In a preliminary statement, China's largest supplier of products for outdoor sports, Toread Holdings, reported an increase of 119.2 percent increase in its total revenues of 375.9 billion yuan renmimbi (€51,415.4m-$58,066.1m) in 2015. The strong growth was essentially due to the consolidation of its previously reported acquisitions of Asiatravel.com and Myve.cn in the area of travel and adventure services, which generated 52 percent of the revenues.
Revenues from the same outdoor products rose by 5.71 percent to RMB 180.6 billion (€24,704.4m-$27,890.5m), said Toread, complaining about fierce competition in the industry and the macro-economic slowdown in China. The segment's gross margin declined, the company added.
In spite of the higher turnover, operating earnings declined by 13.27 percent to RMB 28,179,800 (€3,856,902-$4,351,686) and the net profit fell by 10 percent to RMB 26,476,380 (€3,622,464-$4,087,892).
Preliminary data show that the group's sales increased by 33 percent to RMB 51.2 billion (€7,004.9m-$7,904.9m) in the first quarter of this year, ended March 31, but net profit is estimated to have decreased by 24 percent to RMB 7,140,000 (€976.923.4-$1,102,623.0). Outdoor products enjoyed a slight increase in sales, but margins declined. Toread said that competition in the industry intensified further.