DGAP-News: Firstextile AG / Key word(s): Quarter Results Firstextile AG publishes its figures for Q1 2014 21.05.2014 / 07:53 --------------------------------------------------------------------- Firstextile AG publishes its figures for Q1 2014 - Revenue of EUR 32.9 mn achieved in Q1 2014 - Earnings before interest and tax (EBIT) of EUR 5.5 mn; EBIT margin of 16.8% in line - Positive outlook confirmed for the full year 2014: excellent strategic market position and expansion plans on schedule Frankfurt, 21 May 2014 - Firstextile AG (FT8) has today published its financial figures for the first three months of 2014, reporting the start into the current financial year which is in line with the overall expectations for the full year 2014. Overall, partly opposite trends were observed in the development: Firstextile was able to maintain and expand its competitive strength in the Branded Products segment. However, especially the development in the Uniforms segment had a negative impact on the Q1 result, but showed strong order income as of today which will be reflected in revenues and earnings during the next quarters. In the first three months of 2014, the company's total revenue decreased by 31.1% to EUR 32.9 million compared to EUR 47.7 million in the same period of 2013. This development in revenue is attributable especially to revenue declines in the Uniforms segment, where fluctuation quarter-on-quarter is not exceptional. As a result, the company's gross profit decreased by 27.3% to EUR 10.3 million compared to EUR 14.2 million in the previous year's period, resulting in a gross profit margin of 31.4% (Q1 2013: 29.8%). Firstextile's earnings before interest and tax (EBIT) amounted to EUR 5.5 million representing a decline of 42.6% year-on-year (Q1 2013: EUR 9.6 million) and corresponding to an EBIT margin of 16.8% (Q1 2013: 20.2%). Net profit decreased by 43.0% from EUR 7.6 million in the first three months of 2013 to EUR 4.4 million in the same period of 2014. Fred Yang, founder and CEO of Firstextile, commented the results: "Firstextile recorded a slow start into the financial year 2014 compared to the first three months of 2013. But this development was to be expected due to the extraordinary development in Q1 2013 which was far ahead of plan. However, we expect to continue the positive development of revenue 2013 and to keep profitable on high level in the current financial year. As a pre-approved supplier for government institutions and large state-owned enterprises we have successfully won the bidding process for a couple of big clients in our Uniforms segment, e.g. China Telecom, China Unicom, China Mobile and China Post. This proves together with our coherent strategy to increase our distribution network, that we are excellent positioned to successfully address future market demand." Richard Cao, CFO, adds: "Firstextile's further growth is currently limited by our capacities which are already fully utilized. With completing the construction phase of the new production facility by the end of 2014, we will be prepared for the high demand on our products in the long-term. Therefore, our focus is on the expansion plan. Due to this and the continuing positive economic environment we are very confident to reach our goals in 2014." Firstextile's revenue in the Fabrics segment amounted to EUR 26.8 million in Q1 2014 and was in line with the expectations for the fiscal year 2014. Compared to revenues of EUR 31.4 million in the first quarter of 2013, revenues decreased by 14.5% in the reporting period due to declines of both average selling price (ASP) and volume sold. This was to be expected due to the extraordinary development in Q1 2013 which was far ahead of plan. Gross profit also decreased at a larger pace by 24.3% to EUR 7.1 million (Q1 2013: EUR 9.4 million). Revenue in the Uniforms segment decreased to EUR 0.4 million in the first quarter of 2014 (Q1 2013: EUR 12.7 million). This development is due to the fact that Firstextile had no new bulk orders in the reporting period. Since revenue in the Uniforms segment generally depends on relatively few large orders, a fluctuation in revenue quarter-on-quarter in this segment is not exceptional. Gross profit decreased by 94.1% to EUR 0.1 million (Q1 2013: EUR 1.9 million) as a result of missing orders in the first quarter. In its third business, the Branded Products segment, revenues increased by 55.0% compared to the first quarter of 2013 and amounted to EUR 5.6 million (Q1 2013: EUR 3.6 million). The strong increase is due to the expended product portfolio since the second quarter of 2013. At once, this revenue increase reflects a sustainable improvement of the revenue situation in this segment year-on-year and shows the competitive strength of Firstextile's Branded Products. In this segment, gross profit increased to EUR 3.1 million (Q1 2013: EUR 2.8 million) and the gross profit margin still remained on a very high level of 54.7% in the first quarter of 2014 (Q1 2013: 78.7%). As of today, the complete 2014 three-month report can be downloaded from the company's website at www.firstextile.de, within the "Investor Relations" area. Company profile Firstextile is one of the leading manufacturers of high-end yarn-dyed fabrics in the Chinese market. It also markets fabrics and shirts specifically designed for uniforms used by Chinese government institutions and enterprises, as well as its own branded men's wear 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 in November 2012, will primarily be used to double annual production capacity from the current 36 million metres to 72 million metres by the end of 2014. End of Corporate News --------------------------------------------------------------------- 21.05.2014 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: Firstextile AG Lyoner Str. 14 60528 Frankfurt am Main Germany Phone: +49 (0) 69 6655 4416 Fax: +49 (0) 69 6655 4418 E-mail: [email protected] Internet: www.firstextile.de ISIN: DE000A1PG8V8 WKN: A1PG8V Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 269653 21.05.2014