Quarterly Report For The Financial Period Ended 30 June 2018

Financials Archive

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Condensed Consolidated Statement Of Comprehensive Income (Unaudited)

Income Statements

Condensed Consolidated Statement Of Financial Position (Unaudited)

Financial Position

Analysis of Performance

Analysis Of Performance


Our Group recorded total revenue of approximately RMB115.34 million and RMB218.16 million respectively during the current quarter and financial period under review, decreased by 17.4% and 20.2% respectively as compared to preceding year corresponding quarter and period.

The moderation in sales performance during the current quarter and financial period under review was primarily due to softer demand for sports shoes, with lower quantities sold for both own-branding division as well as ODM production division as illustrated below:

Own-Branding Division

Analysis Of Performance

ODM Production Division

Analysis Of Performance


Our Group’s gross profit stood at RMB21.2 million and RMB38.3 million respectively for the current quarter and financial period under review, lower by approximately 12.7% and 17.1% as compared to the preceding year corresponding quarter and period; as a result of lower sales recorded.

Notwithstanding the moderation in sales performance and gross profit, our Group’s profit after tax for the current quarter and financial period under review rose to RMB5.8 million and RMB10.4 million respectively; mainly attributable to the active monitoring of costs by our Group. In particular, our Group has realigned the marketing strategy and revised downward the advertisement costs in view of the uncertainties within the operating environment, which has resulted in cost-saving of approximately RMB5.9 million and RMB11.7 million for the current quarter and financial period under review.

Outlook and Prospects

Our Group is cautiously optimistic that the prospects for the sportswear industry remain promising, although the industry outlook for the near term is anticipated to experience certain degree of volatility.

Demands for sportswear within the domestic China market and the global markets are expected to be gradual growth momentum, backed by the following catalysts:

  1. Active measures and initiatives by the China Government to promote the development of the domestic sports industry and boost domestic consumption. These measures and initiatives are expected to contribute positively to the sports industry growth in the medium and long term;

  2. Huge and rising population within China, particularly with the implementation of two-child policy;

  3. Rising disposable income per capita for China citizen; and

  4. Increasing awareness on healthy lifestyle and growing popularity of sports

Barring any unforeseen circumstances, our Group expects the financial performance for the financial year ending 31 December 2018 to remain positive.