FUJIAN, China, Aug. 23 /PRNewswire-Asia-FirstCall/ -- Exceed Company Ltd. ("Exceed" or "the Company"), the owner and operator of "Xidelong" brand -- one of the leading domestic sportswear brands in China, today released its unaudited financial results for the second quarter ended June 30, 2010.
Financial Highlights - Second quarter ended June 30, 2010 -- Revenue was RMB640.7 million, representing a 50.4% year-over-year increase. -- Gross profit was RMB210.6 million, representing a 63.8% year-over-year increase. Gross margin was 32.9%, representing a 2.7 percentage point increase as compared to 30.2% for the second quarter of 2009. -- Operating profit was RMB105.7 million, representing a 41.1% year-over-year increase. -- Net profit was RMB90.1 million, representing a 37.3% year-over-year increase.
Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "I am pleased to report a strong set of results for the second quarter of 2010. We continue to benefit from macroeconomic trends and the quickly-growing consumer market in China, particularly in China's second- and third-tier cities. Our advertising campaign enhanced our brand recognition and helped us to create a strong demand from our end customers and to achieve a higher price premium; this encouraged our distributors to expand our sales network and further drove our revenue growth during the quarter. Diligent production cost controls also contributed to our improved gross margin during the period.
"The growing need for sportswear products that is linked to a changing lifestyle in China will continue to fuel demand for our products. The recent minimum wage increase will further drive demand in third-tier cities, where we have a strong market position and which continue to be our target market segment. With our focused growth strategy to deepen our market penetration within targeted segments and to further enhance our brand value through effective marketing initiatives, we are confident that we will be able to fully leverage the market opportunity and deliver significant growth in the coming quarters."
Second Quarter 2010 Financial Results Revenue breakdown Six months ended Three months ended Three months ended June 30 June 30 June 30 2010 As % of 2010 As % of 2009 As % of RMB'000 revenue RMB'000 revenue RMB'000 revenue Footwear 607,912 50.2% 326,769 51.0% 241,342 56.7% Apparel 591,996 48.9% 307,877 48.1% 180,123 42.3% Accessories 10,626 0.9% 6,071 0.9% 4,408 1.0% Total 1,210,534 100.0% 640,717 100.0% 425,873 100.0% 2010 Q2 vs. 2009 Q2 growth % Footwear 35.4% Apparel 70.9% Accessories 37.7% Total 50.4%
The Company's reporting currency is Renminbi ("RMB"). RMB numbers included in this press release have been translated into U.S. dollars at the noon buying rate for U.S. Dollars in effect on June 30, 2010 in the City of New York for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York, which was US$1.00=RMB6.7815. The translation of amounts from RMB to United States 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 June 30, 2010.
Our revenue is derived primarily from sales of the following products: -- Footwear. Footwear accounted for 51.0% of revenue for the second quarter ended June 30, 2010 and principally includes seven categories of footwear: running footwear, leisure footwear, basketball footwear, skateboarding footwear, canvas footwear, tennis footwear and outdoor footwear. A portion of our footwear production is outsourced. -- Apparel. Sports apparel accounted for 48.1% of revenue for the second quarter ended June 30, 2010 and principally includes sports tops, sports pants, jackets and track suits. All of our apparel production is outsourced. -- Accessories. Accessories accounted for 0.9% of revenue for the second quarter ended June 30, 2010 and principally include bags, socks, hats and caps. All of our accessories production is outsourced.
Revenue. Revenue increased by 50.4% from RMB425.9 million for the second quarter ended June 30, 2009 to RMB640.7 million for the second quarter ended June 30, 2010. Since 2010, the Xidelong brand has used the phase "happy lifestyle" as the main theme in its promotion activities and product offerings. The increase in revenue was primarily driven by results from the new advertising and promotion campaign, as well as the successful launch of new series of apparel and footwear products. Meanwhile, strong demand from end customers encouraged the expansion of the Xidelong retail network by our distributors. The number of the Xidelong retail stores increased by 576, from 3,411 as of June 30, 2009 to 3,987 as of June 30, 2010.
