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    XTEP'S Brand Positioning Pforms From Fashion Sports To Sports Fashion.

    2016/3/15 17:52:00 106

    XTEPFashionClothing

    In 2015,

    XTEP

    Brand positioning from

    fashion

    Sports pformation is a sports fashion. Functional sports products are popular.

    clothing

    The income of accessories has increased.

    Take running as the new focus, and actively expand e-commerce business, driving group's revenue growth 10.8% to RMB 5 billion 295 million 100 thousand yuan, gross gross profit margin increased 1.4 percentage point to 42.2%.

    The successful management strategy of improved and flat distribution channels and strict control of retail inventories reduced the total working capital turnover from 77 days in 2014 to 60 days, and the inventory level decreased by 30% to RMB 398 million 400 thousand yuan compared with 2014.

    The profit attributable to equity holders increased by 30.3% to 622 million 600 thousand yuan, with a basic earnings of 28.97 yuan per share.

    Operating cash inflows increased to 786 million 500 thousand yuan.

    The board recommended a dividend payment of HK $7 per share and a special dividend of HK $3.5 per share, a 31.3% increase over the same period last year and a year-on-year dividend yield of 60%.

    Brand marketing

    During the year, the group continued to implement the dual marketing strategy of "sports + entertainment", sponsoring the 17 famous international marathons in China and Hongkong, and the mass run event "XTEP colorful night running", becoming the exclusive sports brand sponsor of China's first youth games, and for fifth consecutive years, it sponsored the two official football league matches of China's two universities: "XTEP China University Football League" and "XTEP China University Futsal League".

    At the same time, it also strengthens its brand's fashion image and sportsmanship by cooperating with celebrities, brand opinion leaders and sponsoring several high ratings TV programs.

    Product

    The group promotes its professional functions in an all-round way.

    In addition to the "power nests", "shock absorption" and "air energy ring" running series, the "soft cushion", "aromatic technology", "immortal shield" and "XTEP ice technology" have been developed.

    In terms of clothing, in addition to the main technology "X-S.E.T. XTEP elastic technology", "ice technology" and "cool dry technology", the United States introduced DuPont TM Sorona natural biomass fiber.

    The group also works with Qihoo 360 to develop children's smart shoes. The first product, children's "intelligent tracking shoes", has global positioning function. It has been on the market in the first quarter of 2016, and its income has recorded a satisfactory increase.

    Retail channel management

    The group continued to fine and flat distribution channels, increased the number of distributors to 38, and intends to continue to increase distributors gradually, reducing the level of distribution channels from multi-storey to two levels.

    The total proportion of retail outlets owned by XTEP distributors has increased to more than 50% of the total retail stores, while the number of XTEP retailers covered by the real-time distribution resource system has exceeded 85% of XTEP's retail stores.

    Electronic commerce

    The group's e-commerce platform generated significant revenue growth, accounting for a low double-digit figure of the group's total revenue during the year.

    XTEP is also the top selling footwear brand in Tmall.

    Especially on the day of Tmall's famous e-commerce shopping day, "double eleven", the group generated more than one hundred million yuan in revenue from the e-commerce platform.

    Future outlook

    2015 brought new opportunities for China's sporting goods industry.

    High potential categories such as running, soccer, comprehensive training, outdoor, women and intelligent products are regarded as important areas to promote the future growth of the sporting goods industry.

    To seize business opportunities, the group will continue to implement the strategy of "3+" strategic innovation and "sports + entertainment" dual track marketing strategy, becoming the preferred brand of runners.

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