Highlight XiDeLang targets double digit growth in FY14

by **Cals** Thu 16 Jan 2014, 17:25

Highlight XiDeLang targets double digit growth in FY14

Business & Markets 2014

Written by Wei Lynn Tang of theedgemalaysia.com

Thursday, 16 January 2014 14:23

KUALA LUMPUR: China-based XiDeLang Holdings Ltd (XiDeLang) is targeting a double-digit growth for its revenue and net profit for current financial year ending December 31, 2014.

Ding Peng Peng, managing director and chief executive officer of XiDeLang, said he is optimistic of the prospects this year, as he expects the sports industry in China to pick up in the second half of the year.

Currently, the locally-listed Chinese company is selling 85% of its sports apparels, shoes and related products in China and exports 15% to Europe and US. There are no sales to Malaysia yet.

Speaking to the media at the signing of a distributorship agreement with Universal Fitness and Leisure Sdn Bhd (UFL) earlier today, Ding said the company expects this partnership to contribute RM50 million in revenue and RM10 to RM20 million in net profit in its first year of operations in 2014.

Through the partnership, XiDeLang will introduce its sports shoes, apparels and accessories products into the Malaysian market. UFL holds distributorships of several premier brands of sporting products, and has a dealer network of about 300 in Malaysia.

In the pipeline is the opening of 10 exclusive stores in Malaysia this year.

The first shipment of the China-manufactured XiDeLang products into Malaysia is planned for next month, for availability in shops and departmental stores by second quarter of the year.

“Setting foot in Malaysia has always been our business plan since the day we were listed. This idea has finally materialised as the timing is now right; the Malaysian market is mature enough. We feel it is crucial to have our products present in the Malaysian market,” he said.

Ding said that the company has identified Malaysia as its Asean hub, and has plans to export its products to other emerging markets such as Indonesia, Myanmar, Thailand, and Vietnam in the next three years.
In addition, Ding also said the company is looking to purchase a land of 15 to 20 acres to set up a plant and warehouse in Malaysia, to be funded by internal funds.

Currently, the company sits on RMB323.5 million as at Sept 30, 2013.

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Moving forward, Ding said that the company will continue to expand its original equipment manufacturing (OEM) segment, which currently contributes 15% to the company’s revenue.

XiDeLang currently exports its products to Europe and US, through its OEM operations.

XiDeLang’s target segment falls within the age group of 15 to 35 years old, and it signs on teenage celebrities in China to market its products.

At noon break, XiDeLang’s share rose 6.5 sen or 11.5% to 63 sen per unit on trades of some 18.6 million shares.