-- Revenue from footwear increased by 35.4%, from RMB241.3 million for the second quarter ended June 30, 2009 to RMB326.8 million for the second quarter ended June 30, 2010, primarily due to a 27.7% increase in sales volume and a 6.0% increase in average selling price ("ASP"). The increase was mainly attributable to strong growth in the sales of new series of running footwear and leisure footwear, which were marketed using the "happy lifestyle" theme. -- Revenue from apparel increased by 70.9%, from RMB180.1 million for the second quarter ended June 30, 2009 to RMB307.9 million for the second quarter ended June 30, 2010. This increase was primarily due to a 47.3% increase in sales volume and a 16.0% increase in ASP. The increase in product varieties, particularly the new lifestyle apparel products, has created a strong demand from end customers. In addition, the increase in the average size of the Xidelong retail stores, with larger display areas for apparel, has attracted more customer traffic. The increased consumer recognition of our Xidelong brand as a result of our continuous marketing and brand promotion efforts also contributed to the increase in ASP of the apparel products. -- Revenue from accessories increased by 37.7%, from RMB4.4 million for the second quarter ended June 30, 2009 to RMB6.1 million for the second quarter ended June 30, 2010. This increase was primarily driven by an increase in product varieties.
Gross profit and Gross profit margin. Gross profit increased by 63.8%, to RMB 210.6 million for the second quarter 2010 from RMB128.6 million for the same period 2009. Gross margin increased by 2.7 percentage points, from 30.2% for the second quarter ended June 30, 2009 to 32.9% for the second quarter ended June 30, 2010. This was primarily due to the increase in the ASP of our apparel products. The successful new advertising and promotion campaign has enhanced our brand recognition and we could therefore offer lifestyle apparel products in a higher price range. As a certain portion of footwear products were manufactured in-house, cost controls within our own footwear production process were improved, further enhancing the overall gross margin in this period.
Other income and gains. Other income and gains represented governmental award and bank interest income. The increase from RMB0.2 million for the second quarter ended June 30, 2009 to RMB4.5 million for the second quarter ended June 30, 2010 was mainly due to our receipt of a governmental award in the amount of RMB4.1 million in recognition of the Company's listing on NASDAQ and an increase in interest income, reflecting the higher average bank balance from strong business growth and proceeds from the NASDAQ listing in late 2009.
Operating expenses
Selling and distribution costs. Selling and distribution costs increased by 150.7%, from RMB33.9 million for the second quarter ended June 30, 2009 to RMB85.0 million for the second quarter ended June 30, 2010. The increase was mainly due to the increase in advertising and promotional expenses as a percentage of sales by approximately 5.4 percentage points, from 7.0% for the second quarter ended June 30, 2009 to 12.4% for the same period in 2010. Advertising and promotional expenses increased by 168.4%, from RMB29.7 million for the second quarter ended June 30, 2009 to RMB79.7 million for the second quarter ended June 30, 2010, primarily due to a new television advertising campaign, as well as in store displays to promote "happy lifestyle", the new main theme of the Xidelong brand. The brand has been sponsoring the "Inter-City" television program, a popular entertainment show featuring athletic challenges that has aired on channels CCTV 1 and 5 since early 2010.
Administrative expenses. Administrative expenses increased by 3.2%, from RMB12.4 million for the second quarter ended June 30, 2009 to RMB12.8 million for the second quarter ended June 30, 2010 primarily due to increased legal and consulting fees and other professional fees after the NASDAQ listing.
Research and development expenses. Research and development expenses increased by 53.9%, from RMB7.6 million for the second quarter ended June 30, 2009 to RMB11.7 million for the second quarter ended June 30, 2010, primarily due to the increase in expenses associated with the design of new products and product parts, as well as our research and development efforts with the China Institute of Sport Science and the Hefei Institute of Intelligent Machines.
Accordingly, total operating expenses increased by approximately 103.5% to RMB109.5 million for the second quarter ended June 30, 2010 from RMB53.8 million for the same period in 2009.
