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XINIYA | 希尼亚希尼亚希尼亚希尼亚
NYSE listed
Ticker: XNY
China Xiniya Fashion Limited
1
April 2013
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Safe Harbor StatementSafe Harbor Statement
This presentation contains "forward-looking" statements within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "target," "going forward," "outlook" and similar statements. Such
statements are based upon management's current expectations and current market and
operating conditions, and relate to events that involve known or unknown risks,
uncertainties and other factors, all of which are difficult to predict and many of which are
2 XNY LISTED NYSE
uncertainties and other factors, all of which are difficult to predict and many of which are
beyond the Company's control, which may cause the Company's actual results,
performance or achievements to differ materially from those in the forward-looking
statements. Further information regarding these and other risks, uncertainties or factors is
included in the Company's filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required under law.
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Who We AreWho We Are
Market
Positioning
Top 5 business casual
menswear brand in China
based on retail sales
Target
Consumers
Product
Positioning
Stylish yet comfortable
apparel suitable for work,
travel and leisure
White-collar male, with
average to high disposable
income, aged 25-45
3 XNY LISTED NYSE
Presence
Business
Model
Asset-light distributor model
Lean corporate structure
Consumers income, aged 25-45
Nationwide across 21
provinces, 4 municipalities
and 5 autonomous regions
# of Outlets
1,600+ Xiniya-branded
retail outlets
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Share Buyback ProgramShare Buyback Program
$1.8 million Share Repurchase Program according to SEC Rule 10b5$1.8 million Share Repurchase Program according to SEC Rule 10b5--11
In July, Xiniya announced a $1.8 million share repurchase program, which has been
effective on September 1, 2011 through December 31, 2012. The share buyback has
been and will be executed automatically and evenly over the mentioned time frame in
accordance with SEC Rule 10b5-1. Management believes Company’s stock is
undervalued, and the program will create value for shareholders.
Management commits personal fund to supplement repurchase
4 XNY LISTED NYSE
Qiming Xu, Chairman and CEO, would purchase up to $200,000
Chee Jiong Ng, CFO, would purchase up to $50,000
As at December 31, 2012, the results are as follows:
The Company spent $1,678,958, or 1,070,827 ADSs at $1.57;
Chairman spent $186,540, or 118,990 ADSs at $1.57; and
CFO spent $46,631, or 29,759 ADSs at $1.57.
Note that XNY as a foreign private issuer is not required to file Form 4.
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Our HistoryOur History
Establishment of
retail network, first
retail outlet opened
in Jan 2006
Recognized as a
“Well-Known
Trademark of
China”
2010
2nd outlet image
upgrade began
Completed
retail network
restructuring
First China
Apparel Company
listed on NYSE
via IPO in
Nov 2010
2009
2008
5 XNY LISTED NYSE
Registration
of “Xiniya”
trademark
1993
Recognized as a
“Fujian Famous
Trademark” Signed Jacky
Cheung as our
brand
spokesperson
Surpassed 1,000
retail locations
1st outlet image
upgrade
Tripled revenue
and net income
in three years
Nov 2010
2007
2006
2005
XINIYA | 希尼亚希尼亚希尼亚希尼亚Product positioningProduct positioning
Price
6 XNY LISTED NYSE
Business
formal
Fashion,
Casual
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Product PositioningProduct Positioning
Classic
Actual consumer
group:Age 25~45
Actual age group
7 XNY LISTED NYSE
Fashion
The main
consumer
group:
Age 30~40
StyleElegant
and stylish
Urban
leisure
Urban
fashion
XINIYA | 希尼亚希尼亚希尼亚希尼亚
# of Outlets
CompetitionCompetition
Septwolves
3,249
3,525
3,268
3,976
China’s business casual menswear market is still fragmented,
