Qingdao Footwear Inc. to Announce Shareholder Updates, Company News via Press Release

Qingdao Footwear, Inc. (OTC BB: QING.OB), announces that in light of recent opportunities and company benchmarks, it will be making regular announcements via press release to update both prospective and existing shareholders on its progress.

The company’s execs feel that it has reached a level of success warranting frequent updates in line with expansion, spokesperson and cross-marketing relationships and anticipated increase in distributorships and retail outlets, including its base of flagship stores and third-party operated locations all of which are branded with the Hongung name and carrying shoes under its Hongung brand.

Qingdao Footwear, a designer and retailer of men and women’s footwear products, “provides consumers with business casual and formal leather shoes appropriate for an office setting,” states company execs. “Each year we design or commission designs for more than 300 unique styles. Designs are made based on collaboration between our sales department and design department regarding market demand and assessment of what will designs be fashionable in the upcoming season.”

The company’s net sales increased to $14,964,654 in the nine months ended September 30, 2010 from $12,517,751 in the same period in 2009, representing a 19.6% increase year-on-year. As retail sales trends and broader economic growth in the PRC have been positive despite a global economic downturn, during the nine months ended September 30, 2010, we increased prices by 26% in order to achieve higher gross profit, with a focus on net sales profit over volume. This increase was mainly due to the growth in Qingdao Footwear’s points of sales. As of September 30, 2009, Men’s footwear constituted 60% of revenue and women’s footwear the remainder. 40% of sales were formal shoes, and the remaining 40% are attributed to casual footwear.”

The company further states that, “given the tremendous growth in the Chinese economy over the past 20 years, estimates from market research groups expect the Chinese footwear market to grow annually through 2013 in terms of value. As income levels in PRC continue to increase, it is expected that shoe consumption will approach levels of other nations with similar cultural consumption characteristics, so we expect our room to grow with the domestic market will continue for the foreseeable future with possibilities for international agendas in the future.

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" made pursuant to the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." Such statements are subject to risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or perform as intended, that we may be unable to obtain necessary financing to continue operations and development, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.