Xidelang

Financials

Quarterly Report For The Financial Period Ended 30 June 2017

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

Revenue

Our Group recorded an encouraging revenue growth during the current quarter and financial period under review, with total sales stood at approximately RMB139.6 million and RMB273.3 million respectively, representing an improvement of 19.0% and 19.8% respectively as compared to preceding year corresponding quarter and period.

The improved performance during the current quarter and financial period under review was primarily attributable to increased sales of sports shoes in line with the gradual recovery in market demand, backed by the following:

(a) Higher sales of own-branding sports shoes as a result of increase in quantities sold. Total volume sold for our Group's own-branding sports shoes during the current quarter and financial period under review are detailed below: Analysis Of Performance

(b) Increased orders for ODM production. Total quantities sold under ODM production during the current quarter and financial period under review are detailed below.

Analysis Of Performance

Profitability

Our Group's profitability for the current quarter and financial period under review demonstrated an overall improvement as compared to the preceding year corresponding quarter and period, in line with the enhanced sales performance.

Gross profit stood at RMB24.3 million and RMB46.2 million respectively for the current quarter and financial period under review, increased by approximately 17.6% and 17.7% as compared to the preceding year corresponding quarter and period.

Backed by the improved operating profit and active monitoring of costs, our Group's profit after tax for the current quarter and financial period under review rose to RMB4.3 million and RMB8.1 million respectively, reporting over 100% increase as compared to preceding year corresponding quarter and period.

Outlook and Prospects

Our Group is cautiously optimistic that the prospects for the sportswear industry remain promising. Demands for sportswear within the domestic China market and the global markets are showing positive growth momentum.

Active measures and policies by the Chinese Government to promote the development of the domestic sports industry and boost domestic consumption, huge and rising population within China and increasing awareness on healthy lifestyle are amongst the favourable factors that underpin the industry growth in the medium and long term.

Demands for sportswear in the global markets are also estimated to be on positive growth momentum for the medium and long term, in line with the improving economic outlook for the advanced economies.

Although the industry is anticipated to experience certain degree of volatility in the near term, our Group expects the financial performance for the financial year ending 31 December 2017 to remain positive.