Firstextile AG: First day of trading on the Prime Standard of the Frankfurt Stock Market

Frankfurt am Main, (PresseBox) - .
- Successful listing of shares of China's leading manufacturer of high-end yarn-dyed fabrics on November 12th
- Issue volume of EUR 18 million with a placing price of EUR 10.00 per share

The shares of Firstextile AG (FT8) will be traded on the Prime Standard of the Frankfurt Stock Exchange for the first time today. A total of 1.8 million new ordinary bearer shares were assigned predominantly to institutional investors and wealth managers based in continental Europe and the UK. The placing price was set at EUR 10.00 per share. Macquarie Capital (Europe) Limited acted as Sole Global Coordinator and Sole Bookrunner for the transaction, with M.M. Warburg & Co KGaA acting as Co-Lead Manager.

Founder and CEO Fred Yang commented: "In the last few weeks we had a very busy schedule and met with numerous investors. We are proud that we were able to realise this project despite the current challenging IPO conditions. We view the successful completion of our IPO as a confirmation that the strategy we have set out for the company is appealing to investors, and that they believe in the future growth and potential of our company."

Since its foundation in 2006 in Jiangsu Province, China, as one of the main centres of the Chinese textile industry, Firstextile has seen continuous growth. CFO Richard Cao commented: "Over the past three years we have been able to raise annual revenues by a compound annual growth rate (CAGR) of 43% to reach around EUR 131.7 million in 2011. The net proceeds from the IPO will primarily be used to double the production capacity, which in turn will unlock further growth potential." In the 2011 financial year, Firstextile's earnings before interest and taxes (EBIT) amounted to EUR 29.4 million (EBIT margin 22.3%). Revenues increased further in the first six months of 2012 to EUR 79.5 million (+35.3% compared with first half-year 2011), while EBIT rose to EUR 19.1 million (+49.7% compared with the first half-year 2011).

With a market share of 9% in 2011 of the Chinese high-end yarn-dyed fabric market, Firstextile is the market leader in this segment. In 2011 and the first six months of 2012 the fabric segment accounted for 77% and 59% of the company's revenues, respectively. The high-end segment is forecasted to be the fastest growing segment in the whole yarn-dyed fabric market. The high-end is expected to grow with a volume CAGR of 14% between 2011 and 2014, compared to 5% and 4% respectively for medium and low-end yarn-dyed fabric.

Firstextile also produces fabric and shirts specifically designed for uniforms used by the Chinese government institutions and enterprises. The diversification into the Chinese uniform market provides non-cyclical, stable revenue streams that are less impacted by retail consumer demand. As a short-listed supplier for 19 government institutions and enterprises, Firstextile is entitled to participate in the tender for the orders of uniform fabric and uniform suits. The value of the Chinese uniform shirt market is expected to grow at a CAGR of 12% until 2014. In 2011 the uniform segment accounted for 14% of Firstextile's revenue and contributed 30% of the revenue in the first half-year of 2012.

Through its third business division, the shirt segment, Firstextile sells premium men's shirts under its own "Varpum" (范佰) and "Firstextile" brands. This business was initiated in 2009 and caters to the rising demand for high-quality products, exclusive brands as well as to the general strong increase in demand for luxury apparel by Chinese consumers. In 2011 and in the first half-year of 2012, 9% and 11% of Firstextile's revenues, respectively, were generated through the sale of branded men's shirts. The Chinese apparel market for luxury and premium products continues to report strong growth as China is expected to become the world's largest luxury goods consumer market by 2015.

Firstextile is headed by a highly experienced management team commanding extensive know-how in the textile and financial industries. Company founder and CEO Fred Yang draws on more than 15 years of experience in the textile industry, and his innovative ideas are the main drivers behind the company's success. James Fu, COO, joined Firstextile in 2006 after working for more than 19 years in the banking and textile sectors. The CFO of the company, Richard Cao, worked for eight years as an auditor at Deloitte before joining Firstextile in 2011. Maggie Wang came on board as Investor Relations Officer and General Counsel in 2011 after working for eight years in legal affairs in law firms and multinational companies, such as Motorola and Amazon.

Disclaimer

This announcement has been prepared by Firstextile and is the sole responsibility of Firstextile. This press release does not constitute a prospectus and constitutes neither an offer to sell nor a solicitation to buy securities of Firstextile AG. The offered securities have already been placed with investors.

This document is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares of Firstextile AG (the 'Shares') have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act') and may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, in the United States unless registered under the Securities Act or pursuant to an exemption from such registration and in compliance with any applicable securities laws of any State or other jurisdiction of the United States.

There will be no public offering of the Shares in the United States and the Shares will not be registered under the Securities Act.

This communication is only addressed to, and directed at, persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive ("Qualified Investors"). For the purposes of this provision, the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each member state of the European Economic Area which has implemented the Prospectus Directive. In addition, in the United Kingdom, this communication is being distributed only to, and is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments who fall within the definition of "investment professional" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) who are high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order, and (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. This communication must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors.

Macquarie Capital (Europe) Limited, who are authorised and regulated in the United Kingdom by the Financial Services Authority, are acting as Sole Global Coordinator and Sole Bookrunner for the Company and no-one else in connection with the potential offering of securities by the Company and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Macquarie Capital (Europe) Limited or for providing advice in relation to the potential offering of securities by the Company.

In connection with the Offering, Macquarie Capital (Europe) Limited (the "Stabilising Manager") (or persons acting on behalf or for the account of the Stabilising Manager) may effect transactions with a view to supporting the market price of the shares at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager (or persons acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation action may begin on the first day of trading of the Company's shares on the Frankfurt Stock Exchange and must be completed no later than the 30th calendar day after such date.

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