the preceding year.
According to the reports the Global sales of personal luxury goods will grow by expected 2-4 percent at constant exchange rates in 2017, as higher spending in Europe and China outpace weakness in the United States and Southeast Asia.
The study by consultancy group Bain and Italian luxury industry association Altagamma showed that in the year 2017, a total revenue in the sector that includes watches, jewelry, clothes, shoes and leather goods will rise to 254 billion-259 billion euros from 249 billion euros in 2016.
In October, Bain had forecast 2017 growth of 1-2 percent for the luxury sector, but the industry managed to grow 4 percent year-on-year in the first quarter of 2017.Claudia D'Arpizio, Bain partner and lead author of the study sated that after a difficult 2016, the first quarter of 2017 brought some relief to the luxury industry. Bain does not name specific companies, but in the first quarter of 2017 luxury giants LVMH Kering and Hermes all posted strong results.
Federica Levato who is Bain partner recently stated that it is a healthier growth than before. So we have revised our market forecast for this year and few players who are doing well are really outperforming.
Europe, which is starting to see tourists returning, is expected to be the fastest growing market for luxury goods this year, with sales seen up 7-9 percent.Bright spots were Spain, seen as a relatively safe destination, and Britain, rendered more affordable to tourists after a post-Brexit slump in sterling, while mainland China was also recovering with 6-8 percent growth, said the report. According to Bain sales in the rest of Asia could shrink 2-4 percent in 2017.
As per Bain report The United States, major luxury goods market, is also set to underperform, with a strong dollar and uncertainty about the policies of President Donald Trump expected to create a challenging environment.The study added that those born after 1995, will represent 45 percent of overall luxury consumption.
Mavi Giyim's one of the Turkish fashion retailer initial public offering (IPO) is seen priced at 43 to 51 lira per share, valuing the jeans maker at up to 2.5 billion lira ($700 million. Bids were to be collected on June 8-9 and trading in the shares was expected to begin on June 15.Mavi announced two weeks ago its plans for the listing on Istanbul's stock exchange.
Since its establishment in Istanbul in 1991, Mavi has grown into one of Turkey's best known clothing brands abroad, with a jeans range that includes styles including the Relaxed boyfriend" and the "Myles".
Its IPO is seen as a test of international demand for Turkish equities, after a coup attempt last year and a widespread crackdown that has seen more than 100,000 people sacked from their jobs and tens of thousands arrested.
According to Thomson Reuters data the Istanbul Stock Exchange has seen a sharp decline in listings: $14.3 million have been raised in IPOs in this year as compared with $119.9 million in the same period last year.
Goldman Sachs is acting as global coordinator and, together with Bank of America Corp's Merrill Lynch, as joint international bookrunners. Turkey's Is Yatirim is acting as domestic coordinator and bookrunner for the global offering.
For the quarter ended March 2017 sales of Rainbow Denim declined 18.56 per cent as against the previous quarter ended March 2016.For the full year, sales declined 18.41 per cent in the year ended March 2017 as against the previous year ended March 2016.
Rainbow’s ultramodern plant in Punjab uses rope-dyeing technology and has the capacity to produce 20 million meters of denim a year. The plant adheres to the strictest international norms of technology and environment-friendly processes.
Denim is not only produced in different depths of blue, but in various combination shades, making Rainbow part of the select few in India with such manufacturing capabilities. The modern, integrated plant with spinning, dyeing, weaving and finishing is equipped with state-of-the-art quality control systems at all stages of the manufacturing process.
The company offers products that are distinctly differentiated and in line with the fashion requirements of leading denim garment brands the world over.
The collection includes a variety of denims in weights ranging from 4.5 to 14.5 oz and exciting combinations of texture, shades and finishes.
Shades include normal indigo blue, sandwich shades, sulphur shades, combinations of indigo and sulphur layers of dyeing, tinting and overdyeing in different colors.
Pakistan’s textile and clothing exports rose by 6.2 per cent in March 2017 compared to February 2017.Textile machinery imports rose by 20.8 per cent during July to March fiscal year 2017 as against the same period last year suggesting increased activity in the textile sector which is a healthy sign and will give fruit in future.
Initiatives to boost textile exports have started showing positive results. These include drawbacks for garments at seven per cent, made-ups at six per cent, processed fabrics at five per cent and yarn and greige fabrics at four per cent, zero sales tax on machinery imports and no customs duty on manmade fibers other than polyester.
In July to April exports of readymade garments rose by 5.34 per cent while those of knitwear dropped 0.17 per cent. Exports of bed-wear edged up 5.01per cent while those of towels fell 4.38 per cent. Exports of cotton yarn witnessed a year-on-year decline of 3.68 per cent while those of cotton cloth and yarn (other than cotton) declined 5.73 per cent and 29.48 per cent.
