Children's clothing retailer Pumpkin Patch has cracked the Chinese market and will open its first store in Beijing next month. 

The company has teamed up with a major Chinese clothing store operator which already manages about 400 stores.

Pumpkin Patch reported a 50 per cent jump in tax-paid profit to $14.3 million for the six months ending January, despite an eight per cent drop in operating revenue on the same period last year.

The profit lift follows a 70 per cent decrease in bank debt to $9.6m and cost-cutting in the United States where it shut 15 stores last financial year.

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