KUALA LUMPUR (Jan 2): China-based casual and sports footwear manufacturer Xidelang Holdings Ltd said the group is confident of achieving a double-digit top line growth in its financial year ending Dec 31, 2019 (FY19).

This is because the group has managed to expand its existing portfolio under the original design manufacturing (ODM) segment, its managing director and chief executive officer Ding Pengpeng told reporters after the group's extraordinary general meeting here today.

"We are confident of our prospects in 2019, especially since we have now secured, or are in talks with, several major international brands, including Reebok, which we will begin manufacturing for next year," he said, declining however to reveal further details on grounds of non-disclosure obligation.

As the group currently caters mostly to the wider global market, such as European brands Zara, Pull & Bear, and Armani, Xidelang sees no significant impact on its performance from the ongoing US-China trade dispute, according to its independent non-executive director Wong Yoke Nyen, who was also present at the session.

Wong also added that Xidelang has yet to identify candidates for mergers and acquisitions (M&A), and denied market talks of a privatisation.

"So far, there's nothing [for M&A], it is only exploratory. [However], we are always looking at M&A if the opportunity comes along. We get approached all the time, but it is up to us whether it is beneficial to [the] company.

"And on the question as to whether there is any intention to bring the company private, at this juncture there is no intention yet, as what [we have] told the shareholders," he explained.

Xidelang for its financial year ending Dec 31, 2017 (FY17) reported a 7.7% growth in its annual revenue to RM542.42 million, while net profit more than doubled to RM16.59 million. As at its third quarter ended Sept 30, 2018, Xidelang reported a nine-month net profit of RM16.35 million, up 18.7% from RM13.77 million in the same period a year ago, despite a 19.1% fall in its cumulative revenue to RM338.42 million, from RM418.34 million before.

Today, shareholders approved a bonus issue of 902.44 million free warrants on the basis of one warrant D for every two existing shares, at 4 US cents (or approximately 18 sen) apiece.

At the noon break, the stock settled unchanged at 12 sen — compared with its initial public offering price of 58 sen ten years ago — for a market capitalisation of RM216.59 million.