China Xiniya Fashion Limited, a leading provider of men's business casual apparel in China, reported financial results for the second quarter of 2013. The financial statements and other financial information included in this press release have been prepared in conformity with International Financial Reporting Standards.
Second Quarter 2013 Highlights:
-Revenue during the second quarter of 2013 increased by 0.9% to RMB222.9 million, as compared to RMB220.9 million in the second quarter of 2012, which is within the prior guidance range of (4)% to 1%.
-Gross margin was 28.5% in the second quarter of 2013 as compared to 33.0% in the second quarter of 2012.
-Profit before taxation during the second quarter of 2013 declined by 46.3% to RMB15.2 million as compared to RMB28.3 million in the second quarter of 2012.
-Net profit in the second quarter of 2013 declined by 55.5% to RMB9.0 million as compared to RMB20.2 million in the second quarter of 2012.
-Earnings per ADS were $0.03 in the second quarter of 2013 as compared to $0.06 per ADS in the second quarter of 2012, which exceeded the prior guidance range of $(0.03) to $0.01 per ADS.
-Xiniya's network of authorized retailers had a net reduction of 18 retail outlets in the second quarter of 2013; consisting of 55 new retail outlets opened, 72 retail outlets and one flagship store closed. As of June 30, 2013 the total number of authorized retail outlets was 1,658.
The Company plans on holding its 2014 Spring/Summer Collection Sales Fair in Xiamen, Fujian Province in September 2013. During the sales fair, the Company's distributors and authorized retailers will view the newest collection and place their orders. The Company will deliver the orders to its distributors primarily during the first half of 2014, upon which the distributors will then either deliver these products to their authorized retailers or sell them in their own retail outlets.
The Company placed new billboard advertisements across 22 provinces during the second quarter of 2013, with plans to gradually add more until the end of the year. These billboards are intended to enhance brand awareness of the Company's products and are specifically targeted at travelers and prospective authorized retailers.
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