Net profit falls sharply at Exceed
Exceed, which owns sportswear brand Xidelong, has posted
lower sales and revenues for the second quarter ended June 30.
Revenue for the footwear and apparel company was RMB562 million ($88.3 million), representing a
24.2% year-over-year decrease.
Gross profit was RMB162 million, down 29.6% year-on-year,
and gross margin was 28.8%, down 2.2%. Operating profit fell 67.7% to RMB35.5
million, while net profit fell 81.1% to RMB30 million.
Shuipan Lin, Exceed's founder, chairman and CEO, said:
"As anticipated, our results in the second quarter were impacted by
weakening consumer demand in China, which was largely attributable to the
domestic and global economic slowdown.
"As a result, overall sales volume across our main
footwear and apparel product lines decreased, resulting in a decline in
revenue."
He added: "Despite the unfavourable operating environment,
we managed to outperform our revenue guidance for the quarter, supported by our
ongoing brand building and marketing initiatives which have continued to raise
the degree of market recognition of the Xidelong brand name and the average
selling prices of our products, especially in our footwear segment.
"While we expect to continue to operate under unfavourable
economic conditions for the remainder of this year, we believe we have the
right strategy in place to effectively manage our production and inventory
levels, maintain a lean operating structure and continue to strengthen brand
awareness."
