HONG KONG, CHINA - Media OutReach - 17 January 2019 - The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company", together with its subsidiaries, "the Group", HKEx stock code: 3818) announces operational data for the fourth quarter of 2018 (4Q2018).
In 4Q2018, the retail performance of Kappa stores (excluding Kappa Kids business and Japan business) for the overall off-line platform recorded a high single-digit growth YoY, while the same store sales reported a low-single digit increase year-on-year ("YoY").
Mr. Zhang Zhiyong, Executive Director, CEO and President of China Dongxiang, said, "The Group's performance in 4Q2018 was in line with the management's expectation.The newly added distributors in the first half of last year, together with the direct-franchise model, contributed to the net increase in the number of Kappa stores while ensuring sufficient product supply, which resulted in positive retail sales growth. With the reform measures on distributors almost completed, wewill further optimise the structure of retail channels, manage and control our products in a more effective manner to accelerate turnover inchannel inventory in the future. We believe that the Group will benefit from a variety of initiatives implemented in distributors, channels and products, bringing significant achievements in operational performance."
About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China which has been listed on the Main Board of the Hong Kong Stock Exchange since 10 October 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally renowned Kappa brand in China, Macau and Japan. On 1 May 2008, China Dongxiang completed the acquisition of PHENIX, a Japanese sportswear enterprise. PHENIX is the most popular ski brand in Japan with the largest market share, as well as a well-known brand in the international market.
Issued by Cornerstones Communications Ltd. on behalf of China Dongxiang (Group) Co., Ltd..