Ding Bo, chairman and chief executive of Xtep, said the company's new orders for the first quarter of next year rose 22% YoY. The performance is satisfactory. Dow said the company is optimistic about the future business prospects.
The company's overall gross margin increased 1.8 pts to 38.6% and net profit margin rose 0.2 ppt to 18.3% in the first half of this year. In terms of average selling price, the selling price of its own- brand sports shoes increased by 7.2% and that of sportswear by 2.7%. Other brands , Sneakers prices fell 8% during the period, the average selling price of sportswear recorded a 2.7% growth.
He Ruibo, chief financial officer and company secretary, expects the average selling price next year will still be 1% of the growth. He added that in respect of sports shoes, the ex-factory price to the total share price has been raised from 35% to 38%. He believes that the ex-works share could further rise to 40% next year.
Ho also pointed out that in the future, the company will gradually increase the proportion of outsourced production and reduce the proportion of self-production to about 30%.