Xingquan sees higher demand on China’s rise in spending

KUALA LUMPUR: The rising consumer and government spending in China is expected to lift demand for the outdoor casual wear company, Xingquan International Sports Holdings Ltd, which produces shoes, shoe soles and apparels, and accessories.

Citing a report from National Bureau of Statistics of China, its executive chairman Wu Qingquan said total retail sales of consumer goods reached 15,699.8bil yuan in 2010, a growth of 18.3% over the previous year.

“As such, we expect a continued uptrend in consumer spending and this would boost demand for our products. The ongoing projects in China will continue to boost the economy,” he told StarBizWeek in an interview yesterday.

Wu said the company started operating its new plant in Hui'an last month with four lines and planned to have six lines by end-June.

“Our products are currently available in 26 provinces in China with 2,100 stores. We plan to have 2,300 number of stores by the end of the financial year ending June 30, 2011 (FY11),” he said.

Shoe sole, shoe and apparels and accessories contributed 18.5%, 44.8% and 36.6% respectively to Xingquan revenue in the first half of FY11, Wu said, adding that it targeted a 20:40:40 mix next year.

He said the company had considered raising the price of its products to offset the rising raw material costs.

On the proposed Taiwan Depositary Receipts listing in Taiwan Stock Exchange, Wu said the company was still in the discussion with bankers and would announce the latest development in a few weeks.

source:thestar