Exceed's founder enjoys success of 'happy lifestyle'
06 Apr '11
3 min read
Exceed Company Ltd, the owner and operator of "Xidelong" brand – one of the leading domestic sportswear brands in China, released its financial results for the fourth quarter and full year ended December 31, 2010.
Financial Highlights – Fourth Quarter ended December 31, 2010 (unaudited)
• Revenue was RMB 656.0 million (US$99.4 million)(1), representing a 9.4% year-over-year increase. • Gross profit was RMB 198.4 million (US$30.1 million), representing a 10.9% year-over-year increase. Gross margin increased to 30.2% from 29.8% for the same period in the fiscal year 2009. • Operating profit was RMB 86.1 million (US$13.0 million), representing a 1.8% year-over-year increase. • Net profit was RMB73.0 million (US$11.1 million), representing a 9.0% year-over-year decrease.
Financial Highlights – Full Year ended December 31, 2010 (audited)
• Revenue was RMB2,698.9 million (US$408.9 million), representing a 29.9% year-over-year increase. • Gross profit was RMB841.6 million (US$127.5 million), representing a 37.3% year-over-year increase. Gross margin increased to 31.2% from 29.5% for the same period in the fiscal year 2009. • Operating profit was RMB409.8 million (US$62.1 million), representing a 45.7% year-over-year increase. • Net profit was RMB351.6 million (US$53.3 million), representing a 41.8% year-over-year increase.
The Company's reporting currency is Renminbi. RMB numbers included in this press release have been translated into U.S. dollars at the rate of USD1.00 = RMB6.60, the exchange rate refers to the exchange rate as set forth in the H.10 statistical release of the Federal Reserve Board, on December 31, 2010. The translation of amounts from RMB to United States dollars is solely for the convenience of the reader. No representation is made that RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on December 31, 2010.
Mr. Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "We are pleased to report a strong top- and bottom-line performance for the fourth quarter and full year 2010, supported by continued execution of our strategy to develop and enhance our brand, our products and our sales channels. Our results demonstrate the success of our 'happy lifestyle' brand positioning, which has helped us to gain traction among a wide range of consumers, including the younger generation, which represent the fastest growing segment of the sportswear market in China. This growing brand recognition, coupled with the expansion of our product offering, has resulted in increased customer demand and higher average selling price ("ASP") of our products.
"The strong demand from consumers has supported the continued expansion of the Xidelong retail network, as reflected by the increase in both the number and size of retail stores in 2010. In addition, we have continued to broaden our geographical footprint, especially within the rapidly growing third-tier cities in China, which will enable us to capture the opportunities from the rising disposable income in these regions.
"Our strong performance in 2010 and the increased demand for our products, as demonstrated by the orders placed for our products in our recent 2011 autumn sales fair, indicate continued opportunities for growth. We will aim to capitalize on these opportunities by executing our proven strategy, focusing on cost controls and increasing brand awareness, which we believe will allow us to continue our revenue and income growth in the year ahead."
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