Exceed Company revenues plunge 48.8% in Q4

 

“Although this strategy has negatively impacted our revenue in the near-term, we believe it will help to strengthen our competitive positioning over the mid- to long-term and allow us to maintain our pricing power. By combining this strategy with our strategy of focusing on marketing, promotions and new product developments, we believe that we have successfully maintained our customer appeal, which would enable the Company to gain market share once consumer demand picks up."

Exceed Company, the owner and operator of the "Xidelong" brand and one of the leading domestic sportswear brands in China, released its financial #

 

"While we have not been immune to the recent market downturn, we believe that the Company remains fundamentally strong, and the Chinese sportswear industry continues to present significant long-term growth opportunities. Our brand image and product lines resonate with young and value-conscious shoppers looking for fashionable and functional sportswear products at reasonable prices, helping us to remain a leader in ourtarget market segment.

 

“ We have maintained profitability throughout the market downturn, and continue to have significant financial resources at hand. We expect market conditions to remain challenging through the first half of 2013, and as a result, we will continue our current approach towards production and delivery. In addition, we will remain focused on maintaining our lean operating structureby effectively managing costs and on continuing to strengthen brand awareness. We believe that these measures will allow us to maintain a competitive position in this difficult market environment and place the company in a favorable position to grow over the long-term."

 

Apparel

Sports apparel accounted for 46.3% and 50.3% of revenue for the fourth quarter and for full year of 2012, respectively, and principally includes sports tops, sports pants, jackets and track suits. Our apparel production is entirely outsourced. 

 

Revenue from apparel decreased by 30.8%, from RMB1, 731.5 million for 2011 to RMB1, 198.2 million (US$192.3 million) for 2012. This decrease was primarily due to a 26.3% decrease in sales volume and a 6.1% decrease in ASP. The decrease in ASP was mainly due to the increase in thesales of lower priced spring/summer collection apparel as a percentage of total apparel sales. 

 

For 2012, lower priced spring/summer collection apparel accounted for 51.3% of the total apparel sales, compared with 43.8% for 2011. To a lesser extent, the decrease in ASP was also attributable to the introduction of a range of popular priced apparel products to target the mass marketand to better align with customer preferences.

Revenue from apparel was RMB173.1 million (US$27.8 million) for the fourth quarter of 2012, a decrease of 51.4%, from RMB355.9 million for the same period in 2011.