Rapid growth at China Dongxiang
Sales almost doubled at sportswear firm China Dongxiang (Group) Co Ltd in 2007, with consolidated sales totalling RMB1.71 billion ($0.24 billion).
Sales of apparel, footwear and accessories recorded growth of 88%, 136% and 127%, respectively. Having worked hard to expand its footwear business, the company reports that its shoe division now accounts for 24% of the business compared with 20% in 2006. Apparel sales declined proportionally from 76% to 72%, while accessories sales remained flat at 4.7%.
Chairman, Chen Yihong, says: "Gross margin and net margin attained high levels of 58.5% and 42.9% respectively. The unit average selling prices and total sales also showed remarkable growth. Meanwhile, we actively expanded our distribution and retail network by adding 807 Kappa retail outlets to bring the total to 1,945 retail outlets, covering all major provincial capital cities and many other large urban areas and towns in the PRC."
