China Xiniya Fashion Limited a leading provider of men's business casual apparel in China, reported financial results for the fourth quarter of 2012 and for the full year of 2012.
Full Year 2012 Results
Revenue for the full year 2012 totaled RMB1,383.7 million, compared with RMB1,180.0 for the full year 2011, representing a 17.3% increase.
Gross profit for the full year 2012 was RMB461.4 million, compared with RMB404.9 million for the full year 2011. Gross margin decreased from 34.3% in 2011 to 33.3% in 2012.
Profit before taxation for the full year 2012 was RMB235.7 million as compared to RMB334.1 million for the full year 2011, representing a 29.5% decrease.
Profit for the full year 2012 totaled RMB175.5 million, compared with RMB251.7 million for the full year 2011, representing a 30.3% decrease. Earnings per ADS were $0.49 in 2012, as compared to $0.69 in 2011.
Fourth Quarter 2012 Highlights
Revenue in the fourth quarter of 2012 increased by 10.3% to RMB532.5 million, as compared to RMB482.8 million in the fourth quarter of 2011, which exceeded the prior guidance of 4%-7%.
Gross margin was 32.3% in the fourth quarter of 2012 as compared to 35.1% in the fourth quarter of 2011.
Profit before taxation in the fourth quarter of 2012 declined by 50.1% to RMB74.8 million as compared to RMB150.0 million in the fourth quarter of 2011.
Net profit in the fourth quarter of 2012 declined by 50.6% to RMB55.6 million as compared to RMB112.5 million in the fourth quarter of 2011.
Earnings per ADS were $0.16 in the fourth quarter of 2012 as compared to $0.31 per ADS in the fourth quarter of 2011, and were below prior guidance of $0.17-$0.19 per ADS.
Xiniya's network of authorized retailers had a net addition of 31 new retail outlets in the fourth quarter of 2012, consisting of 92 new retail outlets opened and 61 retail outlets closed, bringing the total number of authorized retail outlets to 1,710 as of December 31, 2012.
As of December 31, 2012, the Company, Mr. Qiming Xu - Xiniya's Chairman and Chief Executive Officer, and Mr. Chee Jiong Ng - Xiniya's Chief Financial Officer, had purchased, through the public market pursuant to a written plan, an aggregate of $1,678,958, $186,540 and $46,631 worth of ADSs, respectively, or 1,070,827, 118,990 and 29,759 ADSs, all at an average price of $1.57, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
About China Xiniya Fashion Limited
Xiniya is a leading provider of men's business casual apparel in China. The Company designs and manufactures men's business casual and business formal apparel and accessories, which are marketed under the Xiniya brand, and sells through its distribution network that includes 29 distributors.
