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

July 13, 2018 - 06:02
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 - Theleading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd.("China Dongxiang" or "the Company", together with itssubsidiaries, "the Group", HKEx stock code: 3818) announces itsoperational data for the second quarter and the first half of 2018.


Forthe second quarter of 2018, the same-store-sales ("SSS") of Kappa stores(excluding Kappa Kids business and Japan business) for the overall off-lineplatform registered a mid to low single digit decrease year-on-year("YoY"),while the retail performance remained stable as compared to same period of lastyear. For the first half of 2018, the aggregated SSS and retail performanceboth 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 salesgrowth against the decline in forward orders by 20% to 25% YoY. For the quarterended 30 June 2018, the Company's inventory balance (in terms of retail tagprice) registered a low double-digit decrease compared to the end of 2017. Inaddition, duringthe same period, the Group was dedicated to engaging new regional retailerswith strong sales potential to provide driving force for the opening of morehigh-retail-performance stores for the second half of the year, while theretail performance of the 45 stores which had undergone renovation during theperiod was prominently improved. Going forward, the Company will also beclosing down stores with lower retail performance, ensuring the high SSS growthfor the year. In view of the above, we believe that the Kappa brand hassurvived its most difficult period, and are confident of the Group's futuredevelopment."

About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)

China Dongxiang (Group) Co., Ltd. is a leading international sportswearbrand enterprise in China which has been listed on the Main Board of the HongKong Stock Exchange since 10 October 2007. The Group is primarily engaged inthe design, development, marketing and wholesale of branded sportswear inChina. Currently, China Dongxiang owns all rights to the internationallyrenowned Kappa brand in China, Macau and Japan. On 1 May 2008, China Dongxiangcompleted the acquisition of PHENIX, a Japanese sportswear enterprise. PHENIXis the most popular ski brand in Japan with the largest market share, as wellas a well-known brand in the international market.