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China Dongxiang Registers Mid to Low Single Digit Growth in 1H2018 in Same-Store-Sales and Retail Performance


HONG KONG, CHINA - Media OutReach - 13 July 2018 - 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 its operational data for the second quarter and the first half of 2018.


For the second quarter of 2018, the same-store-sales ("SSS") of Kappa stores (excluding Kappa Kids business and Japan business) for the overall off-line platform registered a mid to low single digit decrease year-on-year("YoY"), while the retail performance remained stable as compared to same period of last year. For the first half of 2018, the aggregated SSS and retail performance both recorded a mid to low single digit growth YoY.


Mr. Zhang Zhiyong, Executive Director, Chief Executive Officer and President of China Dongxiang, said, "For the first half of 2018, the Company managed to achieve retail sales growth against the decline in forward orders by 20% to 25% YoY. For the quarter ended 30 June 2018, the Company's inventory balance (in terms of retail tag price) registered a low double-digit decrease compared to the end of 2017. In addition, during the same period, the Group was dedicated to engaging new regional retailers with strong sales potential to provide driving force for the opening of more high-retail-performance stores for the second half of the year, while the retail performance of the 45 stores which had undergone renovation during the period was prominently improved. Going forward, the Company will also be closing down stores with lower retail performance, ensuring the high SSS growth for the year. In view of the above, we believe that the Kappa brand has survived its most difficult period, and are confident of the Group's future development."

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.

Media OutReach