Six-month net income at the footwear producer and retailer fell 26% to HK$39,464,000 ($5.1 mm) versus HK$53,640,000 for the six months ended Sep. 30. Revenues increased 22% to HK$1,189,649,000 ($153.4 mm) from HK$975,951,000, but gross margin was off 270 b.p. to 13.1% as the net profit margin slipped 220 b.p. to 3.3%.

Kingmaker said it has reaped financial benefits from its strategy to diversify its production base to lower-cost locations in southern Vietnam and Cambodia. Nonetheless, input cost inflation and a 25% ... Log in to view full article.