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    XTEP International: Rectification Is Quite Successful. This Year, We Launched The Multi Brand Strategy.

    2019/8/22 18:06:00 17

    AchievementBrandStrategy

    In August 21st, XTEP International (01368) held its 2019 mid term performance conference in Hongkong. At the meeting, Ding Shuibo, chairman and chief executive officer, said: the group continued to achieve excellent financial performance in the first half of 2019, benefiting from product upgrading and strong growth momentum in the mainland China sporting goods market. During the period, the group's revenue increased by 23% to 3 billion 357 million yuan, gross profit margin rose to 44.6%, and shareholders' profits increased by 23% to 463 million.

    Ding Shuibo said at the same time: on such a sound basis, the group launched the multi brand strategy this year, marking the new milestone of XTEP. The main distribution of the main brand XTEP, first, we will continue to pay attention to, solid leadership. Second to enhance the brand and products, start the basketball strategy, including the recently signed basketball spokesman Jeremy Lin. I believe that with his good image and popularity, our upcoming products will surely be popular.

    Yang Lubin, chief financial officer, said: "this is XTEP's second years after three years of rectification. Its performance has increased significantly over the same period of the year, and sales have reached a record high of six months. Through performance data, we can see that XTEP's rectification is not cyclical but structural. In order to repay shareholders, the board decided to pay a dividend of 12.5 Hong Kong cents per share.

    In addition, gross profit margin increased 0.9% in the first half of the year, mainly due to gross margin growth of 2.7%, and accessories gross margin increased by 0.9%. The substantial increase in gross profit rate of clothing is mainly due to: 1) the more functional clothing products, the higher the gross profit margin of general functional products. 2) we benefited from the national government's value-added tax from 16% to 13% in April 1st this year. But after that, we adjusted the list and the price of the tag respectively, and passed the favorable benefit from the value-added tax reduction to the downstream suppliers and consumers. XTEP not only keeps the original cost ratio, but also makes a conscientious enterprise.

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