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Description of business:
Camkids is a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, outdoor footwear and outdoor equipment targeted at the Chinese children's market. Camkids initially began trading in 1994 as an OEM and ODM shoe manufacturer, primarily for the global export market, supplying global brands such as Geox and Fila. The Group started with 50-60 workers, producing footwear manually. In 2001 it acquired a piece of land at Sanguantian Village, Qingyang Town, Jinjiang City with a land area of circa 1,500 sqm and started its first production line. In view of the rapid growth of China's own economy, in 2008 the Group decided to take advantage of the high levels of growth within the growing Chinese domestic market by designing, manufacturing and selling a complete range of high quality branded apparel, footwear and equipment for active under its own registered brand "Camkids". Camkids manufactures the majority of its footwear at its own purpose-built production facility and sub-contracts the manufacture of all of its apparel and accessories to third party OEMs. The Group is now well positioned in the Chinese teenage outdoor wear market and in 2011 Camkids sold more teenage outdoor footwear than any other brand or company in the PRC, including Nike Kids and Adidas Kids (source: The China Industrial Information Issuing Center Report, February 2012). In September 2012 Camkids was included as one of the top 500 brands in Asia. Camkids targets the children's outdoor sportswear market and sells products such as hiking boots, backpacks and all-weather jackets. The Group places a large amount of emphasis on combining functionality and innovation as well as the use of high quality materials and advanced technologies throughout its product range to produce fashionable and premium products. Camkids currently offers a wide range of outdoor sportswear products including apparel, footwear and accessories. The Group launches two new collections per year, each tailored to meet the demands of the relevant forthcoming season. Each of these product lines is managed by a separate design team. The three main product areas are: Camkids outdoor clothing - all weather jackets, waterproof trousers, shirts, tops and T-shirts, woollen sweaters, jeans, trousers, shorts and skirts; Camkids footwear - hiking boots, outdoor leisure footwear, flip-flops, sandals and boots; and Camkids equipment and accessories - telescopes, backpacks, technical packs, tents, sleeping bags, headgear, caps, kettles, headlights and torches. In addition, the Group continues to manufacture footwear for large international brands an OEM basis. The Group operates its own flagship store in Fujian Province, adjacent to its head office and manufacturing facility, but its products are predominantly sold in Camkids branded stores and concessions operated by its network of distributors. The Group sells its products on a wholesale basis to its distributors' extensive distribution network across 29 provinces, four municipalities and five autonomous regions within the PRC. As at 30 June 2012, the Group had 15 authorised distributors operating over 1,000 retail outlets. However, the Group is focused on the top five provinces and 360 of the distributors' stores are located in these provinces. The wholesale business model is common in the sportswear industry in the PRC and has enabled the Group to achieve significant growth in sales by leveraging the resources of the distributors as well as its expertise in retail distribution and retail management and its relationship with the distributors.

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Camkids Group plc ("Camkids" or the "Group")

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