Zungui Haixi Corporation

Zungui Haixi Corporation

June 21, 2010 16:00 ET

Zungui Haixi Announces Management Changes and Results From Recent Casual Footwear Sales Fair

TORONTO, ONTARIO--(Marketwire - June 21, 2010) - Zungui Haixi Corporation (TSX VENTURE:ZUN), a China-based manufacturer of sportswear and casual footwear, announced that Mr. Jixu Cai has resigned as Chief Executive Officer and Director of Zungui Haixi Corporation ("Zungui" or "Company") effective June 19, 2010 for health reasons. Mr. Yanda Cai, currently a Director of Zungui, has been appointed Chief Executive Officer. Mr. Yanda Cai, one of the founders of the business in 1992, was previously President of the operating entity until 2008 and has extensive experience in the operations of the business. Mr. Yanda Cai has played a significant role in the success and vision of the business during the past 18 years. In addition, to assist with the delivery of Zungui's retail growth strategy, a Chief Operating Officer position will be added to the management team in China. This position will build on the organizational capabilities within the Company and bring further management expertise and retailing experience to the group. The Board recently interviewed some potential candidates, all with experience with other Chinese retailers and manufacturers. 

"We are working with the independent Directors of the Board to find the most appropriate qualified individual for the role of Chief Operating Officer," indicated Mr. Yanda Cai. "We are grateful for Jixu's assistance and contribution over the years and thank him for his dedicated service to the company. We welcome his input and advice to the Company as his situation permits." 

Mr. Yanda Cai continued, "We are looking forward to the hiring of a Chief Operating Officer to complement existing management during the next stage of our growth and development as one of China's largest domestic shoe manufacturer and retailers. We are on target to meet our goals for calendar 2010 of opening 100 corporate-owned and managed retail outlets and 250 retail outlets from distributors." 

Casual Footwear Sales Fair Results

The Company recently held its casual footwear sales fair and orders increased 30% over the previous year. The casual footwear is a niche product line for the sportswear company, accounting for 12% of total revenue for the nine months ended March 31, 2010. As previously announced, the Company's orders from its sportswear sales fair for its sports footwear and apparel increased 38% over the previous year. 

Caution Regarding Forward-Looking Statements

Certain statements in this press release contain forward-looking information that involve risk and uncertainties. Statements other than statements of historical fact contained in this press release may be forward-looking statements within the meaning of certain securities laws, including, without limitation, statements involving management's expectations, intentions and beliefs concerning the domestic PRC sportswear industry, the competitive landscape in this industry and the general economy, statements regarding the future financial position or results of the Company, business strategies, proposed acquisitions, growth opportunities, budgets, litigation, projected costs and plans and objectives of or involving the Company. Such statements should be considered forward-looking statements, Wherever possible, words such as "may", "would", "could", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "project", "continue" and similar expressions have been used to identify forward-looking statements.
These forward-looking statements reflect management's current beliefs and business judgement with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. Although management believes its current beliefs and assumptions are reasonable, many factors could cause Zungui's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the "Risk Factors" section of the Company's other filings with Canadian securities regulatory authorities at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as of and speak as of the date of this press release and the Company does not intend to, or assume any obligation to, update or revise these forward-looking statements to reflect new information, events, results or circumstances or otherwise after the date on which such statement is made as to reflect the occurrence of unanticipated events, except as required by law, including securities laws.

About Zungui Haixi

Zungui Haixi Corporation, through its wholly owned subsidiaries, is engaged in the manufacture and sale of athletic footwear, apparel and accessories, and also casual footwear, in the People's Republic of China. Both product lines are marketed under the ZUNGUI brand. Zungui Haixi distributes its products to consumers throughout China through an extensive network of retail outlets which exclusively carry ZUNGUI branded products. There are 62,259,500 common shares issued and outstanding.

Contact Information

  • Zungui Haixi Corporation
    Ms. Shelly Gobin
    Chief Financial Officer