Footwear manufacturer China Shoe Holdings posted a net income of $196,000 in the second quarter, an increase of 485% compared to the three months ended 30 June 2006.

Revenue for the second quarter totalled $1.95m, an increase of 52.3% compared to the prior year period.

China Shoe has previously announced its plan to open retail stores in the near future.

Gu Xianzhong, the president and CEO of the company said: "We are pleased to announce the 2Q result that reflects our growth for the past successive quarters, and we fully expect the continued growth in the future.

"With the solid foundation, we are also confident that China Shoe is poised to successfully enter the PRC retail market."