without dominant brand in the market
8 XNY LISTED NYSE
Source: Listed companies data
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Xiniya
Joe One
China Lilang
1,181
2,430
2,561
1,404
2,710
2,885
1,607
3,140
3,268
2011
2010
2009
XINIYA | 希尼亚希尼亚希尼亚希尼亚
We target Tier 2 and below cities,
prefectures and counties in China:
Large unexplored market potential
More attractive growth dynamics
Little penetration by international
brands
Over 3,000 Tier 2 and below cities
Tier 2-4
Cities and
Regions
Current
Xiniya outlet Distribution (by # of cities)
71% (2011-74%,
29% (2011-26%,
2010-23%)
Impressive Growth PotentialImpressive Growth Potential –– Breadth and DepthBreadth and Depth
Unexplored
9 XNY LISTED NYSE
10+ outlets
in 4 cities
(2011-12,
2010–8)
and regions in China(1), Xiniya
currently has outlets in only 2012-
933 (2011-838, 2010–749) of them
We also see significant room for
growth in our existing geographies
where we could increase market
penetration substantially
Source: Company information as at December 31, 2012
1 outlet in 587
cities (2011-537,
2010–498)
71% (2011-74%,
2010–77%)
Xiniya outlet Penetration (by # of cities)
6 - 10 outlets in
33 cities (2011-
24, 2010–18)
Tier 2-4
Cities and
Regions
2–5 outlets in
309 cities
(2011-265,
2010–226)
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Heilongjiang
83
Jilin
35
Xinjiang
69
Shandong
80
Tianjin
4
Hebei
41
Inner Mongolia
44
Gansu
24
Ningxia
4
Shanxi
34
Beijing
1
Liaoning
80
Distributor NetworkDistributor Network
10 XNY LISTED NYSE
60 or more retail outlets
40 to 59 retail outlets
20 to 39 retail outlets
Less then 20 retail outlets
Outlets Breakdown by Channels
(as of December 2012)
Channel
# of
Partners
# of
Outlets
Company Operated 1 2
Distributors 29 118
Authorized Retailers 1,378 1,590
Total 1,710
Sichuan
73
Anhui
47
Qinghai
Yunnan
70
Henan
97
Shanghai
1
Jiangsu
66
Tibet
Guizhou
58
Guangdong
64
Hainan
2
804
Shaanxi
53
Chongqing
69
Jiangxi
53
Hubei
82
Hunan
148
Guangxi
94
Zhejiang
135
Fujian
97
Source: Company information as at December 31, 2012
XINIYA | 希尼亚希尼亚希尼亚希尼亚
1,590 outlets
managed by
authorized
retailers
118 outlets
directly
managed by
distributors
2 flagship
outlets operated
by Xiniya
End
Consumers
$100
Xiniya
$27
29
Exclusive
Distributors
$41 1,378
Authorized
Retailers
$50
Our Business ModelOur Business Model
Assuming a unit retail price of $100, the chart below illustrates the profitability model.
11 XNY LISTED NYSESource: Company information as at December 31, 2012
Highlights of the Distributor Model
Local Expertise
Limited
Resources
and Capital
Streamlined,
Simple
Distribution
Network
Rapidly
Expanding
Sales Network
and Service
Platform
$50
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Industry Experience
Deep Local and Regional
Sales Network
Financial Wherewithal
We Select Distributors Rigorously…
Weekly Reporting of Sales at the
Retail Level
Bi-Weekly Meeting to Discuss
KPIs and Market Feedback
…and Work Very Closely with Them
Dedicated Team of 90+ to Monitor,
Provide Support and Guidance
Managing our Distributor and Sales NetworkManaging our Distributor and Sales Network
12 XNY LISTED NYSE
Financial Wherewithal
Vision for Growth
Rapidly Sales
Network Expansion
Zero distributor
turnover / zero bad debts
The Results Are Apparent
Has been working with
23 out of 29 (2011-28,
2010-26) distributors
since 2006
KPIs and Market Feedback
Semi-Annual Strategy Sessions
Source: Company information as at December 31, 2012
XINIYA | 希尼亚希尼亚希尼亚希尼亚
BiBi--annual Sales Fairannual Sales Fair
13 XNY LISTED NYSE
We generate
substantially all of our
revenues through our
two sales fairs, attended
and orders are placed by
distributors and
authorized retailers.
Sales fair typically held in April
and September, sales orders are:
Distributors and authorized retailers placed their orders from about 1,000
designs each sales fair.
Production based on
confirmed and non-
cancellable orders.
