China Dongxiang earnings climb to 1b yuanBusiness | 25 Nov 2020 2:26 pm
Mainland sportswear company China Dongxiang (3818) said net profit jumped by 4.9 times to 1.12 billion yuan (HK$1.32 billion) for the first six months of this year.
The company declared an interim dividend of 5.69 fen per share. Basic earnings per share were 19.04 fen.
Revenue was unchanged at 899 million yuan. Sales from the Kappa brand in the mainland grew by 13.2 percent to 748 million yuan, but sales in Japan slumped 44 percent to 84 million yuan.
Gross profit margin fell by 5.3 percentage points to 60.1 percent.
The company expects stable growth in the second half of the financial year.
China Dongxiang operates 1,153 Kappa stores, excluding Kappa Kid’s stores and Kappa Japan, an increase of 24 stores from end-March. More underperforming stores are to be closed.
Shares of China Dongxiang picked up by 8.64 percent to HK$0.88 as of 2:00pm.