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2011-6-20
In the first quarter of 2011, Xiniya's authorized network of retailers added 42 new retail outlets, as compared to 35 new retail outlets added in the first quarter of 2010. In 2010, 39% of the new stores for the year were opened in the first half of the year, while 61% of the new stores were opened in the second half. The total store count as of March 31, 2011 was 1,445. The Company places significant emphasis on opening quality stores and maintaining sustainable store expansion rates.
Gross profit increased 35.0% to RMB53.6 million in the first quarter of 2011 from RMB39.7 million in the first quarter of 2010. Gross margin was 33.6% compared with 32.5% in the first quarter of 2010 – an increase of 1.1%. The ASP increase of 19.2% in the first quarter of 2011 helped to offset higher materials and labor costs.
Interest income was RMB1.9 million in the first quarter of 2011 as compared to RMB0.2 million in the first quarter of 2010.
Selling and distribution expenses in the first quarter of 2011 increased significantly due to an increase in advertising and promotional expenses. Advertising and promotional expenses were RMB7.2 million, or 4.5% of revenue in the first quarter of 2011, compared with RMB0.8 million, or 0.7% of revenue, in the first quarter of 2010. These higher expenses mainly related to the sponsorship agreement with the Company's spokesperson, Jacky Cheung, one of the leading pop stars in China, sponsorship of Jacky Cheung's concerts, and advertising on Chinese national television channels, CCTV5 and CCTV12.
Source:China Xiniya Fashion Limited
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浙公網安33010602010414
