Xinguan: Standalone stores in China will boost margins, revenue

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KUALA LUMPUR: Xinguan International Sports Holdings Ltd is expected to increase its earnings in the next couple of years, once it comes out with more standalone stores around China.

Its chairman and chief executive Datuk Wu Qing Quan said the company will be garnering higher margins once it opens its own point-of-sales in department stores around China.

“At present we distribute products to 31 of our distributors who then sell them in the open market and this gives us a lower margin.

“By having our own point-of-sales, we can improve our margins and this will significantly increase our revenue as well,” Wu told reporters after an analyst and media briefing held at a hotel here yesterday.

He said by the end 2012, they will be having 50 to 75 stores that are directly owned by them in China. There are no plans to bring their brand Geartop abroad yet.

“By 2015, we hope to have 400 point-of-sales, selling outdoor casual wear, concentrating on men’s wear.”

Wu said the company plans to increase its apparel wear to be the main revenue earner by next year.

“By next year, we expect 60 per cent of our revenue to come from the apparel sector and the rest from selling men’s shoes,” he said.

Xingquan is a China-based company which is listed on the Main Market of Bursa Malaysia.

Wu said capital expenditure for this financial year stands at RM44 million and would mainly go for its expansion plans of setting up its own point-of-sales in department stores.

Wu also said that in its 12 months unaudited financial results which ended on June 30, the company and its group of subsidiaries achieved a revenue and profit before tax of RM844 million and RM158.3 million, respectively.

Business Times : nation

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