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China Dongxiang

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2022

    Kappa parent China Dongxiang posts RMB 1.7 billion annual loss as Kappa Sports is repeatedly penalized over product quality

    Beijing Business Today and China Economic Net reported that China Dongxiang posted a loss of RMB 1.747 billion in fiscal 2021, including a loss of RMB 1.468 billion in its investment segment; revenue and gross margin of its main brand Kappa both fell, and it once relied on selling trademarks to survive. Jiemian News said it once lost more than RMB 100 million a month and that counterfeit goods were rampant. Another report said its Kappa Sports company was fined RMB 13,000 in 2024 and had RMB 5,141.89 in illegal gains confiscated because backpacks and handbags failed oscillation impact performance tests; in 2023 it was fined and had assets confiscated totaling more than RMB 50,000 over similar problems, and it received five administrative penalties for quality issues within five years. Status: administrative penalty. Entities involved: China Dongxiang (Group) Co., Ltd. and Kappa Sports Goods. Scope: China Dongxiang and Kappa products.

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