• Q1 net income fell 8% to CAD7.1m
  • Revenue increased 17% to CAD50.4m
  • Gross margin declined to 25.2% from 27.3% last year

China-based sportswear manufacturer Zungui Haixi Corporation has seen its first quarter profit fall by 8%, after costs linked to new store openings offset higher sales.

"In our first year of being a public company, we have added almost 350 new retail outlets, increased revenue and maintained profitability," said Yanda Cai, chief executive officer. "With more than 2,000 retail outlets, store expansions continue to build our brand prominence and remain key to our growth."

The company's results were also impacted by the movement of the Chinese currency relative to the Canadian dollar.

Zungui Haixi makes and sells athletic footwear, apparel, accessories and casual footwear in the People's Republic of China.