China Xiniya Fashion (NYSE:XNY) is a Chinese company which designs, makes, and sells business casual and business formal clothing for men. The company sells its products through 26 distributors and 24 department store chains. China Xiniya focuses on professional men between the age of 25 and 45. According to Frost & Sullivan, Xiniya ranked 5th in sales within the Chinese men's business casual apparel market.
Xiniya expects that the continue rise of China's middle class will push more men into its target market. The Chinese men's apparel market is one of the largest in the world and was larger than the one in the US in terms of sales as of 2009. Xiniya expects that the rise in disposable income to this growing middle class will allow it to market its products to increasingly fashion conscious professional men.
The company's initial public offering of stock on the NYSE occurred on November 22, 2010. The company offered 8M ADSs each for $11. This was at the high end of the initial price range of $9-$11. The IPO raised a total of $88M. The lead underwriter of the deal was Cowen & Company.
Xiniya has grown its total revenues over the past 3 years. As of 2009, the company reported total revenue of 672M RMB or approximately $100M. This corresponds to a 40% increase over its 2008 figure. 93% of the company's total revenues come from its business casual segment, while business formal and its accessories are significantly smaller in terms of revenue. Xiniya's net profits have also increased since 2007, and the company reported net profits of 194M RMB, or $29M, in 2009. This corresponds to a 54% increase over its 2008 net profit.