Apr 2011
Sep 2011
Apr 2012
Sep 2012
29%
26%
11%
2%
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Encourage
outlet
Promotional
Activities During
Holidays
Monthly Retail Sales
Stats monitoring retail
outlet performance
End-of-Season
Sales
Discounting
Requires
Inventory Management Initiatives at Retail NetworkInventory Management Initiatives at Retail Network
14 XNY LISTED NYSE
outlet
Profitability
Sales
Initiatives
Training initiatives
to strengthen retail
management
Marketing
Campaigns to
Promote Brand
Requires
Approval
Future ERP Initiatives to Connect Retail Outlets
XINIYA | 希尼亚希尼亚希尼亚希尼亚Xiniya’sXiniya’s Brand Spokesperson Is A PopularBrand Spokesperson Is A Popular
Entertainment Icon in ChinaEntertainment Icon in China
15 XNY LISTED NYSE
Renewed sponsorship contract with Jacky
Cheung – a leading pop star in China –
through 2013
XINIYA | 希尼亚希尼亚希尼亚希尼亚CCTVCCTV 2,2, 5 and 125 and 12 –– DailyDaily Commercials onCommercials on
Nationwide Television ChannelsNationwide Television Channels
Commercials up to 15 seconds featured Jackey Cheung dressed in Xiniya’s menswear
products
CCTV 12 broadcast to an audience of nearly 900 million viewers
Xiniya’s TV commercial is shown daily at various hours during prime time of CCTV 12
Xiniya sponsors “Moral Observation”, a daily prime time program and the most popular
program on CCTV 12 that attracts about 54 million viewers weekly. It is similar to “60
minutes” in the United States.
16 XNY LISTED NYSE
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Flagship storesFlagship stores
Four flagship stores in 2011:
– Zun Yi City, Gui Zhou Province
(250 sq meter/2,690 sq ft)
– Harbin City, Heilongjiang Province
(490 sq meter/5,270 sq ft)
– Chengdu City, Sichuan Province
(600 sq meter/6,450 sq ft)
– Quanzhou City, Fujian Province
(450 sq meter/4,840 sq ft)
Two flagship stores in 2012:
– Urumqi City, Xinjiang Province
17 XNY LISTED NYSE
– Urumqi City, Xinjiang Province
(320 sq meter/3,444 sq ft)
– Shenyang City, Liaoning Province
(300 sq meter/3,229 sq ft)
Expansion focus is in Tier 2 cities and
below, which have had higher GDP
growth rates vs. Tier 1 cities.
Help to attract more authorized
retailers to join and increase brand
equity among consumers
Xiniya has a total of 7 flagships
outlets
XINIYA | 希尼亚希尼亚希尼亚希尼亚
All of our outlets are Xiniya-branded and
sell Xiniya-branded products exclusively
Gross floor area of each outlet
typically ranging from 500 sq ft
to 3,500 sq ft
outlet looks and layout designed by us
Our Retail OutletsOur Retail Outlets
18 XNY LISTED NYSE
outlet looks and layout designed by us
- outlet image upgrade every two years
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Management TeamManagement Team –– Experience and StableExperience and Stable
Founder
– Introduced current business model in 2005
– Has 23+ years of experience in China’s men’s
apparel industry
– Director at Quanzhou Textile and Garment Chamber
of Commerce and Director of Shishi City Hubin
District Chamber of Commerce
– School of Continuing Education, Tsinghua University
(Business Administration)
Co-Founder Has 15+ years experience in financial reporting and
auditing, with more than 13 years at PwC in various
Mr. Qi Ming XU
Chairman
& CEO
Mr. Kang Kai ZENG Mr. Chee Jiong NG
19 XNY LISTED NYSE
Has 14+ years of experience in China’s men’s
apparel industry
– Began working with the Xiniya brand in 1995
– School of Continuing Education, Tsinghua
University (Business Administration)
auditing, with more than 13 years at PwC in various
roles including Senior Manager
– Financial Controller at Air-Sys Refrigeration
Engineering Technology (Beijing)
– University of New South Wales (Master of
Commerce / Corporate Finance)
Has 15+ years of experience in marketing roles within
the apparel industry
– Deputy General Manager at Xiniya in 2006
– Previously marketing manager at Fujian Tries
– Zhejiang Gongshang University (Marketing)
More than 10 years of experience as a fashion
designer
Graduated from a professional fashion design
school in 2002
COO CFO
Mr. Tian De LIAO Mr. Ming Jiang LIU
Chief Designer
Chief Marketing
Officer
