DGAP-News: Firstextile AG / Key word(s): Contract Firstextile AG: Newest uniform customer: China Mobile 21.08.2014 / 11:08 --------------------------------------------------------------------- Firstextile AG: Newest uniform customer: China Mobile - Framework agreement successfully signed with the 20th national-wide uniform customer China Mobile - Chinese telecom giant offers huge upside potential in the Uniform segment Jiangyin (China) / Frankfurt (Germany), 21 August 2014 - Firstextile AG (FT8) has recently successfully signed a framework agreement with China Mobile, one of the largest mobile telecommunications companies in China. Thereby all preconditions are fulfilled to receive orders in future. After winning the uniform bid of China Mobile and having received the Letter of Acceptance, Firstextile now gains the opportunity to supply uniforms to the Chinese telecom giant with nearly 600,000 employees with the conclusion of the contract. By signing the framework documents regarding the future cooperation at the end of the second quarter 2014, Firstextile has fulfilled all preconditions to supply uniforms to China Mobile as its short-listed supplier. For the time being, Firstextile is already the short-listed supplier of 20 government institutions and state owned enterprises, including the Chinese Military (PLA), China Security Association, China Railway, China Unicom, among others. Fred Yang, CEO and founder of Firstextile AG comments: "We are very glad to have successfully gone through the bidding process of China Mobile. This once again proves our competitiveness in the uniform market backed by our high product quality standard. Although we have been experiencing a difficult period of fewer bulk orders in the first quarter of 2014, we never stopped striving for new clients and orders. With China Mobile as a new milestone, we expect more to come." As one of the three business segments of Firstextile, the Uniform segment usually contributes 15% to 25% of the company's total revenue. However, the nature of this segment makes its performance dependent on the timing of bulk orders. Furthermore, due to the higher regulations, the bidding process in the uniform market became overall much more complicated and thus prolongs the whole process. Richard Cao, CFO of Firstextile comments: "During the second quarter we already saw a recovery in our uniform segment with an improving order momentum. Despite some delay, these orders will be reflected in revenues and earnings in the remaining period of 2014. Due to successfully having signed the framework agreement with China Mobile we expect additional positive effects in our Uniform segment and we are convinced that this will contribute to our performance substantially. Therefore, together with orders of our other top clients, we neither worry about our segmental performance, nor our overall performance in 2014." 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. --------------------------------------------------------------------- 21.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 --------------------------------------------------------------------- 283309 21.08.2014