Finance costs. Finance costs decreased by 93.1 %, from RMB8.7 million for the second quarter ended June 30, 2009 to RMB0.6 million for the second quarter ended June 30, 2010, primarily due to preferred shares issued to Elevatech on March 28, 2008, carrying an interest rate of 12% were redeemed at the time of business combination in late 2009.
Profit before tax. As a result of the foregoing, profit before tax increased by 58.6%, from RMB66.2 million for the second quarter ended June 30, 2009 to RMB105.0 million for the second quarter ended June 30, 2010.
Tax. Tax expenses increased from RMB0.6 million for the second quarter ended June 30, 2009 to RMB15.0 million for the second quarter ended June 30, 2010, primarily because the full exemption period of Xidelong (China) Co. Ltd., our principal PRC subsidiary, from PRC corporate income tax expired on December 31, 2009. The subsidiary, however, will be entitled 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 the period was 14.3%.
Profit. As a result of the above factors, profit for the second quarter ended June 30, 2010 was RMB90.1 million, an increase of 37.3% from RMB65.6 million for the second quarter ended June 30, 2009.
Balance Sheet
Inventory. The average inventory turnover days for the second quarters ended June 30, 2010 and 2009 were 14 days and 18 days, respectively. Inventory turnover days decreased mainly due to our improved production planning, procurement control and logistics management.
Trade receivables. The average trade receivables turnover days for the second quarters ended June 30, 2010 and 2009 were 102 days and 95 days, respectively. This was within the credit period given to our distributors.
Our credit period was extended from two months to four months in 2009 to ease the financial tension of our distributors after the global financial crisis; however, we have reviewed and tightened our credit control policy in 2010, given the business and financial status of our distributors as returned to normal. As a result, the trade receivables balance decreased to RMB570.4 million as of June 30, 2010, from RMB812.7 million as of December 31, 2009. We will continue our effort to maintain the trade receivables balance.
Trade payables. The average trade payables turnover days for the second quarters ended June 30, 2010 and 2009 were 36 days and 55 days, respectively. This was in line with our general policy to pay our suppliers and manufacturers within 30 to 90 days.
Cash and bank balances and pledged time deposits. Cash and bank balances and pledged time deposits increased to RMB538.4 million as of June 30, 2010 from RMB277.2 million as of December 31, 2009, primarily as a result of shorter payment time from our distributors.
Business Highlights and Outlook -- Expansion of sales and distribution network to 3,987 retail stores as of June 30, 2010; -- Use of the "happy lifestyle" theme in promotional activities and product offerings; -- Sponsoring the "Inter-City" television program, a popular entertainment show featuring athletic challenges that has aired on channels CCTV 1 and 5; -- Since second half of 2010: -- Sponsorship of "Fitness for All" Sports Campaign; and -- Engagement of By2, a popular Taiwan-based musical group, to act as the Xidelong's official product series spokespersons. Third Quarter Fiscal 2010 Guidance
Exceed expects to generate net revenues in the range of RMB795 million to RMB815 million in the third quarter of 2010, representing an approximately 20% to 23% year-over-year increase compared with RMB661.7 million in the same period of 2009. During the last several years, autumn in China has been relatively hot and short as a result of global warming. Retailers have tended to order more summer products and fewer autumn products. The Company mainly delivered its summer products during the first half of the year, and its autumn products during the third quarter. As the weather has been unstable so far this year, we do not expect third quarter revenue growth to be as strong as during the first half of 2010. This forecast reflects the Company's current and preliminary view, and is subject to change.