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Revenue and Accounts Receivable SeasonalityRevenue and Accounts Receivable Seasonality
-
50.0
100.0
150.0
200.0
250.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012RMB mn Revenue
20 XNY LISTED NYSE
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-
100.0
200.0
300.0
400.0
500.0
600.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012
RMB mn Account Receivables
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Robust Revenue GrowthRobust Revenue Growth
0
200
400
600
800
1000
1200
1400
889.3
1,180.0
1,383.7
Revenue in RMB million
0
50
100
150
200
250
160.2
183.0 214.1
ASPASP in RMB
Pricing & Volume TrendsPricing & Volume Trends
21 XNY LISTED NYSE
0
2010 2011 2012
5,000
5,500
6,000
6,500
2010 2011 2012
5,615
6,449 6,464
Volume in Thousand Units
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012
1,404
1,607 1,710
Retail outlets
203
103
0
2010 2011 2012
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Quarterly ResultsQuarterly Results
Revenue Gross Profit Margin
122.4 135.6
307.6 333.5
159.3 176.9
361.1
482.8
212.3 220.9
417.9
532.5
0
100
200
300
400
500
600
Q1 Q2 Q3 Q4
2010 2011 2012
RMB
mn
32.5%
31.5%
35.1%
35.9%
34.5%
33.6%
32.4%
34.4%
35.1% 34.3%
34.1%
33.0% 34.5%
32.3%
33.3%
29.0%
30.0%
31.0%
32.0%
33.0%
34.0%
35.0%
36.0%
37.0%
Q1 Q2 Q3 Q4 FY
2010 2011 2012
%
22 XNY LISTED NYSE
Profit Before Tax Net Profit After Tax
2010 2011 2012 2010 2011 2012
36.6 38.8
102.4
110.8
42.9 46.5
94.8
150.0
57.9
28.3
74.8 74.8
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Q1 Q2 Q3 Q4
2010 2011 2012
RMB mn
31.6 34.2
89.5
96.8
32.1 35.4
71.8
112.5
43.2
20.2
56.4 55.6
-
20.0
40.0
60.0
80.0
100.0
120.0
Q1 Q2 Q3 Q4
RMB mn
2010 - tax rate @ 12.6% 2011 - tax rate @ 25%
2012 - tax rate @ 25%
XINIYA | 希尼亚希尼亚希尼亚希尼亚
Superior operating cash flowsSuperior operating cash flows
200
250
191
208
Operating cash flow
RMB mn
23 XNY LISTED NYSE
0
50
100
150
2010 2011 2012
126

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Xiniya's NYSE Listed Business Casual Menswear Brand Profile

  • 1. XINIYA | 希尼亚希尼亚希尼亚希尼亚 NYSE listed Ticker: XNY China Xiniya Fashion Limited 1 April 2013
  • 2. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Safe Harbor StatementSafe Harbor Statement This presentation contains "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are 2 XNY LISTED NYSE uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
  • 3. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Who We AreWho We Are Market Positioning Top 5 business casual menswear brand in China based on retail sales Target Consumers Product Positioning Stylish yet comfortable apparel suitable for work, travel and leisure White-collar male, with average to high disposable income, aged 25-45 3 XNY LISTED NYSE Presence Business Model Asset-light distributor model Lean corporate structure Consumers income, aged 25-45 Nationwide across 21 provinces, 4 municipalities and 5 autonomous regions # of Outlets 1,600+ Xiniya-branded retail outlets
  • 4. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Share Buyback ProgramShare Buyback Program $1.8 million Share Repurchase Program according to SEC Rule 10b5$1.8 million Share Repurchase Program according to SEC Rule 10b5--11 In July, Xiniya announced a $1.8 million share repurchase program, which has been effective on September 1, 2011 through December 31, 2012. The share buyback has been and will be executed automatically and evenly over the mentioned time frame in accordance with SEC Rule 10b5-1. Management believes Company’s stock is undervalued, and the program will create value for shareholders. Management commits personal fund to supplement repurchase 4 XNY LISTED NYSE Qiming Xu, Chairman and CEO, would purchase up to $200,000 Chee Jiong Ng, CFO, would purchase up to $50,000 As at December 31, 2012, the results are as follows: The Company spent $1,678,958, or 1,070,827 ADSs at $1.57; Chairman spent $186,540, or 118,990 ADSs at $1.57; and CFO spent $46,631, or 29,759 ADSs at $1.57. Note that XNY as a foreign private issuer is not required to file Form 4.
