It is recommended to distribute the final special dividend in RMB.0.51分 The cumulative dividend rate since listing is about88%

Business summary

• Revenue was RMB 174.4 million, up 3.9% year-on-year.
• Gross profit was RMB 119.2 million, up 12.0% year-on-year. Gross margin increased by 4.9 percentage points to 68.3% year-on-year.
• The operating profit of the sportswear division in China was RMB 106 million, a significant improvement compared to the operating loss of RMB 15 million in the same period last year. The investment business incurred a loss of RMB 726 million, resulting in a loss of RMB 639 million for the group's equity holders.
• It is recommended to distribute the annual final special dividend of RMB 0.51 per share of common stock for the twelve months ending March 31, 2024. The total cumulative dividend amount since the listing of the group has reached RMB 7.9 billion, and the cumulative dividend rate has reached 88%.
• The operating indicators of the sportswear division in China continue to improve: the net inventory value is RMB 286 million, a decrease of 14.9% year-on-year; the overall offline water scale for the year increased by 10%-20%, and the store efficiency increased by 20% - 30%.
• Financially stable: cash and bank balance is RMB 303.5 million; current ratio has improved year-on-year.

Hong Kong, June 26, 2024 / PRNewswire / - China Trends (Group) Co., Ltd.("China Trends" or the "Company", together with its subsidiaries "the Group", Hong Kong Stock Exchange stock code: 3818) announced its full-year performance for the twelve months ended March 31, 2024.("China Dongxiang" or "the Company", together with its subsidiaries, the stock code of Hong Kong Stock Exchange: 3818) announces its annual performance for the twelve months ended 31 March 2024 (the "Reporting Period").

Financial performance

During the reporting period, the global economy showed a weak recovery, coupled with external and internal factors affecting the financial market, which brought significant challenges to the global economy. The group's overall sales performance was jointly improved by improving the offline channel layout, optimizing the flexible supply chain structure, and strengthening the business system, and the outstanding performance of core products.

During the reporting period, the group's revenue was RMB 174.4 million, up 3.9% year-on-year. Gross profit was RMB 119.2 million, up 12.0% year-on-year. Gross margin increased by 4.9 percentage points to 68.3% year-on-year. The operating profit of the sportswear division in China was RMB 106 million, a significant improvement compared to the operating loss of RMB 15 million in the same period last year. The investment business incurred a loss of RMB 726 million, resulting in a loss of RMB 639 million for the group's equity holders. The board of directors recommends distributing an annual final special dividend of RMB 0.51 per share of common stock for the twelve months ending March 31, 2024. The total cumulative dividend amount since the listing of the group has reached RMB 7.9 billion, and the cumulative dividend rate has reached 88%.

Operational performance summary

Strengthening the supply chain The revenue of the sportswear division in China has increased.

The Group's brand KAPPA focuses on optimizing the category direct-operating model and improving the single-store efficiency, achieving phased results in improving the offline channel layout; at the same time, the online e-commerce platform is reformed, and the self-owned fast-response model ensures the efficient operation of the supply chain, helping the Group further optimize its operational efficiency, reduce operating costs, and turn the profit of the China sports equipment division from loss to gain, with a business profit of RMB 106 million. Among them, under the flexible supply chain mechanism, the revenue contribution rate and sold-out contribution rate of fast reaction plus single product both reached double-digit levels.

The Group continues to strengthen the brand competitiveness of KAPPA, practice de-advertising marketing strategies, focus on target consumer groups, take emotional marketing as the core, and create strong resonance offline activities. At the same time, actively seeking cross-domain cooperation, became the clothing sponsor of popular variety show "Irresistible", during the Reporting Period, which increased the exposure and attention of the brand.

As of 31 March 2024, the total number of KAPPA brand stores in the Group was 1,012 (excluding KAPPA children's wear business), a net decrease of 11 from 31 March 2023.

PHENIXRanked first in the industry for two consecutive years in online platform.

The Group's PHENIX brand has been focusing on high-end professional ski products. During the Reporting Period, PHENIX created multiple series of products, such as the NORGE Norwegian alpine skiing elemental series, the MISS PHENIX high-end women's fashion series, the SP27 and X-niX series that incorporate current cultural trends, and the alk phenix and +phenix series that focus on functional life. At the same time, PHENIX collaborated with several well-known domestic skiers to create the PHENIX FREERIDE training camp during the snow season of Reporting Period, providing professional and safe skiing courses for ski lovers, and promoting the development of China's ice and snow industry.

During the Reporting Period, the GMV of PHENIX's brand e-commerce channels increased by more than 80% year-on-year, and the traffic increased by more than 100%. In the Tmall industry ranking, PHENIX won the first place in the ski and snowboard dual board and the third place in the snowboard board, further consolidating its market position as a leading domestic skiing brand.

Ms. Chen Chen, Chief Executive Officer, President, Co-Chairman and Executive Director of China Dongxiangsaid: "Driven by the various stimulus measures of the Chinese government, new opportunities will be brought to the sports goods industry. China Dongxiang maintains a positive and optimistic attitude towards the prospects of China's sports, leisure and clothing industries, and the Group will seize market opportunities, continue to research and launch more high-quality products, bring customers a better consumer experience, and enhance the brand's competitiveness. At the same time, as a leading fashion sports brand in China, China Dongxiang has always attached great importance to ESG sustainable development, and in the future will follow the pace of China's government to promote green development, and is committed to establishing a sound governance framework and actively conveying the concept of a green earth to consumers."

About KE Holdings Inc.

About China Dongxiang (Group) Co., Ltd. (stock code: 3818)China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China. It was officially listed on the main board of the Hong Kong Stock Exchange on October 10, 2007. The Group is mainly engaged in design, development, marketing and distribution of branded sportswear in China. China Dongxiang now owns all the rights to the internationally renowned KAPPA brand in mainland China and Macau. Since April 2008, the Group has become the holder of the PHENIX brand. The PHENIX brand is a well-known ski brand in the global market.

This press release is issued on behalf of

Citigate Dewe Rogerson("China Trends" or the "Company", together with its subsidiaries "the Group", Hong Kong Stock Exchange stock code: 3818) announced its full-year performance for the twelve months ended March 31, 2024.For enquiries, please contact:

("China Trends" or the "Company", together with its subsidiaries "the Group", Hong Kong Stock Exchange stock code: 3818) announced its full-year performance for the twelve months ended March 31, 2024.
Investor Relations Department
Christina Low / Tiffany Liu
Phone: (86) 10-6783 6585
Email: ir@dxsport.com.cn

Cornerstone Communications Limited
Mujie Xiao / Kuanwei Liu
Telephone: (852) 2903 9292 / 2903 9287
Email: chinadongxiang@cscspr.com