XTEP'S Profits Rose Last Year, But Profits Declined Slightly.

The number of units sold in the same store in the fourth quarter of last year

XTEP announced that orders for orders from the first quarter to the third quarter have been continuously improved.

Through flexible ordering policy, the group manages the exclusive business effectively.

The order volume of the third quarter of this year, which was held at the beginning of January this year, has improved in the eighth quarter of this year. The order volume (calculated at wholesale value) in the third quarter of this year has increased by less than the same period last year.

The average sales performance of the group in the fourth quarter of last year (at retail value) was also higher than that of the same period in 2013.

The positive control of retailer orders also enables the retail end to achieve the normal inventory level.

Therefore, the inventory of the retail distribution channel of the group is kept at a healthy level, and the inventory sales ratio is about four and a half months to five months.

Profits plunged 21% to 478 million

As at the end of last year, shareholders' profits should be reduced by 21% to 478 million yuan (RMB, the same below), and 21.95 cents per share, with a final dividend of HK $five per share and a special dividend of HK $three per share.

Ding Bingbo, chairman and chief executive of the group, said that in order to further develop the business of electronic commerce, more online products and seasonal products will be launched in the future.

XTEP also announced orders for the third quarter of 2015, showing an increase in the number of orders per unit compared with the same period last year, and an increase in the number of units sold in the same quarter last year.

Benefiting from new product replenishment orders, a high number of units has been recorded, coupled with prudent sales order management to reduce the risk of overhang in distribution channels. The revenue of the group has increased by 10% to 4 billion 777 million yuan per year, with footwear revenue increasing by 35.4% to 3 billion 42 million yuan annually, but clothing and accessories revenue fell by 16.1% and 44%, respectively, to 1 billion 687 million yuan and 47 million 200 thousand yuan.

During the year,

Gross margin rose 11.4% to 1 billion 946 million 900 thousand yuan, and gross margin rose 0.6 percentage points to 40.8%. The group explained that the proportion of footwear products with higher gross profit margin in the period increased from 51.7% in the same period in 2013 to 63.7% last year.

Footwear gross margin is 42.1%.

In addition, the number of days of inventory turnover decreased by eight days to 71 days, mainly due to the cautious improvement in product sales orders and supply chain management, resulting in higher on time delivery rates.

The dividend payout date is June 26th, and the pfer date is May 22nd.

As of the end of last year, the number of XTEP distributors increased from 28 to 37, and the number of retail outlets decreased by 250 to 7110.

Ding Bingbo said that by the end of this year, the number of XTEP retailers will be about 7100 to 7200, and the expansion of children's sales outlets to about 600 to 800.

In the next ten years, the State Council will develop the sports industry to several trillion yuan industrial scale, coupled with the promotion of urbanization, the rise of disposable income and the popularity of sports in the mainland.

And football are the two most favored sports items.