DGAP-News: Tintbright AG / Key word(s): Final Results Tintbright AG: Tintbright AG publishes the annual report for FY 2013 - Dividend proposal of EUR 1.64 per share 30.04.2014 / 20:53 --------------------------------------------------------------------- Tintbright AG publishes the annual report for FY 2013 - Dividend proposal of EUR 1.64 per share - Proposal for a dividend payment of EUR 1.64 per share for FY 2013 - Preliminary figures confirmed - Group revenue grew 3.7% to EUR 127.2 million (2012: EUR 122.7 million) - Profits developed disproportionately positive - Net profit amounted to EUR 21.8 million (2012: EUR 19.1 million) - Positive outlook for FY 2014 - Sales growth of around 10% at an EBT margin of approx. 22% to 24% expected Hamburg, April 30, 2014 - Tintbright AG, the German holding company of a Chinese textile manufacturer (Prime Standard, ISIN DE000A1PG7W8, TBR), today published the annual report for FY 2013. Supported by increasing sales of high-margin products, Tintbright was able to post a further increase in sales and earnings. Sales grew 3.7% to EUR 127.2 million and pre-tax earnings rose even faster, by 6.5%. The EBT-margin therefore improved to 23.1%. The operating cash flow was EUR 14.0 million and the equity ratio climbed to 68.0%. The Supervisory Board supported the Management Board's proposal for the distribution of the profit so that a proposal for a dividend payment of EUR 1.64 per share will be presented to the Annual General Meeting which will be held on 11 August 2014 in Frankfurt am Main. "We were able to achieve moderate revenue growth in fiscal year 2013, successfully escaping the considerable pressure on margins in China's traditional textile industry. This continuous success is not only due to our focus on high-margin functional finishing of fabrics, but also based on the fact that as one of the few Chinese textile producers that positioned itself early on as a one-stop service-provider, we benefit from the increasing demand for integrated services and customized products. Furthermore, we have been investing in environment-friendly production processes and equipment for many years - a clear competitive advantage as environmental protection becomes more and more important," reports Tianzhun Zhao, Chairman of the Management Board and founder of Tintbright AG. Sales and earnings The Tintbright Group grew sales revenue by 3.7% to EUR 127.2 million in 2013 (2012: EUR 122.7 million). Since the average exchange rate for the RMB versus the euro decreased by around 1.4% in the reporting period, growth measured in RMB was correspondingly higher. The increase in revenues refers to price as well as quantity issues. There was a slight drop of 2.0% in external revenues to EUR 26.2 million (2012: EUR 26.7 million) in the Weaving segment whereas revenues in the Processing segment increased by 5.2% to EUR 101.0 million (2012: EUR 96.0 million). This resulted in a slight shift in the revenue split between the two segments compared with the previous year. The Processing segment increased its share of the Group's total revenue from 78.2% to 79.4%, while the Weaving segment's share decreased from 21.8% to 20.6%. The company made a gross profit of EUR 33.8 million in 2013 (2012: EUR 32.6 million), giving an unchanged gross profit margin of 26.6% (2012: 26.6%). Looking at the segments, gross profit in the Weaving segment slipped by EUR 0.1 million to EUR 4.2 million (2012: EUR 4.3 million), while the gross profit from textile processing and finishing activities increased to EUR 29.6 million (2012: EUR 28.3 million). This mirrors the sales trend which is driven by the strategic focus on innovative and functional textiles and is reflected in all earnings indicators: EBITDA increased to EUR 31.3 million in the reporting period, compared with EUR 30.3 million in 2012 and the operating result (EBIT) improved to EUR 30.0 million (2012: EUR 28.7 million). The total result for the period was EUR 21.8 million (2012: EUR 19.1 million), giving restated earnings per share of EUR 10.92 (2012: EUR 9.54). The equity ratio clearly improved to 68.0% (2012: 48.1%) and the operating cash flow amounted to EUR 14.0 million in FY 2013 (2012: EUR 41.1 million). The considerable year-on-year decline was principally due to a reduction of EUR 11.9 million in trade payables at year-end 2013, compared with over EUR 7.4 million as of year-end 2012. Investments In 2013, Titntbright continued to invest in expanding production capacity and making production processes more environment-friendly. Total investment was EUR 2.1 million. EUR 1.7 million of this was for the completion of a new factory building for the growing high-margin fabric processing and finishing operations and EUR 0.4 million was for a new waste water treatment plant which is scheduled to come into operation in mid-2014. Tintbright intends to move forward in this direction in 2014 as well, especially by investing in further expansion of processing capacity to enable it to meet customers' requirements even better and create space for further growth. A new production building with production space of around 2,240 m2 and 34 new fabric dyeing units is therefore under construction at the site used by its subsidiary Sanrong Printing Weaving Co., Ltd. This will increase production capacity in this area by 37% to more than 218.9 million meters a year. Due to the efficiency of the production process, costs on the new production line will be below the current cost of fabric dyeing. The company therefore anticipates a slight improvement in margins. Since the building has been completed and the installation phase for the new equipment is short, production is scheduled to start in mid-May. In the next step, Tintbright is planning to expand production capacity for fabric printing this year. In all, it plans to invest EUR 1.0 million in 2014, with EUR 0.9 million of this earmarked for new machinery and EUR 0.1 million for new factory buildings. In addition, Tintbright plans to set up sales offices and a distribution network in Guangdong Province, which is a major garment manufacturing centre in the PRC, and in Shanghai. Outlook Based on the assumption that consumer spending in China will continue to increase and there will be a further rise in demand for one-stop services, with export demand and the number of customers remaining stable, the company expects to report rising volume sales in the coming years. Based on the present order situation, the Management Board anticipates that the Group will grow revenue by around 10% in euros (without taking currency effects into account). Because of the increasing focus on the higher-margin fabric processing and finishing stages and a slight reduction in production costs at the new facilities, margins should remain consistently high despite the increasing price pressure within the traditional textile industry. Accordingly, the Management Board expects the Groups' pre-tax margin (EBT margin) to be in the range of 22-24%. It assumes that, as in the previous year, the first quarter of the year will be the weakest for seasonal reasons. The audited consolidated financial statements for FY 2013 are available at Investor Relations on the company's website at www.tintbright.de. 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. 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 --------------------------------------------------------------------- 30.04.2014 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 --------------------------------------------------------------------- 265998 30.04.2014