Restatement of Audited Consolidated Financial Statements for the years ended December 31, 2007, 2008 and 2009
During the preparation of the June 30, 2010 interim consolidated financial statements, we determined that the number of shares outstanding for the calculations of earnings per share following the business combination was incorrectly computed, resulting in an error in the basic and diluted earnings per share contained in our consolidated financial statements for the years ended December 31, 2007, 2008 and 2009. The restatement resulted in an increase in the basic earnings per share from RMB7.93 to RMB23.48 for the year ended December 31, 2007, from RMB9.91 to RMB29.35 for the year ended December 31, 2008 and from RMB12.68 to RMB29.91 for the year ended December 31, 2009 and an increase in the diluted earnings per share from RMB7.93 to RMB23.48 for the year ended December 31, 2007, from RMB9.91 to RMB27.71 for the year ended December 31, 2008 and from RMB11.98 to RMB21.56 for the year ended December 31, 2009. In addition, the amount of shares reported as outstanding were reduced by the amount of the escrow shares that had not been released. These changes do not impact any other income statement or balance sheet items.
The error related to our interpretation of "contingently issuable shares" under IAS33. In our original interpretation, we considered all contingently issuable shares as outstanding for all periods presented in the calculation of basic and diluted earnings per share. Under the correct interpretation, basic earnings per share should include only the number of contingently issuable shares of which all necessary conditions for their release were satisfied as of the end of the financial period, and diluted earnings per share should include only the number of contingently issuable shares that would be issuable from the date of the Acquisition and Redomestication if the conditions were satisfied as of the reporting period.
The restated calculation of basic earnings per share for the year ended December 31, 2009 does not include shares held in escrow that are subject to profit targets for the years ending December 31, 2010 and 2011. In accordance with IAS 33, escrow shares in relation to 2009 profit are effectively excluded in the calculation of basic earnings per share as the target was not met until the end of the day on December 31, 2009. The restated calculation of diluted earnings per share for the year ended December 31, 2009 includes 2009 escrow shares that are considered issued from the date of the Acquisition and Redomestication as if the conditions were satisfied for the period. There were no contingently issuable shares included in both of the restated basic and diluted earnings per share for the years ended December 31, 2007 and 2008 as the Acquisition and Redomestication was completed on October 21, 2009.
As a result of the above, we have re-filed our annual report on Form 20-F for the year ended December 31, 2009 to reflect our restated consolidated financial statements for the years ended December 31, 2007, 2008 and 2009. The filing has been filed on August 23, 2010 and the restated consolidated financial statements will be available on EDGAR, as part of an amendment to our annual report on Form 20-F for the year ended December 31, 2009, at http://www.sec.gov/edgar.shtml . Upon request, we will provide a hard copy of our restated audited consolidated financial statements free of charge.
Correction of Errors contained in the 2010 Equity Incentive Plan
The 2010 Equity Incentive Plan was adopted in our annual shareholders meeting on June 30, 2010. Pursuant to Section 17(a) of the Plan, our board of directors has the power to amend the Plan in a manner that would not materially increase the number of securities which may be issued under the Plan. On August 10, 2010, our board of directors has exercised such power to correct two typographical numerical errors contained in Section 3(c)(i) and (ii) as follows:
Before amendment:
"(c)(i) No Participant will be granted Option Rights or Appreciation Rights, in the aggregate, formore than two hundred thousand (300,000) shares of Common Stock during any calendar year;
(c)(ii) No Participant will be granted Qualified Performance Based Awards of Restricted Stock, Restricted Stock Units, Performance Shares or other awards under Section 10 of this Plan, in the aggregate, for more than two hundred thousand (300,000) shares of Common Stock during any calendar year;"
After amendment:
"(c)(i) No Participant will be granted Option Rights or Appreciation Rights, in the aggregate, for more than three hundred thousand (300,000) shares of Common Stock during any calendar year;
(c)(ii) No Participant will be granted Qualified Performance Based Awards of Restricted Stock, Restricted Stock Units, Performance Shares or other awards under Section 10 of this Plan, in the aggregate, for more than three hundred thousand (300,000) shares of Common Stock during any calendar year;"
The two changes described above will not affect the maximum number of shares of Common Stock that may be issued or transferred under the Plan in any calendar year.
