DGAP-News: Powerland AG / Key word(s): Quarter Results/Preliminary Results Powerland AG: Powerland starts with significantly improved earnings into the business year 2013 05.06.2013 / 20:05 --------------------------------------------------------------------- Powerland starts with significantly improved earnings into the business year 2013 - Group revenue slightly increases to EUR 47.7 million in the first quarter of 2013; Luxury segment up by 22.1 % - EBIT improves by 21.1 % to EUR 10.4 million - Outlook for 2013: Sustained growth set to continue - Publication of annual financial statements 2012 still delayed Frankfurt/Main, 5 June 2013 - Based on preliminary and unaudited figures, Powerland AG (ISIN DE000PLD5558 / Prime Standard), the leading Chinese manufacturer of handbags, leather goods and accessories, continued on its profitable growth path and increased revenues by 1.6 % (plus 1.9 % in Renminbi) to EUR 47.7 million in the first quarter of 2013 (Q1 2012: EUR 46.9 million). The company expects revenues growth to accelerate again in the course of the year after the only moderate revenues growth in Q1, which was mainly due to the generally slowed growth momentum in China. The Luxury segment in particular showed a positive development with increased revenues by 22.1 % to EUR 30.3 million in the first quarter of 2013 (Q1 2012: EUR 24.8 million). This figure reflects the successful expansion of the distribution network within this segment. However, revenues in the Casual segment decreased by 21.6 % to EUR 17.3 million as a result of pull-forward effects from the year-end quarter 2012 (Q1 2012: EUR 22.1 million). Following the increased efforts and significant costs for marketing activities last year aiming to further expand the market position in the Luxury segment in particular, this spending fell again below the previous year's amount. Nevertheless, it remained on a high level of EUR 6.1 million (Q1 2012: EUR 8.5 million). Accordingly, earnings before interest and taxes (EBIT) increased significantly by 21.1 % to EUR 10.4 million in the first quarter 2013 (Q1 2012: EUR 8.6 million). The profit after taxes amounted to EUR 7.6 million signifying an increase of 34.6 % compared to the previous year's quarter. Expansion of store capacities continued according to plan The expansion of the distribution network in the Luxury segment is in line with expectations. After the number of stores already increased by 16 to a total of 180 during 2012 and in addition to the 8 new openings during the first quarter of 2013, Powerland plans to open another 40 stores in 2013, mainly during the second half of the year. Until the end of 2013, the number of stores is expected to reach approximately 230, until the end of 2014 around 300. Continued growth expected in 2013 and for the following years The Chinese economy is expected to continue to do well in 2013, although on a less dynamic level. Therefore Powerland also expects another strong performance for the full year 2013 as the company will benefit from the growing middle classes in China and the current government policy designed to increase domestic consumption. New store openings and the continuing extensive brand-building measures will increasingly contribute positively to the growth of Powerland in 2013 and the following years. Publication of annual financial statements 2012 still delayed On 26 March 2013, Powerland communicated the delay of the publication of the annual financial statements 2012. The reason for the delay is that the auditor of Powerland AG, BDO AG Wirtschaftsprüfungsgesellschaft, needs more time for the audit than envisaged due to additional auditing procedures. Currently, the company still estimates that the auditing work will not be completed before June 30 2013. As the findings of the additional auditing procedures might have an impact on the figures of the financial report on the first quarter of 2013, the complete report on the first quarter of 2013 will not be published prior to the completion of the audit of the annual financial statements 2012. As mentioned above, all figures for the first quarter of 2013 are in so far preliminary and unaudited. Investors are therefore advised to consider the financial information contained in this press release with great caution. For more information, please contact: Powerland AG Jiangbin He Investor Relations Director Lyoner Strasse 14 60528 Frankfurt am Main Germany Phone: +49 (0) 69 66 554 - 459 Fax: +49 (0) 69 66 554 - 276 E-mail: [email protected] Home: http://www.powerland.ag End of Corporate News --------------------------------------------------------------------- 05.06.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory 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: Powerland AG Lyoner Straße 14 60528 Frankfurt am Main Germany Phone: +49 69 - 66554-459 Fax: +49 69 - 66554-276 E-mail: [email protected] Internet: www.powerland.ag ISIN: DE000PLD5558 WKN: PLD555 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 215102 05.06.2013