DGAP-News: Tintbright AG / Key word(s): Preliminary Results Tintbright AG: Stable margins and a slight sales growth in 2013 18.03.2014 / 15:32 --------------------------------------------------------------------- Tintbright AG: Stable margins and a slight sales growth in 2013 - Group revenue rose 3.7% to EUR 127.2 million (2012: EUR 122.7 million) - Gross profit margin stable at 26.6% - Pre-tax earnings increased to EUR 29.4 million (2012: EUR 27.6 million) - Pre-tax margin advanced to 23.1% (2012 22.5%) - Operating cash flow still high - Equity ratio improved to 68.0% - Sales growth of around 10% and stable margins expected for 2014 Hamburg, March 18, 2014 - Tintbright AG, the German holding company of a Chinese textile manufacturer, has published its preliminary figures for the 2013 financial year. The company registered a slight rise in both sales revenue and pre-tax earnings in the reporting period. "We are delighted by the good performance and confident that we will be able to generate even higher growth in the present fiscal year," said Tianzhun Zhao, Chairman of the Management Board and founder of Tintbright AG. For Zhao this development is mainly due to the positioning of Tintbright as a one-stop service-provider: "Our customers in the textile industry are increasingly recognising and utilising the related time-savings and innovative capability." Increase in revenue and stable margins The Tintbright Group grew sales revenue by 3.7% to EUR 127.2 million in 2013 (2012: EUR 122.7 million). The external revenues in the "Weaving" segment posted a slight drop of 2.0% to EUR 26.2 million (2012: EUR 26.7 million) in external revenues, while the "Processing" segment grew external sales by 5.2% to EUR 101.0 million in the reporting period. Looking at earnings, the Group's gross profit increased to EUR 33.8 million in 2013 (2012: EUR 32.6 million), with a stable gross profit margin of 26.6%. The gross profit was EUR 4.2 million in the "Weaving" segment (2012: EUR 4.3 million) and EUR 29.6 million in the "Processing" segment (2012: EUR 28.3 million), giving gross profit margins of 16.1% and 29.3% respectively (2012: 16.0% and 29.5%). Earnings before taxes (EBT) rose to EUR 29.4 million in the reporting period (2012: EUR 27.6 million), giving a pre-tax margin of 23.1% (2012: 22.5%). High cash flow and solid balance sheet structure The cash flow from operating activities was EUR 20.6 million in 2013 (2012: EUR 41.4 million). The considerable year-on-year decline was principally due to a reduction of EUR 8.3 million in trade accounts payable in 2013, compared with an increase of over EUR 7.9 million in 2012. The cash outflow for investing activities was EUR 2.1 million (2012: outflow of EUR 0.6 million). This was used entirely for investment in property, plant and equipment. The cash inflow from financing activities was EUR 0.9 million (2012: outflow of EUR 33.5 million). This was partly attributable to the fact that in the reporting period, unlike the prior year, there was no cash outflow for dividend payments (2012: outflow of EUR 12.3 million). The total cash flow was EUR 10.0 million in 2013 (2012: EUR 0.9 million). Cash and cash equivalents therefore rose from EUR 39.5 million to EUR 49.4 million in the reporting period. Tintbright did not have any noncurrent liabilities to banks in 2013. The carrying amount of equity increased to EUR 67.8 million as of December 31, 2013 (December 31, 2012: EUR 46.5 million). The equity ratio therefore increased from 48.2% to 68.0%. Outlook for fiscal 2014 In fiscal 2014, the Management Board expects to grow revenue by around 10% compared with 2013, with a stable gross profit margin of around 27% and an after-tax margin of around 17%. The increase in sales revenue should be driven principally by new production capacity for fabric dyeing, which is scheduled to come into service in mid-May. A more detailed forecast will be given in the Annual Report for 2013, which will be published with the audited financial statements on April 30, 2014 and will be available for download from the company's website at www.tintbright.de (Investor Relations/Downloads). The annual general meeting will probably be held on August 11, 2014 in Frankfurt am Main. As the basis for a long-term dividend policy, at the Annual General Meeting the company intends to propose a dividend payment of at least 15 percent of after-tax earnings. About Tintbright AG Tintbright AG is the German holding company of an established and fast growing Chinese textile manufacturer, which employs more than 1,100 workers in the production and processing of fabrics. This comprises weaving, printing and dyeing fabrics, and post-processing treatments. The company recognized the trend towards one-stop-solutions in the textile industry very early on and is now one of very few Chinese companies offering vertically integrated services to its customers. Tintbright increasingly focuses on innovative and functional product properties such as UV-protection and anti-static and anti-bacterial finishes. Tintbright's products are sold to textile manufacturers, mainly in Fujian province and to local trading companies serving the whole PRC market and the most important export markets. Its broad customer base comprising over 550 buyers includes well-known Chinese brand names such as K-boxing, Anta and SeptWolves. Since 2010, Tintbright has grown by an average of 13 percent a year, recording revenues of EUR 127.2 million and a pre tax profit of EUR 29.4 million in 2013. For further information about the company visit: www.tintbright.de/en For enquiries: Tintbright AG Ang Chung Member of the Management Board and CFO Email: [email protected] Phone: +86 187 5941 6698 Disclaimer: This document is no offer for the purchase of securities in the United States of America. Securities may only be sold or offered for sale with the previous registration under the U.S. Securities Act of 1933 in the actual valid version or without previous registration only pursuant to an exemption. The shares of Tintbright AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933 in the actual valid version and may not be sold or offered in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares, which are referred to, are only available to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 18.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Tintbright AG c/o HRG Hansische Revisions-Gesellschaft mbH, Ferdinandstraße 25 20095 Hamburg Germany Phone: +86 595 8539 2011 Fax: +86 595 8538 7408 E-mail: [email protected] Internet: www.tintbright.de ISIN: DE000A1PG7W8 WKN: A1PG7W Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin End of News DGAP News-Service --------------------------------------------------------------------- 258125 18.03.2014