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Exceed Company Limited Fourth Quarter and Full Year 2012 Financial Results

  Exceed Company Limited Fourth Quarter and Full Year 2012 Financial Results

PR Newswire

FUJIAN, China, March 27, 2013

FUJIAN, China, March 27, 2013 /PRNewswire-FirstCall/ -- Exceed Company Ltd.
(NASDAQ: EDS) ("Exceed" or the "Company"), the owner and operator of the
"Xidelong" brand and one of the leading domestic sportswear brands in China,
today released its financial results for the fourth quarter and full year
ended December 31, 2012.

Financial Highlights - Fourth Quarter ended December 31, 2012 (unaudited)[1]

  oRevenue was RMB373.7 million (US$60.0 million), representing a 48.8%
    year-over-year decrease.
  oGross profit was RMB101.9 million (US$16.4 million), representing a 52.8%
    year-over-year decrease. Gross margin decreased from 29.6% for the same
    period in the 2011 to 27.3%.
  oOperating profit was RMB13.3 million (US$2.1 million), representing an
    83.6% year-over-year decrease.
  oNet profit was RMB10.6 million (US$1.7 million), representing a 75.0%
    year-over-year decrease.

Financial Highlights - Full Year ended December 31, 2012 (audited)[1] 

  oRevenue was RMB2,383.5 million (US$382.6 million), representing a 27.5%
    year-over-year decrease.
  oGross profit was RMB675.7 million (US$108.5 million), representing a 31.9%
    year-over-year decrease. Gross margin decreased from 30.2% for 2011 to
    28.3% for 2012.
  oOperating profit was RMB231.8 million (US$37.2 million), representing a
    53.5% year-over-year decrease.
  oNet profit was RMB198.9 million (US$31.9 million), representing a 57.7%
    year-over-year decrease.

    The Company's reporting currency is Renminbi ("RMB"). RMB numbers included
    in this press release have been translated into U.S. dollars at the rate
    of US$1.00 = RMB6.2301, the exchange rate refers to the exchange rate set
    forth in the H.10 statistical release of the Board of Governors of the
[1] Federal Reserve, on December 31, 2012. The translation of amounts from RMB
    to U.S. dollars is solely for the convenience of the reader. No
    representation is made that RMB amounts could have been, or could be,
    converted into U.S. dollars at that rate or at any other rate on December
    31, 2012.

Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "2012 proved to be
a challenging year for Exceed and the Chinese sportswear industry in general,
as on-going global macroeconomic uncertainties and tepid domestic economic
growth significantly impacted consumer demand across our product categories.
To effectively manage our business through this cyclical downturn, we have
proactively executed a number of tactical and strategic initiatives which we
believe have mitigated the impact of the market downturn. For example, we have
actively engaged our distributors and authorized third party retailers to
manage the level of wholesale orders that are placed with usbut not yet
manufactured, while scaling back production and delivery activities. Through
these initiatives, we are seeking to effectively align inventory levels with
consumer demand to minimize the volume of off-season inventory in our
distribution network. Although this strategy has negatively impacted our
revenue in the near-term, we believe it will help to strengthen our
competitive positioning over the mid- to long-term and allow us to maintain
our pricing power. By combining this strategy with our strategy of focusing on
marketing, promotions and new product developments, we believe that we have
successfully maintained our customer appeal, which would enable the Company to
gain market share once consumer demand picks up."

"While we have not been immune to the recent market downturn, we believe that
the Company remains fundamentally strong, and the Chinese sportswear industry
continues to present significant long-term growth opportunities. Our brand
image and product lines resonate with young and value-conscious shoppers
looking for fashionable and functional sportswear products at reasonable
prices, helping us to remain a leader in ourtarget market segment. We have
maintained profitability throughout the market downturn, and continue to have
significant financial resources at hand. We expect market conditions to remain
challenging through the first half of 2013, and as a result, we will continue
our current approach towards production and delivery. In addition, we will
remain focused on maintaining our lean operating structureby effectively
managing costs and on continuing to strengthen brand awareness. We believe
that these measures will allow us to maintain a competitive position in this
difficult market environment and place the company in a favorable position to
grow over the long-term."

