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Xtep looking for acquisitions in clothing, footwear

08-17-2011 15:18 BJT

HONG KONG - Xtep may invest in smaller rivals in China, Chairman and Chief Executive Ding Shui Po said in a phone interview on Tuesday from Hong Kong. "We'll never give up our plan" to expand through acquisitions, Ding said, declining to say how much the company is prepared to spend or provide other details.

The company said it had about 1.8 billion yuan in cash ($282 million) at the end of June. First-half net income grew 25 percent to 466 million yuan on sales of 2.6 billion yuan, Fujian-based Xtep said in a statement on Tuesday. Revenue climbed 26 percent to 2.57 billion yuan, according to a filing to the Hong Kong Stock Exchange.

The sportswear maker, which provides jerseys and sports products to the English Premier League football club Birmingham City, targets customers in smaller Chinese cities and prices its sports footwear and clothing lower than competitors Li Ning Co and China Dongxiang Group Co.

As of the end of June, Xtep had 7,438 retail outlets, up 407 since the beginning of this year, according to the statement.

China's sportswear industry will grow between 15 and 20 percent this year and the next, and the growth rate is "sound and healthy" given the industry's large consumer base, said Ding.

Xtep may invest in smaller rivals in China, Chairman and Chief Executive Ding Shui Po said in a phone interview on Tuesday from Hong Kong. "We'll never give up our plan" to expand through acquisitions, Ding said, declining to say how much the company is prepared to spend or provide other details.

The company said it had about 1.8 billion yuan in cash ($282 million) at the end of June. First-half net income grew 25 percent to 466 million yuan on sales of 2.6 billion yuan, Fujian-based Xtep said in a statement on Tuesday. Revenue climbed 26 percent to 2.57 billion yuan, according to a filing to the Hong Kong Stock Exchange.

The sportswear maker, which provides jerseys and sports products to the English Premier League football club Birmingham City, targets customers in smaller Chinese cities and prices its sports footwear and clothing lower than competitors Li Ning Co and China Dongxiang Group Co.

As of the end of June, Xtep had 7,438 retail outlets, up 407 since the beginning of this year, according to the statement.

China's sportswear industry will grow between 15 and 20 percent this year and the next, and the growth rate is "sound and healthy" given the industry's large consumer base, said Ding.

 

 

Editor:Yang Jie |Source: China Daily

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