China Xiniya Fashion widens FY net loss
- FY net loss widens to CNY600.3m (US$91.7m)
- Revenues increase by 24.2% to CNY472.2m
China Xiniya Fashion has widened its net loss for the last fiscal year but said it was hopeful of seeing positive results from the implementation of a new compressed business model designed to improve supply chain efficiency.
The men's wear business said losses in 2015 amounted to CNY600.3m (US$91.7m) from a loss of CNY170.7m in the prior year.
Revenues, however, increased by 24.2% to CNY472.2m, as compared to CNY380.2m in 2014. The company had a net total of 394 retail outlets close during 2014, consisting of 127 new retail outlets opened and 521 retail outlets closed.
"We executed the business model compression strategy during the second half of 2015 by acquiring a retail network managed by five distributors for many years," said chairman and CEO Qiming Xu. "The business model compression strategy removed a distributor layer within the business model. With the compressed business model, those authorised retailers could be more price competitive in the retail market.
"The company has direct access to those authorised retailers, is able to improve supply chain efficiency, could have better information on consumer demand and could introduce more apparel faster to the market. While the full implementation of a new compressed business model will take time to bear fruit, we are confident that we will see positive results from this strategy in a highly competitive apparel market."
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