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K-Star's Fujian Jinjiang expands its footprints in China
Nov '10
K-Star Sports Limited announced that the Company through its wholly owned subsidiary, Fujian Jinjiang Dixing Shoes Plastics Co Ltd, is expanding its footprint in the People's Republic of China by setting up 6 new wholesale outlets in Northern China.

Executive Chairman and Chief Executive Officer of K-Star, Mr. Ding Jianping, commented, “We have started developing the Northern China market since the middle of this year and as at the end of October this year, K-Star has successfully set up 19 wholesale points, in which 6 are new outlets located in Urumqi, situated in the Xinjiang province of China, and the remaining in Russia.”

He added, “This is the first time K-Star sets up a wholesale point established within China and it marks the recognition and expansion of K-Star products to all the neighboring countries. K-Star will further leverage on its current wholesale base and identify qualified distributors to operate and manage the point of sales.”

Located in the northwest of China with a population of 2.5 million, the ancient Silk Road city of Urumqi acts as a major export market. Urumqi is situated near neighbouring countries like Russia, Kazakhstan and the Middle East countries. The six outlets in Urumqi are K-Star's first wholesale points within the PRC. China reported a balance of trade surplus equivalent to 27.1 billion USD in October of 2010.

Export growth has continued to be a major component supporting China's rapid economic growth. Exports of goods and services constitute 39.7% of the country's Growth Domestic Product ('GDP') with major exports of office machines & data processing equipment, telecommunications equipment, electrical machinery and apparel & clothing to main trading partners including the European Union, the United States, Japan, Hong Kong and South Korea1.

Ding said, “K-Star has always believed in the promising export potential of China. This confidence propelled us to begin our first venture of setting up internal wholesale spots in Northern China. We have confidence this will help promote our sportswear brand for the export market and capture a greater market share in the country. The new wholesale platforms are expected to prosper alongside the flourishing economy churned by the development of the West and North China markets. ”

Since its listing in June 2010 on the Main Market of Bursa Malaysia Securities Berhad, K-Star has been actively expanding its business in its quest to achieve its objective of being a long-term key player in the business by continuing to expand its annual production capacity, sales and marketing network, including setting up retail outlets in foreign shores.

Fujian Dixing, which was initially engaged in the production of shoe soles and canvas shoes, has broadened its business by venturing into the design, manufacture and distribution of sportswear besides its core business of canvas shoes.

K-Star currently has overseas distribution networks in Russia and Eastern European countries including Finland, Ukraine, Belarus, Poland, Finland, Romania, Hungary and the Czech Republic, among other nations. Fujian Dixing currently generates over 700 designs annually and manufactures approximately 7.9 million pairs of quality sports footwear, out of which 4.3 million pairs are distributed to their retail outlets in the PRC market in 2009.

In closing, Ding said, “We're looking forward to setting up of physical K-Star retail outlets in Urumqi by next year. We are optimistic that the government of China's investment in the development of the Western and Northern part of China will further drive the country's growth and increase its GDP as a whole. With that, we believe that K-Star is at an optimal position to ride on the growth. ”

K-Star Sports Limited

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