annual report 2014
I
FINANCIAL REVIEW
Revenue
Our Group has managed to sustain a healthy financial performance during the financial year, with revenue stood at RMB530.0
million. This, when compared to the preceding financial year, was lower by approximately RMB116.2 million or 18.0%.
Although the issue of excessive inventory as a result of industry-wide over-expansion has largely eased after the correction
and consolidation process in the past years, the operating environment of the China’s sportswear industry remains
challenging. High product homogenisation, active penetration by international sportswear brands and rapid expansion of
international fast-fashion brands have placed the China’s domestic sportswear brand under intense competition pressure.
The moderation of our Group’s financial performance is largely consistent with the industry trend, and is primarily influenced
by the external market factors.
During the financial year, our Group’s own proprietary brand products remained to be our primary source of income,
contributing approximately 74% (Year 2013: 77%) of the Group’s total revenue with the remaining 26% (Year 2013: 23%)
derived from OEM orders.
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Revenue Composition
(Year-to-date Ended 31 Dec 2014)
Revenue Composition
(Year-to-date Ended 31 Dec 2014)
‘XiDelang’
Sport Apparels,
& Accessories
33%
OEM Sport
Shoes
26%
‘XiDelang’
brand Sport
Shoes
41%
OEM Mode
26%
‘XiDelang’
Brand
74%
(Revenue Mix – 2014)
Revenue Composition
(Year-to-date Ended 31 Dec 2013)
Revenue Composition
(Year-to-date Ended 31 Dec 2013)
‘XiDelang’
Sport Apparels,
& Accessories
43%
OEM Sport
Shoes
23%
‘XiDelang’
brand Sport
Shoes
34%
OEM Mode
23%
‘XiDelang’
Brand
77%
(Revenue Mix – 2013)
Statement from the Managing Director/CEO (Cont’d)