Investor Conference Call / Webcast Details
The Company's senior management will host a conference call on Tuesday, August 24, 2010 at 5:00 am (US Pacific) / 8:00 am (US Eastern) / 8:00 pm (Beijing) to discuss the Company's 2010 second quarter financial results and recent business activity. The conference call may be accessed by dialing:
Toll Free Toll United States +1 866 839 8029 China 10800 6400 091 10800 2640 090 Hong Kong 800 901 587 United Kingdom 0808 234 8407 International +852 2598 7556 Participant Passcode "EDS"
A replay of the conference call may be accessed by phone at the following numbers until Tuesday, August 31, 2010:
Toll Free Toll United States +1 866 820 8960 China 800 876 8083 Hong Kong/International +852 3018 000 United Kingdom 0800 015 4960 Participant Passcode 9853910
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", "EDSWW" and "EDSUU".
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.
EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Three months ended June 30 2010 2010 2009 US$'000 RMB'000 RMB'000 (Unaudited) (Unaudited) (Unaudited) Revenue 94,480 640,717 425,873 Cost of sales (63,419) (430,074) (297,316) Gross profit 31,061 210,643 128,557 Other income and gains 664 4,504 164 Selling and distribution costs (12,535) (85,003) (33,865) Administrative expenses (1,884) (12,779) (12,369) Research and development expenses (1,727) (11,715) (7,568) OPEARTING PROFIT 15,579 105,650 74,919 Finance costs (88) (599) (8,744) Share of loss in jointly-controlled entity (1) (7) -- PROFIT BEFORE TAX 15,490 105,044 66,175 Tax (2,209) (14,978) (578) PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 13,281 90,066 65,597 EARNING PER SHARE Net profit per share Basic 0.54 3.66 11.43 Diluted 0.38 2.55 9.08 Weighted average number of shares outstanding Basic 24,615,188 24,615,188 5,741,466 Diluted 35,285,555 35,285,555 7,220,478 Six months ended June 30 2010 2009 RMB'000 RMB'000 (Unaudited) (Unaudited) Revenue 1,210,534 816,840 Cost of sales (820,098) (579,767) Gross profit 390,436 237,073 Other income and gains 4,958 278 Selling and distribution costs (153,392) (74,351) Administrative expenses (23,078) (20,186) Research and development expenses (23,290) (13,034) OPEARTING PROFIT 195,634 129,780 Finance costs (1,221) (17,277) Share of loss in jointly-controlled entity (7) -- PROFIT BEFORE TAX 194,406 112,503 Tax (26,752) (578) PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 167,654 111,925 EARNING PER SHARE Net profit per share Basic 7.60 19.49 Diluted 4.75 15.50 Weighted average number of shares outstanding Basic 22,047,584 5,741,466 Diluted 35,293,619 7,220,478 EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF FINANCIAL POSITION As of As of six months ended year ended June 30 December 31 2010 2010 2009 US$'000 RMB'000 RMB'000 (Unaudited) (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 39,609 268,610 272,578 Prepaid land lease payments 4,272 28,973 29,347 Deposit paid for acquisition of land use rights 1,770 12,000 -- Total non-current assets 45,651 309,583 301,925 CURRENT ASSETS Inventories 12,224 82,899 55,966 Trade receivables 84,114 570,418 812,747 Prepayments, deposits and other receivables 5,986 40,606 19,840 Due from a shareholder -- -- 103 Pledged bank deposits 1,475 10,000 15,000 Cash and bank balances 77,912 528,359 262,204 Total current assets 181,711 1,232,282 1,165,860 CURRENT LIABILITIES Trade and bills payables 16,795 113,895 195,538 Deposits received, other payables and accruals 7,168 48,618 62,842 Interest-bearing bank borrowings 2,654 18,000 58,000 Due to a director -- -- 1,687 Tax payable 2,146 14,552 1,286 Total current liabilities 28,763 195,065 319,353 NET CURRENT ASSETS 152,948 1,037,217 846,507 Net assets 198,599 1,346,800 1,148,432 STOCKHOLDER'S EQUITY Issued share