26.11.2012 – 08:14

Firstextile AG

EANS-News: Firstextile AG continues growth in first nine months of 2012

--------------------------------------------------------------------------------
  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
--------------------------------------------------------------------------------
Subtitle: Growth in revenue of 32% and net profit of 54% compared to the first
nine months of 2011 // Earnings before interest and tax (EBIT) +52%
year-on-year; strong EBIT margin of 25% // Revenues of at least EUR 160 million
and gross profit margin of 32% - 33% expected for financial year 2012

9-month report

Frankfurt am Main (euro adhoc) - November 26, 2012 - Firstextile AG (FT8) has
today published its financial figures for the first nine months of 2012,
reporting a strong increase in revenues and net profit, maintaining the previous
years' positive trend.

In the first nine months of 2012, the company's total revenues amounted to EUR
126.8 million compared to EUR 95.9 million in the same period of 2011 (+32%
year-on-year). Revenue increased in all business segments with the largest
growth coming from its Uniform segment. The company's gross profit increased to
EUR 41.0 million compared to EUR 29.5 million in the previous year (up 39%); 
this translates to a gross profit margin of 32% (previous year: 31%).
Firstextile's earnings before interest and tax (EBIT) rose by as much as 52% to
EUR 31.6 million (previous year: EUR 20.8 million), corresponding to an EBIT
margin of 25% (previous year: 22%). Net profit increased from EUR 16.9 million
in the first nine months of 2011 to EUR 26.1 million in the same period in 2012
(up 54%). 

Fred Yang, founder and CEO of Firstextile commented: "We are very proud to
present these positive figures following the successful completion of our IPO
two weeks ago. The improvement of our gross profit margin in the fabrics segment
from 24% to 28% shows that our strategy of focusing on the profitable high-end
segment of the Chinese market is paying off, with 91% of the fabric sales in the
first nine months of 2012 being attributable to high-end fabrics. Overall we see
these results as proof of our appealing business model, and of our company's
high growth-potential."

Firstextile's revenues within the Fabric segment accumulated in the reporting
period to EUR 81.2 million after EUR 73.9 million in 2011 (up 10%). This growth
is a result of the shift of the product mix towards high-end fabrics increasing
the average selling price. At 64% (previous year: 77%), the largest share of
total revenues is generated from this segment. Gross profit also increased
significantly year-on-year, growing with 29% to EUR 22.3 million (previous year:
EUR 17.3 million). 

The Uniform segment had the highest year-on-year revenue growth and increased
with 155%, increasing to EUR 30.7 million compared to EUR 12.1 million in the
previous year. On a group level the Uniform segment contributed 24% of total
revenues compared to 13% in 2011. Firstextile launched operations in this
segment only as recently as 2011 and obtaining the status as pre-approved
supplier for government institutions and large state-owned enterprises in the
past 12 months. This resulted in some large orders in 2012 and as a result
shifted the overall product mix of the group significantly. Gross profit rose to
EUR 6.9 million registering a year-on-year-growth of 76% (previous year: EUR 3.9
million). 

Revenues in the Shirt segment grew to EUR 14.9 million increasing with 50%
compared to EUR 9.9 million in the previous year and reflects the continued
roll-out of Firstextile's retail distribution network over 2012. On a group
level the Shirts segment contributed 12% of the revenues in the first nine
months compared to 10% in the same period last year. Gross profit increased by
42% year-on-year to EUR 11.8 million, compared to EUR 8.3 million, representing
a gross profit margin of 80% in the first nine months of 2012. 

The company's CFO Richard Cao commented: "We expect that the positive revenue
and profit development of the first nine months will continue in the final
quarter of 2012. For the full year 2012 we estimate that revenues will exceed
EUR 160 million, and that the gross profit margin will be between 32% and 33%."

The complete 2012 nine-month report can be downloaded from today from the
company's website at www.firstextile.de, within the "Investor Relations" area. 

Company profile 
Firstextile is the leading manufacturer of high-end yarn-dyed fabric in the
Chinese market with a market share of 9% in terms of volume in 2011. It also
markets fabric and shirts specifically designed for uniforms used by Chinese
government institutions and enterprises, as well as its own branded men's shirts
for the Chinese premium market segment. The company operates modern production
facilities in Jiangyin near Shanghai, China, which is one of the main centres of
the Chinese textile industry, and it focuses particularly on high
product-quality. Net proceeds from the successful completion of the IPO on
November 12, 2012, will primarily be used to double annual production capacity
from the current 36 million metres to 72 million metres within the next 12 to 18
months.


Further inquiry note:
Firstextile AG
Maggie Wang 
Lyoner Straße 14, 60528 Frankfurt am Main
Telefon: +86 (0) 1390 100 9306	
E-Mail:  maggie.wang@firstextile.com

cometis AG
Henryk Deter / Claudius Krause
Telefon: +49 (0) 611 205855 -13 / -28
Email:  deter@cometis.de /  krause@cometis.de

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


company:     Firstextile AG
             Lyoner Str.  14
             D-60528 Frankfurt am Main
WWW:         http://www.firstextile.de
sector:      Consumer Goods
ISIN:        DE000A1PG8V8
indexes:     
stockmarkets: designated to listed: regulated dealing/prime standard: Frankfurt 
language:   English