China Dongxiang Announced Retail Same-store Sales Growth for 1st Quarter of 2009
(13 April 2009) The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company"; stock code: 3818, together with its subsidiaries the "Group") announced that according to the Company's latest analysis, its retail same-store sales (“SSS”) for the 1st quarter of 2009 achieved a 6% growth against 1st quarter of 2008. The retail SSS growth for January and February 2009 combined was 18% against the same period of 2008. However, the retail SSS for March 2009 declined by 15 % against March 2008. The Company believes that the decline was mainly due to ongoing global financial crisis which hit consumers' confidence on the economic outlook of China. The impact on consumer spending was particularly obvious after the holiday season. The post Chinese New Year sales rebound in 2009 was much weaker than that in previous years.
As recent macro economic data of China indicates that the impact of the financial crisis may bottom out in the 1st quarter of 2009, we will closely monitor the retail SSS trend in the 2nd quarter of 2009 to determine if the downward trend in March 2009 is a one-off issue or a continuous one.
About China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise based in China and was successfully listed on the Stock Exchange of Hong Kong Limited on 10 Oct, 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally recognized Kappa Brand in China, Macau and Japan. Its products convey an active, fashionable and youthful image and are warmly welcomed by China’s fast growing and high potential consumers. The Group finished its acquisition of a Japan sportswear enterprise Phenix on 30 April 2008. The international brand “Phenix” has the greatest market share in the skiing and outdoor sportswear market in Japan.