(Yicai Global) Aug. 30 -- Chinese sportswear maker and distributor Guirenniao Co.'s [SHA:603555] multiple brand strategy helped it achieve 50-percent revenue growth in the first half.

The firm has developed three new channels and begun to operate more than 10 new brands, all of which contributed to the group's revenue, it said in its interim report, released on Aug. 29. Total revenue was CNY1.58 billion (USD235 million), up 55 percent on the year, while net profit fell by 17 percent to CNY129 million (USD19 million).

Guirenniao began receiving income from three affiliates, a sports retailer, an e-commerce platform and a football brokerage for players and clubs, in 2016, which saw revenue soar. The dip in profits was down to an equity acquisition that cost CNY367.5 million.

After expanding to sell a range of brands, including Nike, Adidas, Converse and New Balance, the company significantly increased its revenue. It also extended its target market to include retail sales, as well as wholesale, through online and offline channels.

Since forming in 2004, Guirenniao has engaged in the development, production and sales of self-branded sportswear and footwear. However, its operating income for last year was CNY853 million (USD127 million), down 16 percent on the year. Agency sales income from Nike, Adidas and Lining made up 44 percent of total revenue at CNY695 million.

The market for sports equipment will reach CNY254 billion (USD38.5 billion) by 2020, 54 percent more than in 2015, according to data from Economic Corporate Network. Sportswear and sneakers still have great potential, but are faced with more challenges as competition increases. Guirenniao addresses that challenge by selling multiple brands through multiple channels and reducing the risks faced by selling a single brand.