Unaudited Fourth Quarter and Audited Fiscal Year 2012 Financial Results

Revenue breakdown

            Quarter Ended
            Dec 31,     Dec 31, 2012 % of    Dec 31, 2011 % of    Fourth
            2012                                                  Quarter
                        RMB'000      Revenue RMB'000      Revenue
            US$'000                                               YoY Growth
Footwear    31,096      193,731      51.8%   363,445      49.8%   (46.7%)
Apparel     27,780      173,075      46.3%   355,945      48.8%   (51.4%)
Accessories 1,113       6,932        1.9%    10,550       1.4%    (34.3%)
Total       59,989      373,738      100.0%  729,940      100.0%  (48.8%)
            Year Ended
            Dec 31,     Dec 31, 2012 % of    Dec 31, 2011 % of    Fiscal Year
            2012
                        RMB'000      Revenue RMB'000      Revenue YoY Growth
            US$'000
Footwear    183,760     1,144,843    48.0%   1,514,096    46.0%   (24.4%)
Apparel     192,322     1,198,186    50.3%   1,731,482    52.7%   (30.8%)
Accessories 6,499       40,487       1.7%    42,983       1.3%    (5.8%)
Total       382,581     2,383,516    100.0%  3,288,561    100.0%  (27.5%)

Revenue. The global macroeconomic environment had remained uncertain
throughout 2012, which had an adverse impact on the domestic Chinese economy
and sportswear industry. In addition, initial forecasts for sports product
demand for 2012 proved to be overly optimistic, leading to an industry-wide
build up of inventory levels. In response, most sportswear brands aggressively
cleared their excess inventory during the period. In light of the impact that
the market downturn has had on the Chinese sportswear industry and Exceed
specifically in 2012, and in an effort to maintain our competitive position,
pricing power and to manage inventory levels and the efficiency of our
distribution network, we enacted a number of strategic initiatives throughout
the year. Among others, we actively engaged our distributors and authorized
third party retailers to manage the level of wholesale orders placed with us
but not yet manufactured. And, in anticipation of weaker consumer demand, we
trimmed our production and delivery activities to prevent an inventory buildup
at our distributors. As a result, revenue for the fourth quarter of 2012 was
RMB373.7 million (US$60.0 million), a 48.8% decrease from RMB729.9 million for
the same period in 2011. Revenue decreased by 27.5%, from RMB3,288.6 million
for 2011 to RMB2,383.5 million (US$382.6 million) for 2012. The year-over-year
decrease in revenue was primarily due to a decrease in the volume of products
produced and delivered to distributors.

  oFootwear. Footwear accounted for 51.8% and 48.0% of revenue for the fourth
    quarter andfor the full year of 2012, respectively, and principally
    includes nine categories of footwear: running footwear, leisure footwear,
    basketball footwear, skateboarding footwear, canvas footwear, tennis
    footwear, outdoor footwear, vintage design footwear and cross-training
    footwear. A portion of our footwear production is outsourced.

    Revenue from footwear decreased by 24.4%, from RMB1,514.1 million for 2011
    to RMB1,144.8 million (US$183.8 million) for 2012, primarily due to a
    27.0% decrease in sales volume, which was partially offset by a 3.6%
    increase in the average selling price ("ASP"). The increase in ASP was
    mainly attributable to the improvement of the design and quality of
    certain of our footwear products lines to better align with consumer
    demand. Furthermore, our continuous marketing and brand promotion efforts
    also contributed to the increase in the ASP of our footwear products.

    Revenue from footwear was RMB193.7 million (US$31.1 million) for the
    fourth quarter of 2012, a decrease of 46.7% from RMB363.4 million for the
    same period in 2011.

  oApparel. Sports apparel accounted for 46.3% and 50.3% of revenue for the
    fourth quarter and for full year of 2012, respectively, and principally
    includes sports tops, sports pants, jackets and track suits. Our apparel
    production is entirely outsourced.

