Shoe maker Zungui Haixi posts Q4 and full-year double-digit profit growth
Zungui Haixi (TSX: ZUN), a China-based manufacturer of sportswear and casual footwear, posted double-digit growth in sales and profits for the fourth quarter of 2010 and the entire fiscal year.
For the fourth quarter, company sales increased 14% year-over-year to CDN $50.6 million. Net income went up 12% to CDN $8.6 million, while earnings per diluted share declined to 14 cents in the fourth quarter compared to 15 cents for Q4 2009. The decline in earnings per share was primarily due to a 25% increase in the average number of shares outstanding during the period.
For fiscal year 2010, the company recorded sales of CDN $163.9 million, compared to CDN $138.9 million for the prior year. Net income totalled CDN $27 million, a 17% increase from 2009.
Shoe production also increased during the year by 38%, to 11 million pairs of shoes.
During the year, Zungui opened a total of 249 stores, bringing the number of retail stores operated by the company to 1,931.
At the end of the fiscal year, the company had about CDN $0.13 million in current assets, amply covering liabilities due within the next year by 3.5 times.
On the Toronto Stock Exchange, Zungui's share price rallied 7% to trade at $2.60 as of 2:36 pm ET.
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