DGAP-News: Tintbright AG / Key word(s): Interim Report/Quarter Results Tintbright AG: Tintbright AG increased margins considerably in the first quarter of 2014 30.05.2014 / 13:39 --------------------------------------------------------------------- Tintbright AG increased margins considerably in the first quarter of 2014 - Group revenue grew 0.4% to EUR 24.5 million (Q1 2013: EUR 24.4 million) - Profits developed disproportionately positive - Gross profit margin increased to 27.5% (Q1 2013: 25.1%) - Pre-tax margin improved to 22.7% (Q1 2013: 20.8%) - Net profit amounted to EUR 4.1 million (Q1 2013: EUR 3.8 million) - Guidance for FY 2014 confirmed Hamburg, 30 May, 2014 - Tintbright AG, the German holding company of a Chinese textile manufacturer (Prime Standard, ISIN DE000A1PG7W8, TBR), today published the interim report for the first three months of 2014. Thanks to its growing focus on high-quality fabrics, the increase in vertical integration and the expansion of services for its customers, Tintbright was able to escape the persistent pressure on margins in the traditional textile industry and actually raised margins considerably compared with the prior-year period. "We consider our results for the first three months of 2014 to be very pleasing. Although revenue growth was only moderate compared with the prior-year period, the increase in margins is a clear sign that our strategy of focusing on higher quality fabrics and our offering as a one-stop service provider are working. In the reporting period, we continued to invest in expansion of production capacity for the higher margin area of fabric processing and finishing to help us meet our clients' needs even better in the future and create scope for further growth. In all, our results in the first quarter were in line with our expectations and we are confirming our outlook for fiscal 2014," reports Tianzhun Zhao, Chairman of the Management Board and founder of Tintbright AG. Sales and earnings Group revenue posted a slight rise of 0.4% year-on-year to EUR 24.5 million in the first quarter of 2014 (Q1 2013: EUR 24.4 million). In the reporting period the renminbi (RMB) depreciated by around 1.1% against the euro so growth measured in RMB was correspondingly higher. While revenue in the Weaving segment dropped 1.3% to EUR 4.9 million (Q1 2013: EUR 5.0 million), revenue in the Processing segment rose by 0.9% to EUR 19.6 million (Q1 2013: EUR 19.4 million). As a result, the Processing segment's share of total Group revenue increased from 79.6% to 80.0%. The cost of sales fell 2.8% from EUR 18.3 million to EUR 17.7 million in the first three months of 2014. Raw materials accounted for 68.4% (Q1 2013: 74.3%) and thus made up the highest proportion of the cost of sales. The gross profit rose 10.1% year-on-year to EUR 6.7 million in the first quarter of 2014 (Q1 2013: EUR 6.1 million), accompanied by an improvement in the gross profit margin to 27.5% (Q1 2013: 25.1%). The gross profit in the Weaving segment increased slightly by EUR 0.1 million to EUR 0.8 million (Q1 2013: EUR 0.7 million), while the gross profit in the Processing segment rose more strongly to EUR 5.9 million (Q1 2013: EUR 5.4 million). As a result, the gross profit margin increased to 16.5% in the Weaving segment (Q1 2013: 13.8%) and to 30.2% in the Processing segment (Q1 2013: 28.0%). The rising margins result from the focus on higher quality end-products, a broader service offering and, in keeping with this, an increase in vertical integration. EBITDA was EUR 5.9 million in the reporting period, compared with EUR 5.7 million in the first quarter of 2013. The operating result (EBIT) increased to EUR 5.6 million in the reporting period (Q1 2013: EUR 5.3 million). In view of the slightly negative financial result, earnings before taxes were EUR 5.5 million (Q1 2013: EUR 5.1 million). The pre-tax margin therefore improved to 22.7% (Q1 2013: 20.8%). Tax expense was EUR 1.4 million in the reporting period (Q1 2013: EUR 1.2 million). The profit for the first three months of 2014 was therefore EUR 4.1 million (Q1 2013: EUR 3.8 million), giving an after-tax margin of 16.8% (Q1 2013: 15.7%). Based on the number of shares of 2,000,000 as of 31 March 2014, earnings per share for the first three months of 2014 were EUR 2.05 (Q1 2013: EUR 1.92 (adjusted)). The net cash flow from operating activities was EUR 6.5 million in the reporting period (Q1 2013: outflow of EUR 8.2 million). Cash and cash equivalents increased to EUR 55.7 million in the reporting period (31 March 2013: EUR 19.7 million). The company has no non-current liabilities. The equity ratio increased to 69.1% (31 December 2013: 67.9%). Tintbright's capital and financing structure is therefore still extremely sound and gives the company all necessary entrepreneurial freedom for further expansion. Outlook The Group's performance in the first quarter was in line with the Management Board's expectations so it is confirming its guidance for the full year. 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 still anticipates that the Group will grow revenue by around 10% in euros in 2014 (without taking currency effects into account). It expects to report a slight drop of 1-2% in the Weaving segment, but growth of around 15% in the higher-margin Processing segment. 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 still expects the Group's 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 full interim report for the first three months of FY 2014 is available at Investor Relations on the company's website at www.tintbright.de/en. 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 --------------------------------------------------------------------- 30.05.2014 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: Tintbright AG c/o HRG mbH, Ferdinandstr. 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 --------------------------------------------------------------------- 271404 30.05.2014