    Revenue from apparel decreased by 30.8%, from RMB1,731.5 million for 2011
    to RMB1,198.2 million (US$192.3 million) for 2012. This decrease was
    primarily due to a 26.3% decrease in sales volume and a 6.1% decrease in
    ASP. The decrease in ASP was mainly due to the increase in thesales of
    lower priced spring/summer collection apparel as a percentage of total
    apparel sales. For 2012, lower priced spring/summer collection apparel
    accounted for 51.3% of the total apparel sales, compared with 43.8% for
    2011. To a lesser extent, the decrease in ASP was also attributable to the
    introduction of a range of popular priced apparel products to target the
    mass marketand to better align with customer preferences.

    Revenue from apparel was RMB173.1 million (US$27.8 million) for the fourth
    quarter of 2012, a decrease of 51.4%, from RMB355.9 million for the same
    period in 2011.

  oAccessories. Accessories accounted for 1.9% and 1.7% of revenue for the
    fourth quarter and full year of 2012, respectively, and principally
    include sports caps, sports socks, bags and backpacks. Our accessories
    production is entirely outsourced.

    Revenue from accessories decreased by 5.8%, from RMB43.0 million for 2011
    to RMB40.5 million (US$6.5 million) for 2012. Revenue from accessories was
    RMB6.9 million (US$1.1 million) for the fourth quarter of 2012, a decrease
    of 34.3%, from RMB10.6 million for the same period in 2011. The
    decreasesfor the fourth quarter and for the full year of 2012 were
    primarily caused by the decline in overall sales of the other main
    products.

Gross profit and Gross profit margin. Gross profit for 2012 decreased by 31.9%
to RMB675.7 million (US$108.5 million) from RMB992.3 million for 2011,
primarily as a result of the decrease in revenue. Overall gross profit margin
for 2012 decreased to 28.3% from 30.2% for 2011, primarily as a result of the
increase in outsourcing cost, which was largely attributable to the increasing
costs of raw materials and labor of upstream manufacturers. We will continue
our efforts to maintain our gross margin by balancing product pricing and
production cost moving forward.

Gross profit for the fourth quarter of 2012 decreased by 52.8% to RMB101.9
million (US$16.4 million) from RMB215.7 million for the same period for 2011.
Gross profit margin decreased to 27.3% from 29.6% for the same period for
2011.

Other income and gains. Other income and gains increased by 2.6% to RMB3.9
million (US$0.6 million) for the fourth quarter of 2012 from RMB3.8 million
for the same period in 2011. Other income and gains increased by 7.4% to
RMB15.9 million (US$2.6 million) for 2012 from RMB14.8 million for 2011.

The increase in other income and gains for 2012 was mainly attributable to an
increase in interest income, which was derived from short-term time deposits,
with an average outstanding balance of RMB400.0 million (US$63.6 million)in
2012, bearing interest ranging from 2.85% to 3.10% per annum.The increase was
primarily due to the increase in the average interest rate for our short-term
time deposits.

Operating expenses. Total operating expenses for the fourth quarter of 2012
was RMB92.5 million (US$14.9 million), a decrease of 33.3% from RMB138.6
million for the same periodfor 2011. Total operating expenses for 2012 was
RMB459.8 million (US$73.8 million), a decrease of 9.6% from RMB508.8 million
for 2011.

Selling and distribution costs. Selling and distribution costs for the fourth
quarter of 2012 were RMB67.7 million (US$10.9 million), a decrease of 34.1%
from RMB102.8 million for the same period for 2011. Selling and distribution
costs for 2012 wereRMB347.7 million (US$55.8 million), a decrease of 8.0%,
from RMB377.9 million for 2011.

The decrease in selling and distribution costs for the fourth quarter and full
year was mainly due to a decrease in advertising and promotional expenses,
salaries of marketing personnel, travelling and entertainment expenses.
Advertising and promotional expenses decreased from RMB352.4 million for 2011
to RMB328.4 million (US$52.7 million) for 2012, primarily because fewer
Xidelong retail selling locations were opened during 2012. During 2012, 188
new Xidelong retail selling locations were opened and over 900 existing
Xidelong retail selling locations were renovated either by our distributors or
by third-party retailers, some of which received renovation subsidies from
Exceed in the form of standardized promotional materials and store displays.
In contrast, in 2011, 585 new Xidelong retail selling locations were opened
and over 400 existing Xidelong retail selling locations were renovated. We
continued to invest resources in marketingand advertisingto build our brand
recognition, enhance market penetration, and maintain unique store images. In
2012, our advertising and promotional activities continued to focus on events
relating to the Nationwide "Fitness for All" Sports Campaign organized by
China's General Administration of Sport, the government agency responsible for
sports activities in China, and we continuedour engagement of By2 as our
official productspokespersons. Furthermore, the decrease in salaries of
marketing personnel was primarily due to the decrease in the number of staff.
The decrease in selling and distribution costs reflects the effect of the
Company's cost-cutting initiatives, which resulted in a decrease in travelling
and entertainment expenses.

