XTEP'S Sales Will Exceed 5 Billion

Hongkong listed sporting goods company

Ye Qi said that he believed that in the next 3~5 years, the mainland's entire sports product market would grow by about 20%, while the group growth rate could outperform the big market.

He said that at present, the company signed a 5 year deep cooperation plan with the Premier League Bermingham team and expanded it through sponsoring international teams.

Prior to this, Switzerland published research report, said XTEP's advertising and promotion budget this year is only 500 million yuan, contrast.

Supplement:

XTEP International announced its year-round results for the year ended December 31st. It recorded a profit attributable to shareholders of 648 million yuan (RMB, the same below), an increase of 27.42% over the same period of 08 years, a profit of 29.79 points per share, and a final dividend of 10 Hong Kong cents and 5 HK cents with special interest rate of 09.

Chairman Ding Shuibo said that the consumption power of the two or three tier cities in the mainland increased. This year, the sporting goods industry can grow by 15%. The company has a high number of unit sales in the first quarter of this year, and is expected to maintain this level throughout the year.

Last year earned 650 million increase by 27%

The revenue grew by 23.7% to 3 billion 545 million yuan during the period. As the cost control was effective, the gross margin increased by 2 percentage points to 39.1%.

The gross margin of footwear increased by 3.5 percentage points to 39.1%, because the discount rate granted to agents decreased from 65% in 08 to 62%.

Last year, the average selling price of XTEP brand shoes increased by 8.5% to 79.4 yuan, and the wholesale price of clothing increased by 9.9% to 62 yuan.

Ding Shuibo pointed out that the order of the company in the fourth quarter of this year will be held in May 7th. It is expected that orders will increase in the fourth quarter.

Asked if he would raise the price this year, he pointed out that the annual factory price would increase slightly.

He Ruibo also disclosed that this year's capital expenditure is 2 to 250 million yuan, mainly for building new headquarters in Xiamen and increasing production lines.

In addition, last year, the company spent 420 million yuan on advertising and marketing, accounting for 9.1% of its revenue from 11.8% in 08 to 11.8%. He Ruibo said that the proportion of promotional expenses this year will be maintained at the level of 11% to 13%.

Capital expenditure exceeds 200 million this year.

At the end of last year, the number of XTEP retail outlets increased by 1047 to 6103, with a total of 30 flagship stores, and more than 400 stores in the mainland in the Disney brand.

The company plans to increase 800 to 1000 specialized stores in 2010 and increase 5 to 8 flagship stores in the golden section.

By the end of last year, the company's cash and bank balances were about 2 billion 500 million yuan.

In addition, XTEP appointed chief financial officer He Ruibo yesterday as executive director and announced the appointment of Chen Wei, former chief financial officer of Lining (2331), to become a non-executive director.

Ding Shuibo pointed out that he had no personal relationship with Chen Weicheng before, but he knew his ability and was confident that he would make contributions to the company in the future, such as strategic planning, enterprise integration and control.