CHINA: Xiniya Fashion confident despite FY profit slump
- FY profit of CNY97.2m vs CNY175.5m
- Revenue fell 4.5% to CNY1.32bn
- Company remains confident in its outlook
Men's wear business China Xiniya Fashion says it remains confident in its outlook, despite reporting a 44.6% decline in annual profit.
Net profit came to CNY97.2m (US$15.6m) for the year to 31 December, compared to CNY175.5m in the same period of the prior year.
Revenue slipped 4.5% to CNY1.32bn from CNY1.38bn last year.
During the fourth quarter, net profit fell 11.9% to CNY49m from CNY55.6m, while revenues dropped 8.6% to CNY486.9m against CNY532.5m in the prior year.
"The softening of China's economy, menswear industry and the resulting increase in competition directly impacted our operational and financial performance throughout the year," said Xiniya CEO and chairman Qiming Xu.
"The situation gradually worsened during the year reaching what I believe the market may be the bottoming soon in 2014."
The company said it expects first-quarter earnings per ADS to range from $0.03 to $0.07, while revenue is forecast to fall by 7-11% over the prior year period.
"In summary, we are confident that we have made the necessary changes to our business model to sustain momentum during these difficult times," Xu added.
"We look forward to a market recovery and are well-positioned to seize future market opportunities to drive growth over the long term."
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