Tintbright AG
Tintbright AG: Revenue growth continued to gain pace in the third quarter
Tintbright AG / Key word(s): 9-month figures Tintbright AG: Revenue growth continued to gain pace in the third quarter – Group revenue grew 5.6% to EUR 96.6 million in the first nine months (9M 2013: EUR 91.4 million) – Tintbright’s profit for the period was EUR 16.0 million (9M 2013: EUR 15.7 million) – Profit margins keep staying on a high level, the financial situation remains positive – The Management Board is considering additional controls to strengthen trust – Guidance for FY 2014 confirmed Hamburg, 25 November 2014 – Tintbright AG, the German holding company of a Chinese textile manufacturer (Prime Standard, ISIN DE000A1PG7W8, TBR), today publishes its financial figures on the first nine months of 2014. The pace of growth at Tintbright AG continued to gain momentum between July and September. Having increased by 0.4% in the first quarter and 6.0% in the second quarter, revenue rose by 8.9% in the third quarter. Although margins came under some slight pressure due to rising raw material prices and reduced pricing scope, they remained high. Sales and earnings Group revenue posted a rise of 5.6% year-on-year to EUR 96.6 million in the first nine months of 2014 (9M 2013: EUR 91.4 million). After adjustment for the depreciation of the operating currency, the renminbi, versus the euro, revenue grew by 7.6%. Revenue in the Weaving segment increased slightly, by 0.1%, to EUR 19.0 million in the reporting period (9M 2013: EUR 19.0 million). The Processing segment raised both prices and volumes, giving a 7.1% rise in revenues to EUR 77.6 million in the first nine months of 2014 (9M 2013: EUR 72.5 million). The gross profit rose 4.2% year-on-year to EUR 25.2 million in the first nine months of 2014 (9M 2013: EUR 24.2 million), accompanied by a slight reduction in the gross profit margin to 26.1% (9M 2013: 26.5%). The gross profit in the Weaving segment decreased slightly by 3.6% to EUR 2.9 million (9M 2013: EUR 3.0 million), while the gross profit in the Processing segment rose by 5.3% to EUR 22.3 million (9M 2013: EUR 21.2 million). As a result, the gross profit margin decreased to 15.2% in the Weaving segment (9M 2013: 15.8%) and to 28.8% in the Processing segment (9M 2013: 29.3%). This development stems principally from the rise in raw material costs, particularly for dyes and chemicals. However, most of the rise in raw material costs could be offset by focusing on higher quality end-products, a broader service offering and, in keeping with this, an increase in vertical integration. Increased advertising efforts, particularly billboard advertising, led to an increase in selling and distribution costs to EUR 1.3 million in the reporting period, up from EUR 0.8 million in the first nine months of 2013. Administrative expenses also rose substantially year-on-year from EUR 1.9 million to EUR 2.4 million. This was principally due to additional expenses in connection with the admission to the stock exchange and the associated listing. EBITDA was EUR 22.5 million in the reporting period, and thus around the prior-year-level. The same holds true for the operating result (EBIT), which amounted to EUR 21.5 million in the first nine months of 2014. In view of the markedly improved financial result, earnings before taxes increased to EUR 21.5 million (9M 2013: EUR 21.0 million). The pre-tax margin was therefore 22.3% (9M 2013: 23.0%). Tax expense was EUR 5.5 million in the reporting period (9M 2013: EUR 5.4 million). The profit for the first nine months of 2014 was EUR 16.0 million (9M 2013: EUR 15.7 million), giving an after-tax margin of 16.6% (9M 2013: 17.2%). Based on the number of shares listed on 30 September 2014 (2,000,000), earnings per share for the first nine months of 2014 were EUR 8.01 (9M 2013: EUR 7.85 (adjusted)). Accordingly, the company’s financial situation remains positive: The net cash provided by operating activities was EUR 9.7 million in the reporting period (9M 2013: EUR 4.4 million), accompanied by an increase in cash and cash equivalents not pledged to EUR 59.0 million in the reporting period (31 December 2013: EUR 49.4 million). The company still has no non-current liabilities and the equity ratio improved to 70.0% (31 December 2013: 67.9%). Outlook Earnings in the first nine months of the year were in line with the management’s expectations. While the first quarter was weaker for seasonal reasons, growth gathered pace in the second and third quarters, 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. The Management Board is also upholding its earnings forecast for fiscal 2014. Despite higher raw material costs and rising price pressure within the traditional textile industry, it still expects the pre-tax EBT margin to be 22-24%. “We have achieved a positive performance even though conditions were not always easy in the reporting period. Economic growth in China was lower than it has been for a long time, there was little foreign impetus, subsidies were reduced in favor of macro-economic intervention and rising raw material and labor costs are impairing the profitability of many companies. We skirted safely round all these obstacles thanks to our future-oriented alignment. However, we were unable to avoid the fallout from the alleged misappropriation of funds by another Chinese company that is listed on the German capital market. Regrettably, shares in Tintbright fell considerably as a result of the negative market sentiment. Nevertheless, they are still above the price at which they were first quoted at the start of this year. We are aware of the dangers of this situation and expressly dissociate ourselves from this case. In addition, the Management Board is considering which additional controls could help strengthen investors’ trust in Tintbright AG”, said Tianzhun Zhao, Chairman of the Management Board and founder of Tintbright AG. In light of the present negative sentiment on Chinese companies listed in Germany in general and, more particularly, the low interest in Tintbright’s shares, the company’s Management Board will not be present at this year’s German Equity Forum in Frankfurt am Main. The full interim report for the first nine months of FY 2014 will be published on 28 November 2014, then being 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
Tintbright AG
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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: | ir@tintbright.de | |
Internet: | www.tintbright.de | |
ISIN: | DE000A1PG7W8 | |
WKN: | A1PG7W | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin | |
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