• Q2 net profit down 42.9% to RMB20.2m
  • Revenue up 24.9% to RMB220.9m
  • CEO points to investment in future growth

Men’s casual apparel company China Xiniya Fashion recorded a 43% cut in its second quarter net profit, but grew revenues strongly amid a series of investments.

Gross margin for the period was 33%, up from 32.4% in the same period last year, and the company said it expected third quarter revenues to rise by 8-11%.

“Driven by our continued revenue and store growth, our second quarter financial and operational performance came in ahead of guidance,” said Qiming Xu, Xiniya chairman and CEO.

“Throughout the second quarter, we invested heavily in our future growth through a series of investments and our licensing transaction.”