China Dongxiang (Group) Co., Ltd., which owns the rights to the Kappa brand in mainland China and recently bought a Japanese ski brand, reported revenue grew 28.4 percent to RMB 597 million ($93.2 mm) for the six months ended June 30. Net profit increased 202.1 percent, year-on-year, to RMB 290 million ($45.4 mm).
Revenue from the Kappa brand grew 46.4 percent to RMB 464 million ($72.6 mm). Meanwhile, the gross profit margin of Kappa brand in the China segment rose 10.7 percentage points to 66.3 percent as a result of the increase in sales of new products as well as improvements in the proportion of replenishment orders and sales discounts.
The growth of Kappa in the China segment was mainly due to the prudent management based on the previous successful reforms, continuous efforts in consolidating the business models of “brand + product” and “brand + retail,” and the gradual launch of strategic measures focused on brand, operation, marketing and supply chain.
Dongxiang owns the rights to the Kappa brand in Mainland China, Macau and Japan. On May 1, Dongxiang completed the acquisition of Phenix, the most popular ski brand in Japan.
