Xtep is fully committed to operating a seamless and vertically integrated business with the support of an efficiently managed supply chain. We utilized outsourced suppliers in Mainland China to produce footwear and apparel products, and sourced the materials for production collectively. All of the outsourced suppliers were constantly monitored by our quality control team to uphold high quality standards.
To enhance our inventory management, we increased our flexibility in production and delivery cycle. Inventory distribution in each quarter was split into three batches, consisting of existing products for the quarter and new products for the respective month. Production and delivery of the third batch of products would entirely depend on the retail sales performance of the first batch of products.