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| Frequently Asked Questions |
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Our business was founded in the PRC under Fujian Xidelong Sports Goods Co., Ltd. in September 2001. In January 2002, we rented a production facility in Jinjiang, Fujian Province and commenced designing, manufacturing and selling footwear under the brand "Xidelong".
Exceed is a limited liability company incorporated in the British Virgin Islands ("BVI") on April 21, 2009 as a wholly-owned subsidiary of 2020 ChinaCap Acquirco, Inc. ("2020"), a blank check company formed in Delaware for the purpose of acquiring, through a merger, stock exchange, asset acquisition or other similar business combination, an operating business that either: (1) was located in China, (2) had its principal operations located in China, or, (3) in 2020's view, would benefit from establishing operations in China.
On October 21, 2009, we completed our private equity financing from Windtech Holdings Limited and Wisetech Holdings Limited, private equity funds under New Horizon Capital, and our business combination with 2020. In the business combination, Exceed acquired Windrace through a share purchase and merged with 2020, and is the surviving entity. |
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Exceed designs, develops, manufactures and sells sportswear under the self-owned XIDELONG brand in China. Revenue is derived primarily from the sales of footwear, apparel and accessories in the Southwestern, Northeastern and Northwestern regions of China. |
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What is driving the company's growth? |
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The market has been growing rapidly in China due to the increasing demand for lifestyle and leisure products and heightened interest in health consciousness among Chinese consumers. We focus primarily on second- and third-tier cities in China, which are characterized by increasing urbanization and strong economic development. We believe these cities present the best opportunity for retail sales growth. |
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Our target customers are between 15 and 35 years of age. Exceed's target consumer markets are the second- and third-tier cities in China. We plan to focus on penetrating these market segments using a mid-range pricing strategy. |
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Where are your products sold? |
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We sell our products through our nation-wide sales and distribution network in China, with 3,694 stores as of December 31, 2009. Our sales network focuses primarily on second- and third-tier cities in China, particularly in the Southwestern, Northeastern and Northwestern regions of China. |
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Our partners are the China Institute of Sport Science, General Administration of Sport of China, the research center established by the General Administration of Sport of China, which engages in research in the field of sport science, and works with us exclusively in its research and development efforts in China. |
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Exceed has three principal categories of products: (i) footwear, which comprises running, leisure, basketball, skateboarding and canvas footwear, (ii) apparel, which mainly comprises sports tops, pants, jackets, track suits and coats, and (iii) accessories, which mainly comprise bags, socks, hats and caps. |
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Who are the Company's competitors? |
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There are a few home-grown brands targeting similar market segment with medium-price strategy. We believe XIDELONG's products offer better value for quality and have strong competitive advantages. |
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Our company headquarters is in Jinjiang, Fujian pProvince and our production facility is also located in Jinjiang, Fujian Province. |
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How many employees does Exceed have? |
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Exceed employs over 3,000 people. |
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On what exchange does Exceed trade and what is its ticker symbol? |
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Exceed currently trades on Nasdaq under the symbols "EDS" (ordinary shares), "EDSWW" (warrants) and "EDSUU" (units). |
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Exceed became listed through a business combination with 2020, a special purpose acquisition vehicle. The company completed the business combination on October 21, 2009. |
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How many shares of Exceed are outstanding? |
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As of June 30, 2010, there are 25,303,727 shares outstanding. An additional 9,981,828 shares are issuable upon the exercise of the outstanding warrants and units and an additional 5,703,453 shares will be released from escrow for the selling shareholders of Windrace if Exceed satisfies certain performance thresholds. Furthermore, not taking the escrowed shares, an additional 2,212,789 shares will be issued to the selling shareholders of Windrace if certain earnings targets in 2011 are met. The escrow shares and additional shares are not considered outstanding. |
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What is Exceed's CUSIP number? |
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Shares: G32335 104
Warrants: G32335 112
Units: G32335 120 |
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Does Exceed pay a dividend? |
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Any future determination to pay dividends will be at the discretion of our Board of Directors and will depend on, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors the Board of Directors may deem relevant. |
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We have not issued any bonds. Depending on future developments of our business and changes in our industry, we may determine at a later time to raise debt or equity capital to fund working capital, capital expenditures and other general corporate purposes. |
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Who is Exceed's independent auditor? |
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Crowe Horwath |
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When does Exceed's fiscal year end? |
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The fiscal year ends on December 31 of each year. |
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When does Exceed report earnings? |
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Exceed announces its unaudited financial results according to the following schedule each year:
Q1 May
Q2 August
Q3 November
Q4 April
You can find earnings announcement dates on the page of "IR Calendar" in our website. |
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In what currency does Exceed report earnings? |
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Exceed's reporting currency is RMB. |
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How can I listen to the webcast for the earnings report? |
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How can I download and view the quarterly and annual reports online? |
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You can download the annual reports on the Investor Relations website, in the "Financials" section. |
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Where can I find all of Exceed's SEC filings? |
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How do I contact Investor Relations? |
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