Exceed Company Ltd., the owner and operator of the "Xidelong" brand, one of the leading domestic sportswear brands in China, released its financial results for the fourth quarter and the year ended December 31, 2013.
Financial Highlights – Fourth Quarter ended December 31, 2013 (unaudited)
-Revenue was RMB495.9 million (US$81.9 million), representing a 32.7% year-over-year increase.
-Gross profit was RMB135.3 million (US$22.3 million), representing a 32.8% year-over-year increase.
-Gross margin was 27.3%, which remained the same as the fourth quarter ended December 31, 2012.
-Operating profit was RMB31.6 million (US$5.2 million), representing a 137.6% year-over-year increase.
-Net profit was RMB21.7 million (US$3.6 million), representing a 104.7% year-over-year increase.
Financial Highlights – Full Year ended December 31, 2013 (audited)
-Revenue was RMB1,629.6 million (US$269.2 million), representing a 31.6% year-over-year decrease.
-Gross profit was RMB441.0 million (US$72.8 million), representing a 34.7% year-over-year decrease.
-Gross margin was 27.1%, representing a decrease of 1.2 percentage points year-over-year.
-Operating profit was RMB94.5 million (US$15.6 million), representing a 59.2% year-over-year decrease.
-Net profit was RMB65.5 million (US$10.8 million), representing a 67.1% year-over-year decrease.
Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "2013 proved to be a challenging year for Exceed and the Chinese sportswear industry in general. Our financial results for the fourth quarter and the year ended December 31, 2013 continued to be impacted by the weakening consumer demand in China for our products, which was primarily due to the ongoing global macroeconomic uncertainties and the slowdown of economic growth in China.
“However, we have seen signs of a slow market recovery in the domestic sportswear industry, and we believe that the excessive inventory or stocking, which bothered the domestic sportswear industry for quite some time, is gradually reducing. In response to the prevailing market conditions, we took a prudent approach to control the amount of orders placed by our distributors.
“In addition, we continue to enhance the efficiency of our distribution network by closing or relocating inefficient retail selling locations. We believe that these initiatives will help to reduce the overall inventory of finished products in the retail selling locations."