Administrative expenses. Administrative expenses for the fourth quarter of
2012 was RMB14.9 million (US$2.4 million), a decrease of 20.7% from RMB18.8
million for the same period in2011. Administrative expenses for 2012 was
RMB67.9 million (US$10.9 million), a decrease of 11.9% from RMB77.1 million
for 2011.

The decrease of administrative expenses for the fourth quarter and the full
year was primarily due to decreases inUrban Maintenance and Construction("UMC
Tax"), Educational Surcharge, Local Educational Surcharge, salaries of
administrative staff, rental expenses and employee share-based payment. Such
decreases, however, were partially offset by an increase in professional fees
and consultancy fees. Other taxes, including UMC Tax, Educational Surcharge,
Local Educational Surcharge, etc., decreased from RMB23.1 million for 2011 to
RMB16.9 million (US$2.7 million) for2012, primarily because of the decline in
revenue. Rental expenses decreased from RMB3.7 million for 2011 to RMB1.3
million (US$0.2 million) for 2012 mainly due to the reduction in size of the
Company's Beijing office.

Research and development expenses. Research and development expenses for the
fourth quarter of 2012 were RMB10.0 million (US$1.6 million), a decrease of
41.5% from RMB17.1 million for the same period in 2011. Research and
development expenses for 2012 was RMB44.2 million (US$7.1 million), a decrease
of 18.0% from RMB53.9 million for 2011.

The decrease in research and development expenses for the fourth quarter and
full year was primarily due to improved efforts to increase the efficiency of
our research and developmentactivities and the effect of our cost-cutting
initiatives.

Finance costs. Finance costs for the fourth quarter of 2012 were RMB0.3
million (US$40,000), an increase of 200.0% from RMB0.1 million for the same
period in 2011. The increase was mainly due to an increase in the average
outstanding balance of our short-term bank borrowings for the fourth quarter.

Finance costs for 2012 were RMB0.6 million (US$0.1 million), a decrease of
33.3% from RMB0.9 million for 2011, primarily due to the decrease in the
average outstanding balance of our short-term bank borrowings for 2012 and the
decrease in the average interest rate for our short-term bank borrowings.

Gain/(loss) from change in fair value of contingent share liability. No such
item was charged for 2012 as all the escrow and earn-out shares were released
to the former shareholders of Windrace International Company Limited
("Windrace"). However, the change in the fair value of contingent share
liability recorded a loss of RMB27.2 million for the fourth quarter of 2011,
and a gain of RMB38.6 million for the full year of 2011. The gain reflected
the decrease in the fair value of the conditional obligation to release and
issue shares to the former shareholders of Windrace, the acquiree of the
business combination, as part of the reverse recapitalization transaction
effective on October 21, 2009.

Profit before tax. As a result of the foregoing, profit before tax for the
fourth quarter of 2012 was RMB13.0 million (US$2.1 million), a decrease of
75.7% from RMB53.6 million for the same period in 2011. Profit before tax for
2012 was RMB231.2 million (US$37.1 million), a decrease of 56.9% from RMB536.0
million for 2011.

Tax. Tax expenses for the fourth quarter of 2012 were RMB2.4 million (US$0.4
million), compared to RMB11.1 million for the same period for 2011. The
effective tax rates for the fourth quarter of 2012 and 2011 were 18.5% and
20.7%, respectively.

Tax expenses decreased by 51.1% from RMB65.9 million for 2011 to RMB32.2
million (US$5.2 million) for 2012 primarily due to the decrease in profit
before tax by 56.9% from RMB536.0 million in 2011 to RMB231.2 million (US$37.1
million) in 2012. Xidelong (China) Co. Ltd. isentitled to a 50% reduction in
the PRC corporate income tax until December 31, 2012, after which it will be
subject to the standard tax rate of 25%. The effective tax rate for 2012 and
2011 were 13.9% and 12.3%, respectively.

