Kappa parent doubles profit
Sportswear brand Kappa as powered parent China Dongxiang to a stunning first half year result.
The company has doubled its profit to RMB 290 million on sales up 28.4 per cent to RMB 597 million.
The Hong Kong-listed company, which sells apparel internationally, says it is especially delighted with its growth in China segment for the first half of 2015, which has been beyond expectation.
“Revenue from Kappa brand of the China segment grew 46.4 per cent to RMB 464 million. Meanwhile, the gross profit margin of Kappa brand of the China segment rose 10.7 percentage points to 66.3 per cent as a result of the increase in sales of new products as well as improvements in the proportion of replenishment order and sales discounts,” the company said in a statement
China Dongxiang says the growth of Kappa in China was mainly due to the prudent management based on the previous successes in reforms, continuous efforts in consolidating the business models of “brand + product” and “brand + retail”, and the gradual launch of strategic measures focused on brand, operation, marketing and supply chain.
“Meanwhile, our young management team brought fresh energy and ideas to the group and helped to forge a solid foundation for the group’s long-term development.”