China'S Trend To Resume Growth Momentum In Same Store Sales In 1-2

China's trend (03818) Wang Zhiqiang, chief financial officer, said that in the first quarter of the 09 year, the same store sales increased by 16-17%, but the subsequent growth slowed down, so that the same store sales grew by only 1-2% in the same year, while the same store sales resumed growth momentum in 1-2 months.

For inventory handling, Wang Zhiqiang pointed out that the situation is ideal, and gross margin is believed to remain stable this year.

China's gross profit margin increased by 1.9 percentage points to 60.4% over the past 09 years, mainly due to the end of last year's international procurement business with lower profit margins and the increase in gross profit margins in the Japanese market.

Last year's average selling price (ASP) of the company fell from 161 yuan to 160 yuan, while shoes dropped from 184 yuan to 179 yuan. Wang Zhiqiang pointed out that this year's ASP will rise slightly, but I believe it is not a price increase, but mainly to reduce costs.

Qin Dazhong, chief executive, said that if there were no brand and project acquisitions, the capital expenditure this year would be 20 million yuan, which would increase 600-700 stores annually.

China has 3511 retail outlets last year, selling Kappa brand products, with a net annual increase of 703.

The company said today that orders for the third quarter of 2010 will increase by 22% annually.