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

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Financing, Stock Offerings (IPO)/First day of trading

Subtitle: 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

Frankfurt am Main (euro adhoc) - November 12, 2012 - 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" 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.

Further inquiry note:
Firstextile AG
Maggie Wang
Lyoner Straße 14, 60528 Frankfurt am Main
Telefon: +86 (0) 1390 100 9306
E-Mail: maggie.wang@firstextile.com

cometis AG
Henryk Deter / Claudius Krause
Telefon: +49 (0) 611 205855 -13 / -28
Email: deter@cometis.de / krause@cometis.de

end of announcement euro adhoc
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company: Firstextile AG
Lyoner Str. 14
D-60528 Frankfurt am Main
WWW: http://www.firstextile.de
sector: Consumer Goods
ISIN: DE000A1PG8V8
indexes:
stockmarkets: designated to listed: regulated dealing/prime standard: Frankfurt
language: English