China Xiniya Fashion Limited, a leading provider of men's business casual apparel in China, reported financial results for the fourth quarter and for the full year 2013.
Fourth Quarter 2013 Highlights
- Revenue during the fourth quarter of 2013 decreased 8.6% to RMB486.9 million, from RMB532.5 million in the fourth quarter of 2012; within the prior guidance range of (12)% to (8)%.
- Gross margin was 29.4% in the fourth quarter of 2013 as compared to 33.3% in the fourth quarter of 2012.
- Net profit in the fourth quarter of 2013 decreased by 11.9% to RMB49.0 million, from RMB55.6 million in the fourth quarter of 2012.
- Earnings per ADS were $0.14 in the fourth quarter of 2013 as compared to $0.16 per ADS in the fourth quarter of 2012; exceeded the prior guidance range of $0.05 to $0.09 per ADS.
- Xiniya's network of authorized retailers had a net reduction of 52 retail outlets in the fourth quarter of 2013; consisting of 43 new retail outlets opened, and 94 retail outlets and one flagship outlet closed. As of December 31, 2013 the total number of authorized retail outlets was 1,583.
Full Year 2013 Highlights
- Total revenue in 2013 decreased by 4.5% to RMB1.32 billion, as compared to RMB1.38 billion in 2012.
- Net profit in 2013 decreased by 44.6% to RMB97.2 million, as compared to RMB175.5 million in 2012.
- Earnings per ADS were $0.28 in 2013, as compared to $0.49 in 2012.
- A net total of 127 retail outlets were closed during the full year of 2013, consisting of 213 new retail outlets opened, and 338 retail outlets and two flagship outlets closed.
The Company will hold its Fall/Winter Collection Sales Fair in mid April 2014, in Xiamen City, Fujian Province. 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 second 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.
Revenue in RMB for the first quarter of 2014 is expected to decrease by 11% to 7% compared to the first quarter of 2013. Earnings per ADS in the first quarter of 2014 are expected to be in the range of $0.03 to $0.07.