China Dongxiang (Group) Co., Ltd. is principally engaged in brand development, design and sales of sport-related apparel, footwear and accessories in the People鈥檚 Republic of China, Macau and Japan. The Company operates in two segments: China and Japan. In China segment, the Company is engaged in distribution of sport-related products under Kappa Brand and other brands and international business, which includes the provision of Kappa Brand products for other Kappa licensees in other countries. In Japan segment, the Company is engaged in distribution of sport-related products under Kappa, Phenix and other brands. During the year ended December 31, 2010, the Kappa Brand business accounted for 85.2% of its total sales. As of December 31, 2010, the international sourcing and Rukka distribution business had been terminated completely. In November 2010, the Company acquired 22.05% in Han Bo Jia Ye (Beijing) Company Limited.

China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company"; stock code: 3818, together with its subsidiaries the "Group") is a leading international sportswear brand enterprise based in China. The Group is primarily engaged in the design, development, marketing and wholesaling of branded sportswear in China. Since 30 May 2006, China Dongxiang has owned all rights to the internationally recognised Kappa Brand in the PRC and Macau.

In April, 2008, as a new chapter in its multi-branding strategy China Dongxiang announced the acquisition of Phenix Co., Ltd.("Phenix"), which mainly owned and managed KAPPA and PHENIX brands in Japan. As a result China Dongxiang is enriching its regional brand portfolio and extending product types to help develop the China ski and outdoor fashion markets. The Company's aim is also to further enhance its current R&D techniques and ability to integrate Japan PHENIX's strong design and R&D capacity as well as relevant talents. Ultimately they want to provide a solid platform for KAPPA and other brands' long-term development in China.

These days, China Dongxiang's major products convey an active, fashionable and youthful image and are warmly welcomed by China's fast growing, affluent consumers.