(Yicai Global) Nov. 27 -- Bosideng Group’s shares soared after China’s largest maker of down jackets reported a 42 percent gain in profit for the fiscal first half.

Bosideng [HKG: 3998] climbed more than 12 percent in morning trading, before finishing 6.2 percent higher at HKD3.41 (44 US cents).

Net profit was CNY486 million (USD73.9 million) in the six months ended Sept. 30, the Shanghai-based company said in an earnings report released yesterday. Revenue rose 5.1 percent to CNY4.7 billion (USD714.5 million).

The apparel maker’s own brands performed well in the period and sales rebounded in the third quarter of the calendar year against the challenging backdrop of the Covid-19 pandemic, which has greatly impacted the clothing sector since the start of the year.

Sales gradually picked up between July and September, Chief Financial Officer Zhu Gaofeng told Yicai Global today. Growth remains good in the fiscal second half judging by sales volumes during the Double 11 shopping festival and after the weather turned cold last month, he added.

The company’s gross profit margin in the six months widened 4.3 percentage points to 47.8 percent, the report showed.

Revenue growth mainly came from the firm’s down jacket business, which jumped 18 percent to CNY3 billion, accounting for 64 percent of the total. But other areas, including original equipment manufacturer, women’s clothing and other apparel businesses all fell from the previous year.

Retail sales of clothing, footwear and hats in China fell 12.4 percent in the first three quarters, according to official data. The market began to pick up after the third quarter as the contagion was gradually brought under control in the country. Retail sales jumped 8.3 percent in September from a year earlier.

But Bosideng’s management remains cautious and will continue to maintain a low rate of store expansion, Zhu said.

Editors: Dou Shicong, Peter Thomas