10
I
annual report 2014
OVERVIEW FOR 2014
Overall, the China’s economy has remained relatively stable in 2014 with a lower but steady GDP growth of 7.4%. While there
have been signs of gradual recovery for the China’s sportswear industry after the industry undergone years of consolidation
and adjustment, the industry competition remained intense. The domestic industry players were generally under pressure
during the financial year, due to active penetration and rapid expansion into the China’s market by the international fast
fashion brands, the increasingly sophisticated consumer demands and the shift in the consumers’ spending sentiment
towards value-for-money rather than pure fashion/ brand-oriented impulse purchase.
Despite the overall challenging market conditions and operating environment within the sportswear industry in China, our
Group has managed to maintain a healthy financial performance, with revenue stood at approximately RMB530.0 million
while profit for the year stood at RMB49.6 million.
The moderation of our financial performance for year 2014, as compared to the preceding financial year, was generally
in line with the industry trend and primarily affected by the external market factors. Further elaborations on the financial
performance of the Group for the financial year under review are included within the “Statement from the Managing Director/
CEO” section of this Annual Report.
INDUSTRY OUTLOOK & PROSPECTS
The future prospect of the China’s sportswear industry remains promising, considering the following favourable factors:
• Favourable Chinese Government’s policies in curbing inflation, expanding domestic demand and accelerating the
development of the sports industry;
• Growing popularity of sports in China and rising awareness for healthy lifestyle;
• Increasing per capita disposable income of the urban residents; and
• Huge and growing populations in China
Looking ahead, our Group is cautiously optimistic that the China’s sportswear industry will gradually recover and stabilise
and slowly regain the growth momentum in the medium and long term. In the near term, our Group will continue to adopt
a prudent business approach to minimise the risk exposure and will utilise the resources effectively to stay vigilant and
responsive to the changing market conditions to ensure the long term sustainable development of the Group’s operations.
Product innovation, stringent quality control and brand awareness will continue to be core areas which our Group will
build on, in order to sustain our competitiveness against other industry players. “Value-for-money” will be the fundamental
principle driving our Group’s new product development, in order to accommodate to the customers’ expectation.
Statement from the Chairman (Cont’d)