  • 5. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Our HistoryOur History Establishment of retail network, first retail outlet opened in Jan 2006 Recognized as a “Well-Known Trademark of China” 2010 2nd outlet image upgrade began Completed retail network restructuring First China Apparel Company listed on NYSE via IPO in Nov 2010 2009 2008 5 XNY LISTED NYSE Registration of “Xiniya” trademark 1993 Recognized as a “Fujian Famous Trademark” Signed Jacky Cheung as our brand spokesperson Surpassed 1,000 retail locations 1st outlet image upgrade Tripled revenue and net income in three years Nov 2010 2007 2006 2005
  • 6. XINIYA | 希尼亚希尼亚希尼亚希尼亚Product positioningProduct positioning Price 6 XNY LISTED NYSE Business formal Fashion, Casual
  • 7. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Product PositioningProduct Positioning Classic Actual consumer group:Age 25~45 Actual age group 7 XNY LISTED NYSE Fashion The main consumer group: Age 30~40 StyleElegant and stylish Urban leisure Urban fashion
  • 8. XINIYA | 希尼亚希尼亚希尼亚希尼亚 # of Outlets CompetitionCompetition Septwolves 3,249 3,525 3,268 3,976 China’s business casual menswear market is still fragmented, without dominant brand in the market 8 XNY LISTED NYSE Source: Listed companies data - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Xiniya Joe One China Lilang 1,181 2,430 2,561 1,404 2,710 2,885 1,607 3,140 3,268 2011 2010 2009
  • 9. XINIYA | 希尼亚希尼亚希尼亚希尼亚 We target Tier 2 and below cities, prefectures and counties in China: Large unexplored market potential More attractive growth dynamics Little penetration by international brands Over 3,000 Tier 2 and below cities Tier 2-4 Cities and Regions Current Xiniya outlet Distribution (by # of cities) 71% (2011-74%, 29% (2011-26%, 2010-23%) Impressive Growth PotentialImpressive Growth Potential –– Breadth and DepthBreadth and Depth Unexplored 9 XNY LISTED NYSE 10+ outlets in 4 cities (2011-12, 2010–8) and regions in China(1), Xiniya currently has outlets in only 2012- 933 (2011-838, 2010–749) of them We also see significant room for growth in our existing geographies where we could increase market penetration substantially Source: Company information as at December 31, 2012 1 outlet in 587 cities (2011-537, 2010–498) 71% (2011-74%, 2010–77%) Xiniya outlet Penetration (by # of cities) 6 - 10 outlets in 33 cities (2011- 24, 2010–18) Tier 2-4 Cities and Regions 2–5 outlets in 309 cities (2011-265, 2010–226)
  • 10. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Heilongjiang 83 Jilin 35 Xinjiang 69 Shandong 80 Tianjin 4 Hebei 41 Inner Mongolia 44 Gansu 24 Ningxia 4 Shanxi 34 Beijing 1 Liaoning 80 Distributor NetworkDistributor Network 10 XNY LISTED NYSE 60 or more retail outlets 40 to 59 retail outlets 20 to 39 retail outlets Less then 20 retail outlets Outlets Breakdown by Channels (as of December 2012) Channel # of Partners # of Outlets Company Operated 1 2 Distributors 29 118 Authorized Retailers 1,378 1,590 Total 1,710 Sichuan 73 Anhui 47 Qinghai Yunnan 70 Henan 97 Shanghai 1 Jiangsu 66 Tibet Guizhou 58 Guangdong 64 Hainan 2 804 Shaanxi 53 Chongqing 69 Jiangxi 53 Hubei 82 Hunan 148 Guangxi 94 Zhejiang 135 Fujian 97 Source: Company information as at December 31, 2012
  • 11. XINIYA | 希尼亚希尼亚希尼亚希尼亚 1,590 outlets managed by authorized retailers 118 outlets directly managed by distributors 2 flagship outlets operated by Xiniya End Consumers $100 Xiniya $27 29 Exclusive Distributors $41 1,378 Authorized Retailers $50 Our Business ModelOur Business Model Assuming a unit retail price of $100, the chart below illustrates the profitability model. 11 XNY LISTED NYSESource: Company information as at December 31, 2012 Highlights of the Distributor Model Local Expertise Limited Resources and Capital Streamlined, Simple Distribution Network Rapidly Expanding Sales Network and Service Platform $50
