Wu Rongzhao, chief executive of China Hongxing Sports, which makes the Erke brand of sports apparel and footwear, is reportedly leaving the company despite a sharp increase in sales. In fact, the company announced in July that Rongzhao would step down as soon as a new chief executive was found. The announcement was made as part of a statement in which China Hongxing submitted a proposal to the Singapore Exchange to resume trading in its shares. Trading was suspended after significant accounting irregularities surfaced in the company's reporting for the full year 2010. For the half year until the end of June 2012, the group reported that its sales had jumped by 26 percent to nearly 1,271 million yuan renminbi (€156.1m-$204.2m), driven by footwear. The unaudited results showed that China Hongxing still suffered a loss of nearly RMB 73 million (€9.0m-$11.7m) for the period, but that was far less than the loss of nearly RMB 259 million incurred for the same months in 2011. It could not be confirmed at the time of writing if the company is indeed appointing a new chief executive.

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