Resilient Growth Across Dual Business Segments Drives the Group’s Steady Value Creation
Results Highlights
- Revenue amounted to RMB748 million, representing broadly flat year-over-year (YoY);
- Gross profit amounted to RMB511 million, representing a decrease of 1.0% YoY; Gross profit margin amounted to 68.3%, representing a slight decrease of 0.6 percentage points;
- Operating profit amounted to RMB207 million. Among this, operating profit of the China sporting goods segment was RMB26 million, and the operating profit of investment segment was RMB181 million;
- Net profit attributable to owners of the Company amounted to RMB204 million, representing an increase of 48.9% YoY;
- The Board has resolved to declare on distributing an interim and interim special dividend of RMB 2.08 cents per ordinary share for the six months ended 30 September 2025;
- Accumulative dividend and payout ratio since listing amounted to RMB8.13 billion and 87%, respectively.
HONG KONG, Nov. 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 interim results for the 6 months ended 30 September 2025 (the “Reporting Period”).
Financial Results
During the Reporting Period, the global economic recovery remained fraught with challenges. Despite severe external pressures, China’s economy demonstrated structural resilience underpinned by robust government policy support. China Dongxiang capitalised on market opportunities by optimising omni-channel deployment and strengthening synergies across its business systems to enhance efficiency and operational performance. At the same time, the Group deepened product innovation, delivering new products with novel designs, advanced materials, and superior functionality across brand portfolios through parallel upgrades in detail and value repositioning, thereby further consolidating its market position.
During the Reporting Period, the Group recorded revenue of RMB748 million, representing broadly flat YoY. Gross profit amounted to RMB511 million, representing a 1.0% decrease YoY. The gross profit margin decreased by 0.6 percentage point to 68.3%. The Group’s operating profit amounted to RMB207 million. Operating profit of China apparel segment was RMB26 million; the operating profit of investment segment amounted to RMB181 million; Net profit attributable to owners of the Company amounted to RMB204 million, representing an increase of 48.9% YoY. The Board of Directors has designed to distribute an interim and interim special dividend of RMB2.08 cents per ordinary share for the 6 months ended 30 September 2025, accumulative dividend and payout ratio since listing amounted to RMB8.13 billion and 87%, respectively.
Operational Highlights
Precision Marketing Strategies Drove KAPPA Brand Omnichannel Operations to Unlock Growth Potential
During the Reporting Period, KAPPA brand commenced the reconstruction of its integrated marketing processes, transforming promotional activities to concentrate on result-oriented promotion and pursuing comprehensive cost-effectiveness. This ensured brand resources were more effectively converted into sales and improved performance. In addition, KAPPA brand continued to focus on fashion sport products for popular products promotion, and prioritised three core categories, namely trend running shoes, skate shoes and retro-running shoes, thereby implementing synergic promotion of both fashion trend and brand development directions.
During the Reporting Period, KAPPA brand centred its strategy on driving in-store efficiency while strengthening membership engagement. It integrated store-visit content across social platforms with offline events in key cities, creating a result-based traffic linkage models and achieving dual improvements in brand image and commercial objectives. KAPPA brand also leveraged offline cross-sector partnerships to achieve YoY growth in new membership and member spending, delivering significant sales growth and membership asset accumulation. As at 30 September 2025, the Group had a total of 975 KAPPA stores.
Leveraging High-performance Fashion Ski Brand, PHENIX Brand Strengthened Its China Focus to Establish Dominance in the Ski Equipment Market
The Group’s phenix brand has positioned itself as a “high-performance fashion ski brand”. Its product lines are divided into professional ski products and lifestyle products, meeting the diverse needs of customers. During the Reporting Period, phenix brand has co-created with BeiDou Satellite Navigation System the “PARS” (phenix Active Rescue System), a satellite-based active rescue system, which has obtained utility model patent certification. A product launch is planned for the 2025/26 ski season with limited market release, continuously enhancing the brand’s technological capabilities and influence.
Additionally, phenix brand has become the official sponsor of the ski teams at Tsinghua University and Peking University. In the first half of this year, sponsorship partnerships were established with over 20 universities, with exclusive phenix co-branded ski products created for each institution. In offline professional channel deployment, phenix brand achieved comprehensive entry into indoor ski venues nationwide, including Taicang Snow World, Chengdu Sunac, Guangzhou Sunac, Shenzhen Huafa, Shanghai Yaosnow, and other indoor ski channels, successfully overcoming the seasonal limitations traditionally associated with ski apparel sales. In the e-commerce segment, phenix brand ski apparel secured a top-three industry position, with Mid-to-high-priced adult and children’s ski apparel products continued to maintain the leading player.
Investment Segment Adopted Prudent Value Strategy Amid Persistent Global Economic Slowdown
In the current global market environment, the Group targeted returns under reasonable risk levels by continuously adjusting and positioning its investment categories and directions. For existing investments, the Group will continue to advance exit strategies for primary investments to accelerate capital recovery, while moderately increasing investments in fixed-income projects to secure solid returns and managing risks. Moving forward, the Group will persist in consolidating its performance foundation through prudent investment strategies. While safeguarding the security of its investment portfolio, it will steadily enhance profitability and cash dividend capacity, delivering stable and predictable long-term returns to shareholders.
Ms. Cherry Chen, Chief Executive Officer, President, Co-Chairman and Executive Director of China Dongxiang, said, “The global economy remains complex, volatile, and replete with uncertainties. Underpinned by robust government macroeconomic policy support, China’s sports goods industry will sustain steady growth. China Dongxiang Group maintains an actively optimistic outlook on the prospects of China’s sportswear and leisurewear industry and firmly believes in the substantial growth potential of the domestic sports industry. Looking ahead, The Group will proactively respond to market dynamics, capitalise on development opportunities in niche segments, continuously launch innovative products, optimise omni-channel deployment and business systems, and leverage precision content marketing, continuously launching a series of diversified and innovative marketing campaigns to enhance consumer experience, and further elevating brand awareness and consolidating core brand competitiveness. Meanwhile The Group has consistently embedded social responsibility at its core business development, deeply practicing the concept of sustainable development to build a mutually beneficial and symbiotic industrial ecosystem.”
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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.