Turnover Increased 51.6% to RMB 3,094.9 million Net Profit Surged 67.1% to RMB 628.3 million Financial Highlights (For the year ended 31 December) 2009 2008 Changes (RMB mn) (RMB mn) Turnover 3,094.9 2,042.0 +51.6% Gross profit 1,159.7 667.8 +73.7% Gross profit margin 37.5% 32.7% +4.8 pt Profit for attributable to equity shareholders 628.3 376.0 +67.1% Net profit margin 20.3% 18.4% +1.9 pt Basic & Diluted earnings per share (RMB) 36 cents 25 cents +44.0% Final dividend per share (HKD) 12 cents 9 cents --
HONG KONG, March 16 /PRNewswire-Asia/ -- Peak Sport Products Co., Limited ("Peak Sport" or the "Company"), together with its subsidiaries (the "Group"), stock code: 1968, a well-known branded sport products company in China, announced today its annual results for the year ended 31 December 2009.
Having grasped the opportunities offered by the growing domestic consumption in China and the successful listing on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 29 September 2009, Peak Sport delivered an impressive performance in 2009. Turnover of the Group increased significantly to RMB 3,094.9 millions, representing a growth of 51.6% over last year. The increase was mainly due to increased demand for Peak's products and continued expansion of its distribution network across China. Profit attributable to shareholders for the year surged by 67.1% to approximately RMB 628.3 millions. Basic and diluted earnings per share amounted to RMB 36 cents. The Board of Directors recommended the payment of a final dividend of HK12 cents per ordinary share, representing a dividend payout ratio of approximately 35.3%.
Gross profit of the Group amounted to RMB 1,159.7 millions representing an increase of 73.7% when compared to 2008. The increase in overall gross profit margin from 32.7% in 2008 to 37.5% in 2009 was mainly due to the enhanced recognition of the Peak brand products. As a result, the Group was able to raise its gross profit margin when it launched new products.
In addition to the enhanced recognition of Peak brand products by consumers, the Chinese government's massive stimulus package to combat with the global financial crisis, continuous urbanization of the second and third- tier cities and increased awareness of health and interest in sport activities by the general public, were other important factors causing the surge in the demand for Peak's products in 2009.
During the year, the Group added 1,027 authorized retail outlets making the number of authorized retail outlets reach 6,206 (2008: 5,179) at the end of 2009. These new retail outlets were mainly located in the second and third- tier cities.
Mr. XU Zhihua, Chief Executive Officer and Executive Director of Peak Sport, said, "We are very satisfied with our achievements in this year notably the listing of the Company's shares on the Stock Exchange on 29 September 2009 and the Company's impressive results for the year ended 31 December 2009."
Mr. XU concluded, "Going forward, the Group determines to reinforce its leading position in the basketball segment through more sponsorships and marketing arrangements with NBA teams and players, as well as other NBA- related resources. By leveraging its success in the basketball footwear market, the Group will launch more marketing and promotional campaign in other sport areas, such as those of tennis, football and running in 2010. Regarding its distribution network, the Group will add approximately 1,000 retail outlets and launch 100 basketball specialty retail outlets in 2010. The Group will also expand its retail network strategically in the first-tier cities to further enhance and strengthen its brand image. With our compelling and powerful brand, extensive distribution network and strong financial support, we believe that we are well-prepared to capture the rapid growing sport products market in the coming years."
About Peak Sport:
Peak Sport Products Co., Limited is a leading branded sport products company in China and has been listed on the Main Board of the Stock Exchange on 29 September 2009. According to a market survey conducted by Frost & Sullivan in November 2008, "PEAK" is among the top three most recognized sports footwear and basketball footwear brands in China. Peak Sport is primarily engaged in designing, developing, manufacturing, distributing and marketing sport products (including footwear, apparel and accessories) under the "PEAK" brand. As at 31 December 2009, the number of Peak Sport's retail outlets has exceeded 6,000 and the Company's products are exported to over 70 countries. Peak Sport executes a focused marketing and branding strategy on an international platform and has become an exclusive official marketing partner of the NBA in China since October 2007.
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SOURCE Peak Sport Products Co., Limited