  • 12. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Industry Experience Deep Local and Regional Sales Network Financial Wherewithal We Select Distributors Rigorously… Weekly Reporting of Sales at the Retail Level Bi-Weekly Meeting to Discuss KPIs and Market Feedback …and Work Very Closely with Them Dedicated Team of 90+ to Monitor, Provide Support and Guidance Managing our Distributor and Sales NetworkManaging our Distributor and Sales Network 12 XNY LISTED NYSE Financial Wherewithal Vision for Growth Rapidly Sales Network Expansion Zero distributor turnover / zero bad debts The Results Are Apparent Has been working with 23 out of 29 (2011-28, 2010-26) distributors since 2006 KPIs and Market Feedback Semi-Annual Strategy Sessions Source: Company information as at December 31, 2012
  • 13. XINIYA | 希尼亚希尼亚希尼亚希尼亚 BiBi--annual Sales Fairannual Sales Fair 13 XNY LISTED NYSE We generate substantially all of our revenues through our two sales fairs, attended and orders are placed by distributors and authorized retailers. Sales fair typically held in April and September, sales orders are: Distributors and authorized retailers placed their orders from about 1,000 designs each sales fair. Production based on confirmed and non- cancellable orders. Apr 2011 Sep 2011 Apr 2012 Sep 2012 29% 26% 11% 2%
  • 14. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Encourage outlet Promotional Activities During Holidays Monthly Retail Sales Stats monitoring retail outlet performance End-of-Season Sales Discounting Requires Inventory Management Initiatives at Retail NetworkInventory Management Initiatives at Retail Network 14 XNY LISTED NYSE outlet Profitability Sales Initiatives Training initiatives to strengthen retail management Marketing Campaigns to Promote Brand Requires Approval Future ERP Initiatives to Connect Retail Outlets
  • 15. XINIYA | 希尼亚希尼亚希尼亚希尼亚Xiniya’sXiniya’s Brand Spokesperson Is A PopularBrand Spokesperson Is A Popular Entertainment Icon in ChinaEntertainment Icon in China 15 XNY LISTED NYSE Renewed sponsorship contract with Jacky Cheung – a leading pop star in China – through 2013
  • 16. XINIYA | 希尼亚希尼亚希尼亚希尼亚CCTVCCTV 2,2, 5 and 125 and 12 –– DailyDaily Commercials onCommercials on Nationwide Television ChannelsNationwide Television Channels Commercials up to 15 seconds featured Jackey Cheung dressed in Xiniya’s menswear products CCTV 12 broadcast to an audience of nearly 900 million viewers Xiniya’s TV commercial is shown daily at various hours during prime time of CCTV 12 Xiniya sponsors “Moral Observation”, a daily prime time program and the most popular program on CCTV 12 that attracts about 54 million viewers weekly. It is similar to “60 minutes” in the United States. 16 XNY LISTED NYSE
  • 17. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Flagship storesFlagship stores Four flagship stores in 2011: – Zun Yi City, Gui Zhou Province (250 sq meter/2,690 sq ft) – Harbin City, Heilongjiang Province (490 sq meter/5,270 sq ft) – Chengdu City, Sichuan Province (600 sq meter/6,450 sq ft) – Quanzhou City, Fujian Province (450 sq meter/4,840 sq ft) Two flagship stores in 2012: – Urumqi City, Xinjiang Province 17 XNY LISTED NYSE – Urumqi City, Xinjiang Province (320 sq meter/3,444 sq ft) – Shenyang City, Liaoning Province (300 sq meter/3,229 sq ft) Expansion focus is in Tier 2 cities and below, which have had higher GDP growth rates vs. Tier 1 cities. Help to attract more authorized retailers to join and increase brand equity among consumers Xiniya has a total of 7 flagships outlets
