Business competition
2013 KPMG Cup 24-Hour Business Challenge
4/21/2013
Case Study——
China Dongxiang (Group) Co.,Ltd
Shanghai University of Finance and Economics
Team name: SJ
Team leader: Jiang Jiaxiu, sophomore
Major: financial management from Accounting Institute
Team member: Shi Yahui, sophomore
Major: financial management from Accounting Institute
Contact information:
13818526281
jiangjiaxiu93@163.com
777 Guoding Road, Yangpu District ,Shanghai, China 200433
1
2013 KPMG Cup 24-Hour Business Challenge
4/21/2013
Catalogue
Evaluate
the
company’s
position
in
the
industry
and
………………………………………………………………
market.
2
Analyze the company’s financial situation since 2011
Comment on the implementation of the company’s strategy in the first half of
………………………………………………………………
2012.
……………………
the
5
8
How do you assess the company’s behavior of interim special dividend in 2012 …… 12
Case Study——China Dongxiang (Group) Co.,Ltd
1. Evaluate the company’s position in the industry and the market
1.1 Background information about China Dongxiang(Group) Co.,Ltd.
In 2004, a relatively unknown Chinese company called Dongxiang purchased the sole agency for Kappa, the famous Italian sports brand, from Li Ning in China. The Kappa business has been losing money in the Chinese market before. In May 2005, when
Kappa’s parent company in Italy, BasicNet, suffered from cash shortage, China
Dongxiang took the opportunity then bought out the ownership of Kappa brand and owned all rights to Kappa in the PRC and Macau. At the time it was described as a classical case that distributors takeover the brand in reverse.
Now, after six year’s growth, China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China and Kappa has grown into the third biggest sportswear brand in China. The group is primarily engaged in the design, development, marketing and wholesaling of branded
4/21/2013
Case Study——
China Dongxiang (Group) Co.,Ltd
Shanghai University of Finance and Economics
Team name: SJ
Team leader: Jiang Jiaxiu, sophomore
Major: financial management from Accounting Institute
Team member: Shi Yahui, sophomore
Major: financial management from Accounting Institute
Contact information:
13818526281
jiangjiaxiu93@163.com
777 Guoding Road, Yangpu District ,Shanghai, China 200433
1
2013 KPMG Cup 24-Hour Business Challenge
4/21/2013
Catalogue
Evaluate
the
company’s
position
in
the
industry
and
………………………………………………………………
market.
2
Analyze the company’s financial situation since 2011
Comment on the implementation of the company’s strategy in the first half of
………………………………………………………………
2012.
……………………
the
5
8
How do you assess the company’s behavior of interim special dividend in 2012 …… 12
Case Study——China Dongxiang (Group) Co.,Ltd
1. Evaluate the company’s position in the industry and the market
1.1 Background information about China Dongxiang(Group) Co.,Ltd.
In 2004, a relatively unknown Chinese company called Dongxiang purchased the sole agency for Kappa, the famous Italian sports brand, from Li Ning in China. The Kappa business has been losing money in the Chinese market before. In May 2005, when
Kappa’s parent company in Italy, BasicNet, suffered from cash shortage, China
Dongxiang took the opportunity then bought out the ownership of Kappa brand and owned all rights to Kappa in the PRC and Macau. At the time it was described as a classical case that distributors takeover the brand in reverse.
Now, after six year’s growth, China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China and Kappa has grown into the third biggest sportswear brand in China. The group is primarily engaged in the design, development, marketing and wholesaling of branded