China Dongxiang Announces FY2024/25 Annual Results
Stabilisation and Recovery in China Sporting Goods Business
Dual-business Synergy Fuels High-Quality Development of China Dongxiang
Results Highlights
- Revenue amounted to RMB1,680 million, representing a decrease of 3.7% year-on-year (YoY);
- Gross profit amounted to RMB1,152 million, representing a decrease of 3.4% YoY; Gross profit margin increased by 0.3 percentage point YoY to 68.6%;
- The Group's operating profit amounted to RMB244 million; Operating profit of the China sporting goods business segment was RMB51 million; Operating profit of investment segment achieved a turnaround to RMB 193 million;
- Profit attributable to owners of the Company amounted to RMB207 million, representing a significant improvement as compared to the loss of RMB639 million in the corresponding period last year;
- The Group reported a net asset value of RMB8.365 billion for its investment segment, representing an increase of 1.2% YoY;
- The board of directors of the Company recommended the distribution of a final dividend and final special dividend of RMB1.06 cents per ordinary share;
- The Group's accumulative dividend and payout ratio since listing amounted to RMB8.01 billion and 88%, respectively.
HONG KONG, June 26, 2025 /PRNewswire/ -- China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company", together with its subsidiaries, "the Group", HKEX stock code: 3818), the leading international sportswear brand enterprise in the PRC, announced its annual results for the 12 months ended 31 March 2025 (the "Reporting Period").
Financial Results
During the Reporting Period, China's macro-economy demonstrated strong resilience amidst a complex and volatile global environment, generally showing a trend of seeking progress while maintaining stability. The Group has been keeping abreast of the sports consumption trends of consumers and constantly optimising its products and services to meet the changing consumer needs and create greater value for consumers.
During the Reporting Period, the Group registered a revenue of RMB1,680 million, representing a decrease of 3.7% YoY. Gross profit amounted to RMB1,152 million, representing a 3.4% decrease YoY. Gross profit margin increased by 0.3 percentage point to 68.6%. The Group's operating profit amounted to RMB244 million. Operating profit of China sporting goods business segment recorded RMB51 million; operating profit of investment segment achieved a successful turnaround to RMB 193 million. Profit attributable to owners of the Company amounted to RMB207 million, representing a significant improvement as compared to the loss of RMB639 million in the corresponding period last year. The board of directors of the Company recommended the distribution of a final dividend and final special dividend of RMB1.06 cents per ordinary share. The Group's accumulative dividend and payout ratio since listing amounted to RMB8.01 billion and 88%, respectively.
Operational Highlights
KAPPA brand enhanced design aesthetics, driving efficient conversion through omni-channel collaboration
The Group's KAPPA brand integrated trendy design with sports technology to create products that align with the aesthetic preferences of contemporary consumers. It also satisfied consumers' pursuit of fashion expression while providing an exceptional wearing experience, truly realising the product concept of balancing aesthetics and comfort. During the Reporting Period, adhering to the philosophy of "Living through Sports", the KAPPA brand created a short film, namely "The Billing Statement of San Fen" won multiple industry awards. Meanwhile, in continuation of the previous year's theme of "Get Lucky", KAPPA brand held multiple offline store events to deeply embed the brand's IP content in consumers' minds and drive high-traffic brand promotion while achieving an efficient link from exposure to conversion, thereby enhancing the brand image and store sales. During the Reporting Period, the Group is committed to deepening the strategic presence of its omni-channel and the synergy of its business systems. By focusing on products and combining social media marketing, it enhanced the online and offline consumption experience and dynamic sales operation management. The footwear and accessories product lines performed exceptionally well in online sales, with several items ranked top sales across various platforms, driving the brand's continued penetration into younger demographics.
As of 31 March 2025, the Group had a total of 1,005 Kappa stores (excluding Kappa Kid's stores), representing a net decrease of 7 stores as compared to that as of 31 March 2024.
PHENIX brand innovated with category breakthroughs, advancing both professional skiing and lifestyle lines in parallel
The Group's phenix brand continued to focus on professional skiing product lines, offering technical ski equipment and functional apparel. It actively expanded its functional lifestyle product series and launched alk phenix product line. Moreover, the new phenix WARM HUG MID Shoes are designed to suit all scenarios, to extend its business beyond ski clothing. In marketing initiatives, the phenix brand strengthened its professional sports image and influence among young people through sponsoring the ski teams of Tsinghua University and Peking University. In addition, the phenix brand and Wanlong Ski Resort upgraded their collaboration to an "immersive brand symbiosis program" during the Reporting Period, which integrated the phenix brand elements and a new visual service experience in the ski resort, continuously increasing the brand's overall exposure. The phenix brand also partnered with the top domestic skiing event "Brothers Cup" to create a children's skiing themed flash mob experience, which demonstrated its sustained focus on children and youths' skiing.
Remained a prudent investment strategy to forge stable resilience across economic cycles
During the Reporting Period, the domestic and international capital markets showed signs of recovery. However, the root causes of market turbulence, including geopolitical frictions and declining global consumption demand, remain unresolved, suggesting continued market fluctuations in the near term. China Dongxiang have implemented cautious measures, including accelerating fund exits to enhance liquidity, increasing allocations to low-risk assets for contingency preparedness, diversifying portfolio risks, and closely monitoring macroeconomic trends, policy shifts, and geopolitical developments to dynamically adjust our investments. This approach ensures stable asset appreciation despite market uncertainties. As of March 31, 2025, the investment division's net assets stood at RMB8.365 billion, marking a 1.2% YoY increase. Since the commencement of the investment business, it has cumulatively contributed RMB7.5 billion in value appreciation, forging stable resilience across economic cycles. The Group remains steadfast in its disciplined strategy, grounded in a deep understanding of risk dynamics and long-term value creation principles, thereby strengthening portfolio resilience.
Ms. Cherry Chen, Chief Executive Officer, President, Co-Chairman and Executive Director of China Dongxiang, said, "China's sporting goods industry experienced a rapid recovery in 2024. It has led to a significant increase in public enthusiasm and participation in sports, which has fueled the industry's potential for growth. The rise in public health awareness and the trend of pursuing a quality lifestyle have also injected strong impetus into sports consumption. China Dongxiang holds an optimistic view on the prospect of China's leisure sportswear industry. Looking ahead, although the global sporting goods industry is expected to grow persistently, the growth is expected to slow down, and the industry will focus more on balancing growth with operational efficiency. China Dongxiang will adhere to its core corporate philosophy, seize market opportunities in China and enhance the Group's operational efficiency to create greater value for shareholders, striving to become a leader in China's sporting goods industry. Meanwhile, the Group will actively respond to the national call for industrial green transformation and the development of new quality productive forces, committed to developing a high-tech, high-efficiency as well as high-quality green sports industry to shape the Company's long-term competitiveness, resilience, and value creation."
About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China which has been listed on the Main Board of the Hong Kong Stock Exchange since 10 October 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 renowned Kappa brand in Mainland China and Macau. Since April 2008, the Group became the owner of the brand PHENIX. PHENIX is a well-known skiing brand in the international market.
Issued by Cornerstones Communications Ltd. on behalf of China Dongxiang (Group) Co., Ltd..
SOURCE China Dongxiang (Group) Co., Ltd.
Share this article