  • 18. XINIYA | 希尼亚希尼亚希尼亚希尼亚 All of our outlets are Xiniya-branded and sell Xiniya-branded products exclusively Gross floor area of each outlet typically ranging from 500 sq ft to 3,500 sq ft outlet looks and layout designed by us Our Retail OutletsOur Retail Outlets 18 XNY LISTED NYSE outlet looks and layout designed by us - outlet image upgrade every two years
  • 19. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Management TeamManagement Team –– Experience and StableExperience and Stable Founder – Introduced current business model in 2005 – Has 23+ years of experience in China’s men’s apparel industry – Director at Quanzhou Textile and Garment Chamber of Commerce and Director of Shishi City Hubin District Chamber of Commerce – School of Continuing Education, Tsinghua University (Business Administration) Co-Founder Has 15+ years experience in financial reporting and auditing, with more than 13 years at PwC in various Mr. Qi Ming XU Chairman & CEO Mr. Kang Kai ZENG Mr. Chee Jiong NG 19 XNY LISTED NYSE Has 14+ years of experience in China’s men’s apparel industry – Began working with the Xiniya brand in 1995 – School of Continuing Education, Tsinghua University (Business Administration) auditing, with more than 13 years at PwC in various roles including Senior Manager – Financial Controller at Air-Sys Refrigeration Engineering Technology (Beijing) – University of New South Wales (Master of Commerce / Corporate Finance) Has 15+ years of experience in marketing roles within the apparel industry – Deputy General Manager at Xiniya in 2006 – Previously marketing manager at Fujian Tries – Zhejiang Gongshang University (Marketing) More than 10 years of experience as a fashion designer Graduated from a professional fashion design school in 2002 COO CFO Mr. Tian De LIAO Mr. Ming Jiang LIU Chief Designer Chief Marketing Officer
  • 20. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Revenue and Accounts Receivable SeasonalityRevenue and Accounts Receivable Seasonality - 50.0 100.0 150.0 200.0 250.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012RMB mn Revenue 20 XNY LISTED NYSE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec - 100.0 200.0 300.0 400.0 500.0 600.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 RMB mn Account Receivables
  • 21. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Robust Revenue GrowthRobust Revenue Growth 0 200 400 600 800 1000 1200 1400 889.3 1,180.0 1,383.7 Revenue in RMB million 0 50 100 150 200 250 160.2 183.0 214.1 ASPASP in RMB Pricing & Volume TrendsPricing & Volume Trends 21 XNY LISTED NYSE 0 2010 2011 2012 5,000 5,500 6,000 6,500 2010 2011 2012 5,615 6,449 6,464 Volume in Thousand Units - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2010 2011 2012 1,404 1,607 1,710 Retail outlets 203 103 0 2010 2011 2012
  • 22. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Quarterly ResultsQuarterly Results Revenue Gross Profit Margin 122.4 135.6 307.6 333.5 159.3 176.9 361.1 482.8 212.3 220.9 417.9 532.5 0 100 200 300 400 500 600 Q1 Q2 Q3 Q4 2010 2011 2012 RMB mn 32.5% 31.5% 35.1% 35.9% 34.5% 33.6% 32.4% 34.4% 35.1% 34.3% 34.1% 33.0% 34.5% 32.3% 33.3% 29.0% 30.0% 31.0% 32.0% 33.0% 34.0% 35.0% 36.0% 37.0% Q1 Q2 Q3 Q4 FY 2010 2011 2012 % 22 XNY LISTED NYSE Profit Before Tax Net Profit After Tax 2010 2011 2012 2010 2011 2012 36.6 38.8 102.4 110.8 42.9 46.5 94.8 150.0 57.9 28.3 74.8 74.8 - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Q1 Q2 Q3 Q4 2010 2011 2012 RMB mn 31.6 34.2 89.5 96.8 32.1 35.4 71.8 112.5 43.2 20.2 56.4 55.6 - 20.0 40.0 60.0 80.0 100.0 120.0 Q1 Q2 Q3 Q4 RMB mn 2010 - tax rate @ 12.6% 2011 - tax rate @ 25% 2012 - tax rate @ 25%
  • 23. XINIYA | 希尼亚希尼亚希尼亚希尼亚 Superior operating cash flowsSuperior operating cash flows 200 250 191 208 Operating cash flow RMB mn 23 XNY LISTED NYSE 0 50 100 150 2010 2011 2012 126