XINGQUAN PLANS TO INVEST RMB500 MLN

KUALA LUMPUR, Aug 23 (Bernama) -- Shoe manufacturer, Xingquan International
Sports Holdings Ltd, will invest 500 million renminbi or about RM231 million to
establish a manufacturing facility, expand sales network and build upon its
brand image.

Chairman and Chief Executive Officer Wu Qing Quan said Xingquan did not
foresee funding constraints as its cash assets, as of June 30, stood at RMB587
million.

He said RMB180 million would be spent to construct new factories, RMB80
million to acquire land and buildings and RMB40 million to purchase shoe
machineries.

"Our new factory at Huian Fujian Province will start production in the
first-quarter of next year," he told an analyst briefing here today.

The new factory with a floor space of 55,000 square meters would
increase production capacity for shoes to 10 million pairs, from six million
shoes now, and for shoe soles to 28 million pairs against 18 million shoes
currently.

Wu said Xingquan would allocate RMB100 million in the current financial year
ending June 2011 for marketing, sales and distribution network expansion.

The company, the first foreign entity to be listed on Bursa Malaysia
(Malaysia's stock exchange), aimed to increase the number of its stores in China
to about 2,300 stores, from 2,003 outlets operating as at June 30, Wu said.

"This year, we will concentrate on Tier 2 and Tier 3 cities where the
medium-to-high income population and mass market was similar to Guizhou," he
said.

He said Xingquan had an advantage in the outdoor casual wear industry as
there were only two China-listed companies focused in this segment.

"Outdoor wear is getting popular and we want to capitalise on this trend as
we have the first mover advantage," he said.

Wu said the company has set aside RMB100 million to build its "Addnice"
brand image, a leading Chinese brand for outdoor and indoor sports and leisure
shoes, apparels and accessories.

He said Xingquan would work with distributors to increase marketing
activities through billboard advertisements, television advertisement and
sponsoring outdoor activities.

On the outlook for raw materials, Wu expected prices to remain stable over
the next two years.
-- BERNAMA