Profit. As a result of the above factors, profit for the fourth quarter of
2012 was RMB10.6 million (US$1.7 million), a decrease of 75.0% from RMB42.4
million for the same periodfor 2011. Profit for 2012 was RMB198.9 million
(US$31.9 million), a decrease of 57.7% from RMB470.1 million for 2011.

Balance Sheet

Inventory. The average inventory turnover days for the fourth quarter of 2012
and 2011 were 7 days and 8 days, respectively. The average inventory turnover
days for 2012 and 2011 were 5 days and 6 days, respectively. The average
inventory turnover days and inventory to revenue ratio remained relatively
stable as a result of our effective production planning, procurement control
and logistics management.

Trade receivables. The average trade receivables turnover days for the fourth
quarter of 2012 and 2011 were 274 days and 93 days, respectively. The average
trade receivables turnover days for 2012 and 2011 were 137 days and 73 days,
respectively. The unfavourable market conditions have lengthened the time
required for our distributors to settle their invoices. As a result, we have
been closely monitoring trade receivable balances that are overdue by 30 days
or more by taking into account, among others, the ability and intent of the
distributor to settle theoutstanding balance. We, however, do not make any
provision for the overdue balance if (1) we have ongoing tradingrelationship
with the distributor; (2) we have received payments on other invoices from the
distributor; and (3) we do not have on-going disputes on the amount overdue
with the distributor.

Trade payables. The average trade payables turnover days for the fourth
quarter of 2012 and 2011 were 9 days and 17 days, respectively. The average
trade payables turnover days for 2012 and 2011 were 7 days and 14 days,
respectively. Average trade payables turnover days decreased as a result of
our decision to opt for the bulk purchase discounts offered byour suppliersand
manufacturers in exchange for quicker payment for raw materials and finished
products.

Cash and cash equivalents. Cash and cash equivalents decreased to RMB637.2
million (US$102.3 million) as of December 31, 2012 from RMB693.7 million as of
September 30, 2012, and from RMB964.3 million as of December 31, 2011,
primarily as a result of cash flow used in operating activities of RMB229.3
million (US$36.8 million)as described in more detail below.

Cash Flow. Cash inflow from operating activities for the fourth quarter of
2012 was RMB47.5 million (US$7.6 million) compared to an inflow of RMB70.2
million for the same period for 2011.

For 2012, our net cash outflow from operating activities was RMB229.3 million
(US$36.8 million) and was primarily attributable to an increase in trade
receivables of RMB384.6 million (US$61.7 million), a decrease in trade
payables of RMB51.1 million (US$8.2 million) and PRC tax paid of RMB41.0
million (US$6.6 million) which was partially offset by profit before tax of
RMB231.2 million (US$37.1 million), and an add back of the non-cash expenses
in the amount of RMB24.9 million (US$4.0 million), including depreciation of
property, plant and equipment, amortization of intangible assets and expense
recognized in respect of equity-settled share-based payments.

Business Highlights and Outlook

  oExpansion of sales and distribution network

       oThere were 4,909 Xidelong retail selling locations as of December 31,
         2012, a net increase of 65 locations compared with December 31, 2011.
         Our retail selling locations are operated either by our distributors
         or by authorized third party retailers.

  oMarketing initiatives and brand recognition

       oWe use the "happy lifestyle" theme in our promotional activitiesand
         product offerings and continue to engage By2, a popular Taiwan-based
         musical group, as our product spokesperson. We will maintain these
         promotional initiatives as they have been effective in enhancing the
         "Xidelong" brand image.
       oThe Company was selected as the official partner of the "Fitness for
         All" Sports Campaign for the third consecutive year, and continued to
         sponsor the "Fitness for All" program for 2012.

2013 Business Outlook

The Company expects economic conditions in 2013 to remain unfavorable and
believes that consumer demand for sportswear products in China will remain
generally weak. In light of this assessment, the Company will continue to
carefully calibrate production levels totailor to projected changes in
consumer demand, which varies from time to time, while proactively working
with its distributors and authorized third party retailers to maintain
inventory at steady levels.

