The revenues of China Dongxiang rose by 28.4 percent to 597 million yuan renmimbi (€82.9m-$93.4m) in the first half ended June 30, leading to a 202 percent jump in net income to RMB 290 million (€40.3m-$45.4m). A big boost came from a 46.4 percent sales increase to RMB 464 million (€64.4m-$72.6m) in the company's sales under the Kappa brand, for which it owns the rights in China, Macau and Japan. An increase of 10.7 percentage points to 66.3 percent in Kappa's gross margin stemmed from new products and improvements in replenishment orders and the proportion of sales discounts. The good results have enabled the board of directors to distribute 70 percent of the profits as dividends.

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