SHOEMAKER XINGQUAN TO FOCUS ON CHINA`S MIDDLE INCOME GROUP

KUALA LUMPUR, Dec 16 (Bernama) -- China-based firm Xingquan International
Sports Holdings Ltd has set its sight to focus on the fast-growing middle income
class, who will be the major driver of China's economy in the future.

Its executive chairman and chief executive officer Wu Qingquan said the
company was now targeting the second-tier and third-tier cities where the
emerging middle class is based.

It has also identified three new provinces -- Shaanxi, Gansu, and Ningxia --
to promote its brand, he said after the company's annual general meeting here
Wednesday.

Xingquan, listed on Bursa Malaysia, is a shoemaking company with a factory
in Jinjiang city, Quanzhou municipality, Fujian province.

Currently, it has a presence in 23 out of the 33 provinces in China.

Wu said purchasing power of the middle class is expected to increase in line
with the growth of the community in the country.

The middle-class, he said, is expected to reach 700 million by 2020 from
about 80 million in 2007.

To make further inroads in reaching the community, Wu said Xingquan has set
a target to have 3,000 points of sales in five years' time.

To date, it have 1,596 retail outlets located across the country.

To meet growing demand, Xingquan has started construction of its new
factory, which is expected to be completed in 2011, Wu said.

The new factory will have a total production capacity for 10 million pairs
of shoes and 28 million pairs of shoe sole products, he said.

-- BERNAMA