Xtep earns record 1.24b yuan net profit

Chinese sportswear company Xtep International (1368) posted a net profit of 1.24 billion yuan (HK$1.33 billion) last year benefiting from revenue growth, marking a 20.2 percent annual increase and setting a new record high.

The company declared a final dividend of 9.5 HK cents per share, representing an approximately 19 percent rise year-on-year.

Xtep's revenue climbed to 13.58 billion yuan during the period, a 6.5 percent year-on-year gain, fueled by the performance of its core brand and robust growth of its professional sports segment.

The core brand's revenue rose by 3.2 percent to 12.33 billion yuan, while the professional sports segment experienced a growth of 57.2 percent, reaching 12.5 million yuan.

The company's gross margin for the year stood at 43.2 percent, an improvement of 1.4 percentage points over the previous year.

Xtep operated 6,382 adult branded stores and 1,584 Xtep kids stores in mainland China and overseas by the end of last year.

Faced with revenue and economic uncertainties, the group cited subdued consumer spending in mainland China and more cautious shoppers. In response, the brand has been stepping up discounts and promotions.

Additionally, Xtep announced that Yeung Lo-bun has been appointed as an executive director of the company and has resigned as the group's chief financial officer. Ding Lizhi, the eldest daughter of executive director and chairman Ding Shui-po, has been appointed to the CFO post.

DANNIE LI