China Dongxiang (Group) Co., Ltd. is principally engaged in brand development, design and sales of sport-related apparel, footwear and accessories in the People’s Republic of China, Macau and Japan. The Company operates in two segments: China and Japan. In China segment, the Company is engaged in distribution of sport-related products under Kappa Brand and other brands and international business, which includes the provision of Kappa Brand products for other Kappa licensees in other countries. In Japan segment, the Company is engaged in distribution of sport-related products under Kappa, Phenix and other brands. During the year ended December 31, 2011, the Kappa Brand business accounted for 71.9% of its total sales.