DGAP-News: Tintbright AG / Key word(s): Half Year Results/Interim Report Tintbright AG: Revenue and profit growth at Tintbright AG continued in the first half of 2014 29.08.2014 / 16:28 --------------------------------------------------------------------- Revenue and profit growth at Tintbright AG continued in the first half of 2014 - Group revenue grew 3.5% - Profits rose even faster - Operating cash flow was EUR 6.2 million - Equity ratio improved to 69.4% - Guidance for FY 2014 confirmed Hamburg, 29 August 2014 - Tintbright AG, the German holding company of a Chinese textile manufacturer (Prime Standard, ISIN DE000A1PG7W8, TBR), today published its interim report on the first six months of 2014. With rising revenues and margins, an increasing focus on higher quality fabrics and one-stop services in line with the corporate strategy and a positive share price performance, the first half of 2014 was a period of constant growth at Tintbright. "The first half of 2014 was a very emotional period for us. The positive business trend was overshadowed by the sudden death of our co-founder and CEO, Yuehui Hong, at the end of June. Despite this sad event, we are continuing our constant endeavours to meet our customers' requirements even better and pave the way for further growth. By raising capacity for fabric dyeing in the first half of the year, we created a sound basis that we plan to continue by expanding capacity for fabric printing in the second half of the year", said Tianzhun Zhao, Chairman of the Management Board and founder of Tintbright AG. Sales and earnings Group revenue posted a rise of 3.5% year-on-year to EUR 57.2 million in the first six months of 2014 (H1 2013: EUR 55.3 million). In the reporting period, the renminbi (RMB) depreciated by around 2.8% against the euro so growth measured in RMB was correspondingly higher. While revenue in the Weaving segment dropped 0.9% to EUR 11.6 million (H1 2013: EUR 11.7 million), revenue in the Processing segment rose by 4.7% to EUR 45.6 million (H1 2013: EUR 43.5 million). As a result, the Processing segment's share of total Group revenue increased from 78.8% to 79.7%. The cost of sales rose 3.3% from EUR 40.9 million to EUR 42.3 million in the first six months of 2014, which was slightly lower than the rise in sales revenues. Raw materials accounted for 77.8% (H1 2013: 76.0%) and thus made up the highest proportion of the cost of sales. The gross profit rose 4.2% year-on-year to EUR 15.0 million in the first half of 2014 (H1 2013: EUR 14.4 million), accompanied by a slight improvement in the gross profit margin to 26.1% (H1 2013: 26.0%). The gross profit in the Weaving segment decreased slightly by 3.2% to EUR 1.7 million (H1 2013: EUR 1.8 million), while the gross profit in the Processing segment rose by 5.2% to EUR 13.2 million (H1 2013: EUR 12.6 million). As a result, the gross profit margin decreased to 15.1% in the Weaving segment (H1 2013: 15.4%) and increased to 28.9% in the Processing segment (H1 2013: 28.8%). The development stems 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 13.5 million in the reporting period, compared with EUR 13.3 million in the first half of 2013. The operating result (EBIT) increased to EUR 12.9 million in the reporting period (H1 2013: EUR 12.6 million). In view of the slightly negative financial result, earnings before taxes were EUR 12.9 million (H1 2013: EUR 12.3 million). The pre-tax margin therefore improved to 22.5% (H1 2013: 22.1%). Tax expense was EUR 3.3 million in the reporting period (H1 2013: EUR 3.1 million). The profit for the first six months of 2014 was therefore EUR 9.6 million (H1 2013: EUR 9.1 million), giving an after-tax margin of 16.7% (H1 2013: 16.0%). Based on the number of shares listed on 30 June 2014 (2,000,000), earnings per share for the first six months of 2014 were EUR 4.78 (H1 2013: EUR 4.57 (adjusted)). The net cash flow from operating activities was EUR 6.2 million in the reporting period (H1 2013: outflow of EUR 11.8 million). Cash and cash equivalents increased to EUR 53.2 million in the reporting period (31 December 2013: EUR 49.8 million). The company has no non-current liabilities. The equity ratio increased to 69.4% (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 half year was in line with the Management Board's expectations. While the first quarter was weaker for seasonal reasons, growth gathered pace in the second quarter, so the Management Board is confirming its guidance for the full year. Based on the present order situation, the Management Board still anticipates that the Group will grow revenue by around 10% in euros (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. This projection is based on the assumption that growth in domestic consumption in China and demand for one-stop services will continue to rise, and that export demand and the number of customers will remain stable. 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%. The full interim report for the first six 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. --------------------------------------------------------------------- 29.08.2014 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: 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 --------------------------------------------------------------------- 284781 29.08.2014