As a result of the foregoing, Exceed expects that net revenues in 2013 will be
adversely affected by the sluggish economic conditions and industry-wide
inventory level correction.

Investor Conference Call / Webcast Details

The Company's senior management will host a conference call on Thursday, March
28, 2013 at 6:00 am (US Pacific) / 9:00 am (US Eastern) / 9:00 pm (Beijing) to
discuss the Company's 2012 full year financial results and recent business
activity. The conference call may be accessed by dialing:

                     Toll Free      Toll
- United States    1 866 519 4004
-  China            800 819 0121
- China (Mobile)   400 620 8038
- Hong Kong        800 930 346    852 2475 0994
- United Kingdom   0808 234 6646
- International                   1 718 354 1231
Participant Passcode "EDS"

Please dial in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following
numbers until April 4, 2013:

                                Toll Free                      Toll
-  United States/International 1 855 452 5696                 1 646 254 3697
- China                       10800 870 0205/ 10400 120 0932
- Hong Kong                   852 3051 2780
- United Kingdom              0808 234 0072
Participant Passcode            60344567

Additionally, a live and archived webcast of the conference call will be
available on the investor relations section of Exceed's website at
http://www.ir.xdlong.cn.

About Exceed Company Ltd.

Exceed Company Ltd. designs, develops and engages in wholesale of footwear,
apparel and accessories under its own brand, XIDELONG, in China. Since it
began operations in 2002, Exceed has targeted its growth on the consumer
markets in the second and third-tier cities in China. Exceed has three
principal categories of products: (i) footwear, which comprises running,
leisure, basketball, skateboarding and canvas footwear, (ii) apparel, which
mainly comprises sports tops, pants, jackets, track suits and coats, and (iii)
accessories, which mainly comprise bags, socks, hats and caps. Exceed Company
Ltd. currently trades on Nasdaq under the symbols "EDS".

Safe Harbor Statement

This announcement contains forward-looking statements that are based on our
current expectations, assumptions, estimates and projections about us and our
industry. All statements other than statements of historical fact in this form
are forward-looking statements. These forward-looking statements can be
identified by words or phrases such as "may", "will", "expect", "anticipate",
"estimate", "plan", "believe", "is/are likely to" or other similar
expressions.

These forward-looking statements involve various risks and uncertainties.
Although we believe that our expectations expressed in these forward-looking
statements are reasonable, we cannot assure you that our expectations will
turn out to be correct. Our actual results could be materially different from
and worse than our expectations. A number of factors could cause actual
results to differ materially from those contained in these forward-looking
statements, including but not limited to changes in our goals and strategies,
our ability to control costs and expenses, success of our products,
competition in the sportswear industry in China, and changes in PRC government
preferential tax treatment and financial incentives. The forward-looking
statements made in this announcement relate only to events or information as
of the date on which this announcement is published. We undertake no
obligation to update any forward-looking statements to reflect events or
circumstances after the date this announcement is published or to reflect the
occurrence of unanticipated events.

Contacts:
Taylor Rafferty (HK):      Taylor Rafferty (US):

Candy Cheung               Mahmoud Siddig

+852 3196 3712             +1 (212) 889-4350

Exceed@Taylor-Rafferty.com Exceed@Taylor-Rafferty.com

- FINANCIAL TABLES TO FOLLOW -



EXCEED COMPANY LTD. AND SUBSIDIARIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME


