East Asia Holdings Reports 68% Increase in Operating Profit with Premium Brand
East Asia Holdings announced that both sales and profits recorded double-digit growth, driven by strong sales of premium products, boosting profitability.
According to East Asia Holdings' Q3 quarterly report on the 29th, cumulative operating profit reached 19.83 million yuan (approximately 3.66 billion KRW), a 67.52% increase compared to the same period last year. Sales increased by 22.85% year-on-year to 220 million yuan (approximately 41.41 billion KRW), and net profit rose by 31.7% to 17.49 million yuan (approximately 3.23 billion KRW).
The premium brand Premiata, operated by East Asia Holdings, contributed to profitability improvement through strong online sales. The operating profit margin increased by 2.4 percentage points year-on-year to 8.9%, and the net profit margin rose by 0.5 percentage points to 7.8%. In Q3, Premiata accounted for 30% of sales. Premiata is a high-end brand with a selling price per product reaching 2,000 yuan (approximately 360,000 KRW).
East Asia Holdings secured a 52% stake and management rights of the company owning the Premiata brand in May this year, and through additional investment in November, it acquired 100% ownership. Therefore, the contribution of the Premiata brand to East Asia Holdings' consolidated performance is expected to increase further.
East Asia Holdings is transforming into a fashion platform business and is actively absorbing high-quality overseas brands. Besides Premiata, meaningful sales contributions are expected in the future from brands operated by the company such as US POLO ASSN and Above the RIM.
Recently, the CEO’s capital increase has also fueled expectations for the company’s growth. CEO Jung So-young, the largest shareholder, participated in a paid-in capital increase on October 26th by injecting 9.1 billion KRW, increasing her stake from 6.25% to 22%.
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According to a company official, “The company is currently on the verge of attracting new overseas brands,” adding, “As these are well-known brands, the company’s future performance growth is highly anticipated.”
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