CHINA: Xiniya Fashion third-quarter net profit down 21.1%
Men's casual apparel company China Xiniya Fashion saw third quarter net profit drop despite sales increasing over the period.
The company said net profit fell 21.1% to CNY74.8m over the quarter ended 30 September . Revenue increased 15.7% over the quarter to CNY417.9m, exceeding prior guidance of 8-11% growth.
"On the back of continued store expansion and the rapid conversion of our authorized retailer- managed retail outlets, we were able to beat guidance with another strong quarter of top line revenue growth," said chairman and CEO Qiming Xu.
"Despite the economic softening in China, we were able to adapt to the current situation and push through numerous initiatives we have put in place to ensure the long-term, sustainable development of our business. Following our bi-annual sales fair in September 2012, where the total value of purchase orders grew slightly despite distributors' and authorized retailers' cautionary approach, we reduced the prices on our collections to improve the price competitiveness of our products, improve product turnover and reduce inventories during the slowdown.
"We conducted training courses for distributors and authorized retailers to strengthen retail management and enhance profitability as the refurbishment of our existing retail outlets continued as we adjust our image to meet changing consumers taste. We are pleased with the flexibility we have shown during the quarter as we push through these difficult times. I remain confident in our ability to seek new growth opportunities as we enhance our brand value and provide our customers with the high-quality products they have come to expect."
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