• H1 net loss of CNY129.9m (US$18.8m)
  • Sales plummet 93% to CNY15.1m
  • Declines due to inventory buyback

Men's wear business China Xiniya Fashion moved to a loss in its first-half on the back of a significant drop in sales.

Net losses in the six months to the end of June swung to CNY129.9m (US$18.8m) from earnings of CNY9.6m in the year ago period. The loss was primarily due to inventory buyback during the period. Before tax, losses amounted to CNY129.2m from a pre-tax profit of CNY13.3m.

Revenues during the six months plummeted 93% to CNY15.1m, as compared to revenues of CNY214.3m in the first half of 2015.

The drop, the company said, was again primarily due to the inventory buyback. During the first half, China Xiniya repurchased inventory of CNY294.2m from distributors, of which CNY124.5m was a reduction in revenue and CNY169.7m a reduction in provision for liability.

Excluding the inventory buyback in the first half, the company delivered around 1.32m units to its customers, compared with 1.8m in 2015.