Corporate | 28 August 2014 08:42

Feike AG continues on its path of growth

Feike AG / Key word(s): Interim Report/Half Year Results

28.08.2014 / 08:42

Half-Year-Results 2014

Feike AG continues on its path of growth

– Revenues increased by 9.1% to 48.9 million Euros in H1 2014 (H1 2013: 44.8 million Euros)

– EBIT reached 12.6 million Euros corresponding to an EBIT margin of 25.8%

– Number of retail outlets increased by 240 from 2,120 as at 30 June 2013 to 2,360 as at 30 June 2014

Berlin, August 28, 2014 – Feike AG, the German holding company of the second largest manufacturer of children’s footwear in China*, maintained a steady operational and financial growth in the first six months of 2014: Feike realised revenues of 48.9 million Euros, exceeding last year’s revenues by 9.1%. This positive development is mainly contributed by the fact that the number of retail outlets selling Feike’s products was extended as planned. As at 30 June 2014, the wide range of products was distributed via 2,360 retail outlets comprising boutique outlets and points of sale. The number of retail outlets increased from 2,120 as at 30 June 2013 by 240 or 11.3%.

Under the “Feike”, “Atongmu” and “Lanmao” brands, the group offers footwear and apparel products for children in different price segments. During the reporting period the group was able to increase the number of units of footwear and apparel sold by 7.7% to 6.7 million (H1 2013: 6.2 million), while the average unit selling price increased by 1.3%.

Relying on its design and development efforts, Feike launched several new product designs during the first six months of 2014. In sum, Feike has designed and developed more than 2,050 product design samples, among which 679 product design samples were finally translated into mass production.

In the first six months of 2014, revenue for footwear products, including leather shoes, leisure shoes, beach shoes and cotton shoes, was 40.0 million Euros, accounting for 81.8% of the total revenues, representing an increase of 5.6% as compared to the reporting period in 2013. The revenue for apparel products, including jackets, pullover, shirts, shorts and trousers increased by 28.1% and contributed 8.9 million Euros to the total revenue.

The gross profit of Feike amounted to 16.2 million Euros, representing an increase of 17.4% as compared to the first half of last year. Furthermore, Feike underlines its profitability with an operating profit (EBIT) of 12.6 million Euros and an EBIT margin of 25.8%. Excluding the IPO expenses, EBIT and EBIT margin amounted to 13.8 million Euros and 28.2%, respectively. The net cash flow generated from operating activities increased from 14.1 million Euros in H1 2013 by 34.2% to 19.0 million Euros in H1 2014. In addition, Feike enjoys comfortable equity resources. During the reporting period the total equity grew by approx.
9 million Euros to 54.2 million Euros, representing an equity ratio of 66.1%. Feike’s cash position amounted 60.2 million Euros at the end of June 2014.

For the second half of 2014, the management board expects the relaxation of the one-child policy in China and rising disposable income to have a positive impact on the market of footwear and apparel for children as well as on Feike’s business development.

About Feike AG
Feike AG is the second largest manufacturer of children’s footwear in China*. The company sells its wide range of products comprising children’s shoes and clothing under three well-known brands – “Feike”, “Atongmu” and “Lanmao”. The sales network currently includes 2,360 retail outlets in 27 provinces of China. In 2013, Feike group employed more than 1,000 people at its production sites in Fujian Province and achieved revenues of 108.2 million Euros. Feike AG’s Shares are traded on the Frankfurt Stock Exchange under the ticker symbol FKE and ISIN DE000A1YCNB3.

*measured by the retail sales volume in 2012 according to the “Report on Children’s Apparel and Footwear Markets in China” prepared by the Smart Cube

For further Information, please contact:

Kirchhoff Consult AG

Andreas Friedemann
Tel: +49(0) 40 609 186 50
E-Mail: andreas.friedemann@kirchhoff.de
Website: http://www.feike-ag.com

Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Feike’s current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Feike’s forward-looking statements are proving to be incorrect, Feike’s actual results may be materially different from those expressed or implied by such forward-looking statements. Feike’s does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

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Language:	English
Company:	Feike AG
	c/o Kirchhoff Consult AG, Herrengraben 1
	20459 Hamburg
	Germany
Phone:	+49 (0)40 6091860
Fax:	+49 (0)40 60918660
E-mail:	feike@kirchhoff.de
Internet:	www.feike-ag.de
ISIN:	DE000A1YCNB3
WKN:	A1YCNB
Listed:	Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Düsseldorf

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