• Net profit up 5.2% to CNY94.7m
  • Sales rose 15.7% to CNY741.5m
  • Apparel revenue up 19.9%

Chinese sportswear brand Exceed saw second-quarter net profit grow on the back of strong sales growth in its apparel division.

For the quarter ended 30 June, net profit grew 5.2% to CNY94.7m (US$14.7m), while sales increased 15.7% to CNY741.5m.

The company said that apparel revenue increased 19.9% over the quarter to reach CNY369m. The company attributed the growth to a 10.7% increase in volumes and an 8.2% increase in average selling price.

It said that new products combined with an increase in the size of its stores has attracted more customer traffic.

The company said it is working to increase its internal manufacturing capacity and expand its network of regional sales and logistics centres in order to address issues in the industry that have led to weakened bargaining power, supply chain instability and gross profit margin pressure.

As part of moves to address labour shortages, Exceed plans to build staff quarters to improve the working and living environments of its employees and bolster staff retention.

It also reaffirmed plans to capitalise on the "abundant labour supply in the inner and western parts of China" through the construction of new production facilities and the acquisition of other facilities. The company plans to acquire existing shoe sole and apparel manufacturers to "enhance our internal productivity".