capital 3 17 13 Reserves 198,596 1,346,783 1,148,419 Total equity 198,599 1,346,800 1,148,432 EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS Three months Six months ended ended June 30 June 30 2010 2010 2009 2010 US$'000 RMB'000 RMB'000 RMB'000 (Unaud- (Unaud- (Unaud- (Unaud- ited) ited) ited) ited) Net cash inflow/(outflow) from operating activities (893) (6,053) 36,378 292,540 Net cash outflow from investing activities (1,784) (12,098) (720) (15,398) Net cash inflow/(outflow) from financing activities (5,459) (37,023) 60,734 (10,378) Effect of exchange rate changes (71) (481) (1) (609) Net increase/(decrease) in cash and cash equivalents (8,207) (55,655) 96,391 266,155 Cash at beginning of the period 86,119 584,014 127,549 262,204 Cash at end of the period 77,912 528,359 223,940 528,359 Appendix The financial statements as of March 31, 2010 is attached in the Appendix for reference. EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Three months ended March 31 2010 2009 RMB'000 RMB'000 (Unaudited) (Unaudited) Revenue 569,817 390,967 Cost of sales (390,024) (282,451) Gross profit 179,793 108,516 Other income and gains 453 114 Selling and distribution costs (68,388) (40,486) Administrative expenses (10,299) (7,817) Research and development expenses (11,575) (5,466) OPERATING PROFIT 89,984 54,861 Finance costs (622) (8,533) Share of loss in jointly-controlled entity -- -- PROFIT BEFORE TAX 89,362 46,328 Tax (11,774) -- PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 77,588 46,328 EARNING PER SHARE Net profit per share Basic 3.99 8.07 Diluted 2.20 6.42 Weighted average number of shares outstanding Basic 19,451,451 5,741,466 Diluted 35,301,773 7,220,478 EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF FINANCIAL POSITION As of As of three months year ended ended March 31 December 31 2010 2009 RMB'000 RMB'000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 272,242 272,578 Prepaid land lease payments 29,160 29,347 Deposit paid for acquisition of land use rights -- -- Total non-current assets 301,402 301,925 CURRENT ASSETS Inventories 51,054 55,966 Trade receivables 636,563 812,747 Prepayments, deposits and other receivables 5,593 19,840 Due from a shareholder 102 103 Pledged bank deposits 25,000 15,000 Cash and bank balances 584,014 262,204 Total current assets 1,302,326 1,165,860 CURRENT LIABILITIES Trade and bills payables 224,376 195,538 Deposits received, other payables and accruals 55,342 62,842 Interest-bearing bank borrowings 58,000 58,000 Due to a director -- 1,687 Tax payable 11,760 1,286 Total current liabilities 349,478 319,353 NET CURRENT ASSETS 952,848 846,507 Net assets 1,254,250 1,148,432 STOCKHOLDER'S EQUITY Issued share capital 13 13 Reserves 1,254,237 1,148,419 Total equity 1,254,250 1,148,432 EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS As of As of three months three months ended March 31 ended March 31 2010 2009 RMB'000 RMB'000 (Unaudited) (Unaudited) Net cash inflow from operating activities 298,593 2,391 Net cash inflow/(outflow) from investing activities (3,300) 104 Net cash inflow from financing activities 26,645 4,998 Effect of exchange rate changes (128) (12) Net increase in cash and cash equivalents 321,810 7,481 Cash at beginning of the period 262,204 120,068 Cash at end of the period 584,014 127,549 For further information, please contact: Taylor Rafferty Pamela Leung Tel: +852 3196 3712 Email: Exceed@Taylor-Rafferty.com Delia Cannan Tel: +1-212-889-4350 Email: Exceed@Taylor-Rafferty.com
Exceed Company Ltd.
CONTACT: Investor Relations (Hong Kong), Pamela Leung of Taylor Rafferty,
+852-3196-3712, or Exceed@Taylor-Rafferty.com; Or Investor Relations (US),
Delia Cannan of Taylor Rafferty, +1-212-889-4350, or Exceed@Taylor-
Rafferty.com
Web site: http://www.ir.xdlong.cn/