                                     Year ended December 31               Three months ended December 31
                                     2012       2012         2011         2012         2012         2011
                                     US$'000    RMB'000      RMB'000      US$'000      RMB'000      RMB'000
                                     (Audited)  (Audited)    (Audited)    (Unaudited)  (Unaudited)  (Unaudited)
Revenue                              382,581    2,383,516    3,288,561    59,989       373,738      729,940
Cost of sales                        (274,121)  (1,707,801)  (2,296,298)  (43,627)     (271,801)    (514,257)
Gross profit                         108,460    675,715      992,263      16,362       101,937      215,683
Other income and gains               2,555      15,917       14,791       621          3,866        3,844
Selling and distribution costs       (55,807)   (347,680)    (377,903)    (10,860)     (67,653)     (102,771)
Administrative expenses              (10,904)   (67,932)     (77,073)     (2,390)      (14,891)     (18,760)
Researchanddevelopmentexpenses (7,099)    (44,227)     (53,863)     (1,606)      (10,005)     (17,098)
OPERATING PROFIT                     37,205     231,793      498,215      2,127        13,254       80,898
Finance costs                        (102)      (638)        (856)        (40)         (252)        (97)
Gain/(loss) from change in fair
value of
contingent share liability           -          -            38,645       -            -            (27,249)
PROFIT BEFORE TAX                    37,103     231,155      536,004      2,087        13,002       53,552
Tax                                  (5,171)    (32,213)     (65,922)     (380)        (2,368)      (11,129)
PROFIT FOR THE YEAR/PERIOD           31,932     198,942      470,082      1,707        10,634       42,423





EXCEED COMPANY LTD. AND SUBSIDIARIES



CONDENSED STATEMENTS OF FINANCIAL POSITION


                                                                                        As of
                                                       As of December 31                September30
                                                       2012       2012       2011       2012
                                                       US$'000    RMB'000    RMB'000    RMB'000
                                                       (Audited)  (Audited)  (Audited)  (Unaudited)
NON-CURRENT ASSETS
Property, plant and equipment                          53,115     330,914    284,314    281,365
Prepaid land lease payments                            4,350      27,103     27,851     27,290
Depositpaidforacquisitionoflanduserights 24,074     149,986    73,030     73,030
Total non-current assets                               81,539     508,003    385,195    381,685
CURRENT ASSETS
Inventories                                            1,871      11,655     31,589     32,366
Trade receivables                                      174,080    1,084,535  699,891    1,145,583
Prepayments, deposits and other receivables            3,915      24,396     4,765      36,844
Cash and cash equivalents                              102,275    637,184    964,317    693,744
Total current assets                                   282,141    1,757,770  1,700,562  1,908,537
CURRENT LIABILITIES
Trade and bills payables                               1,417      8,831      59,941     45,514
Deposits received, other payables and accruals         9,900      61,681     52,304     78,598
Interest-bearing bank borrowings                       4,815      30,000     -          10,000
Tax payable                                            378        2,357      11,098     5,258
Total current liabilities                              16,510     102,869    123,343    139,370
NET CURRENT ASSETS                                     265,631    1,654,901  1,577,219  1,769,167
Net assets                                             347,170    2,162,904  1,962,414  2,150,852
STOCKHOLDER'S EQUITY
Share capital                                          4          23         20         23
Treasury shares                                        (2,552)    (15,898)   (11,549)   (15,898)
Retained profits                                       269,485    1,678,920  1,502,398  1,669,815
Reserves                                               80,233     499,859    471,545    496,912
Total equity                                           347,170    2,162,904  1,962,414  2,150,852





EXCEED COMPANY LTD. AND SUBSIDIARIES



CONDENSED STATEMENTS OF CASH FLOWS


                                                                Year ended December 31           Three months ended December 31
                                                                2012       2012       2011       2012         2012         2011
                                                                US$'000    RMB'000    RMB'000    US$'000      RMB'000      RMB'000
                                                                (Audited)  (Audited)  (Audited)  (Unaudited)  (Unaudited)  (Unaudited)
Net cash inflow/(outflow) from operating activities             (36,809)   (229,319)  320,435    7,623        47,491       70,240
Netcashoutflowfrominvestingactivities (19,805)   (123,391)  (87,120)   (19,905)     (124,009)    (39,439)
Net cash inflow/(outflow) from financing activities             4,126      25,707     (29,079)   3,216        20,038       (26,138)
Effect of exchange rate changes                                 (21)       (130)      (2,717)    (13)         (80)         (2,959)
Net increase/(decrease) in cash and cash equivalents            (52,509)   (327,133)  201,519    (9,079)      (56,560)     1,704
Cash at beginning of the year/period                            154,784    964,317    762,798    111,354      693,744      962,613
Cash at end of the year/period                                  102,275    637,184    964,317    102,275      637,184      964,317



SOURCE Exceed Company Ltd.

Website: http://www.ir.xdlong.cn