The country imported 82,000 bales of cotton in December 2016-17 compared to 4,75,000 bales in December 2015-16. It imported 2,25,000 bales in January 2016-17 compared to 3,35,276 bales in January 2015-16.
For the fourth quarter Michael Kors’ net sales fell 11.3 per cent. During the fourth quarter, the company swung to a net loss, with total revenue decreasing 11.2 per cent. Michael Kors now expects same-store sales for the first quarter to decline in the high single-digit range.
The luxury retailer plans to close between 100 and 125 full-price retail stores over the next two years. This move is an important step in rightsizing points of distribution, which will improve long term brand equity, capital return and margin structure.
Michael Kors, among many of its peers in the retail space, has been hurt by lagging sales and dwindling foot traffic as more shoppers choose to ring up purchases online. Further, the retailer has had a difficult time marketing its products at full price.
Fiscal 2017 was a challenging year as the brand continued to operate in a difficult retail environment with elevated promotional levels. In addition, its product and store experience did not sufficiently engage and excite consumers.
Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. The company, established in 1981, currently produces a range of products like accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, eyewear and a full line of fragrance products.
Chris Waldeck is president of Lee and Rock & Republic .With more than 20 years of relevant industry experience, Waldeck joins Lee and Rock & Republic from Reebok, where he was most recently the vice president and general manager. In this role, he was responsible for brand marketing, merchandising, public relations, finance, operations and led a transformational growth platform across all channels – wholesale, retail and e-commerce.
During his 14-year career at Reebok, Waldeck held a variety of leadership positions where he gained international experience entering new categories, facilitating strong partnerships and endorsements, and establishing franchise models and owned stores.
He has a passion for the intersection of lifestyle and brand, which enables him to reach a broad base of consumers – especially those who engage actively in their apparel as a reflection of who they are and aspire to be.
Lee has spent decades building a brand image of the strong American man, especially with the classic tagline The Jeans that built America. Its sister brand Wrangler has also marketed itself as a brand of jeans infused with the machismo of the American West.
Lee has been in denims since 1889. The brand has to now reorient its image in the market to cater to women after years of focusing on selling the alpha male jeans.
At Pakistan’s cotton market, prices of all grades of cotton stood firm during the trading session.Around 9,600 bales changed hands.
Leading buyers in Sindh and Punjab stations bought better grade lint on premium prices offered by ginners during the trading session.
Second grade lint for blending purposes is expected to remain in higher demand along with growing demand for fine lint on slightly higher prices by the spinning sector.
Mills and the spinning sector were eager for better quality on the back of its growing end product demand on the domestic and export fronts.
Ginners withholding fine lint were steadfast and not ready to bow down before the buyers' offers since they were confident the price would not go below the spot rate.
Domestic buyers started accepting slightly higher prices as leading millers bought around 360 bales.
Ginners of Punjab offered quality cotton to buyers while ginners of Sindh offered raw lint to buyers.
In Sindh, moderate business has been noticed with around 900 bales of upper Sindh changing hands at Rs 6,600 per maund, about 100 bales of southern Punjab at Rs 6,750 per maund, 200 bales on ex-Karachi basis at Rs 6,550 per maund and 200 bales of upper Sindh selling at Rs 6,450 per maund.
According to the sixth edition of the ILO’s Cambodian bulletin, Cambodia’s garment and footwear sector exports continuous to grow in 2016, rising by 7.2 per cent to US$ 7.3 billion, on the other hand the number of exporting factories fell by 10.4 per cent and the number of workers declined by 2.9 per cent, compared to 2015.
The latest issue of the ILO’s Cambodian garment and footwear sector bulletin the three main factors which contributed to the divergence between strong exports and weaker employment and enterprise creation are rise in the industry’s productivity, statistical problems with the measurement of employment and factory numbers, and an increase in production in subcontracting factories.
A rise in employment and production in subcontracting factories could be a concerning development if subcontracting is being used as a way to undercut regulations, including labour law and the minimum wage, which should be carefully monitored by stakeholders says Maurizio Bussi, director of the ILO country office.
Garments and footwear remain the most important of Cambodia’s exports in 2016 as per the bulletin. The EU remains the most important market destination for Cambodia’s garment and footwear exports, with the US being second.
Average monthly earnings, including overtime, of Cambodia’s garment and footwear workers increased from US$ 145 in 2014 to US$ 175 in 2015 to US$ 195 in 2016. Adjusted for inflation, real average monthly wages/earnings were eight per cent higher in 2016 than they were in 2015.
The Bulletin has been published within the outline of the ‘Labour standards in global supply chains’ programme financed by the Federal Ministry of Economic Cooperation and Development (BMZ) on behalf of the Government of the Federal Republic of Germany.
