Exceed Company Ltd. Six Months Ended June 2014 Financial Results Share with LinkedIn

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FUJIAN, China, Dec. 19, 2014 -- Exceed Company Ltd. (NASDAQ: EDS) ("Exceed" or "the Company"), the owner and operator of the "Xidelong" brand - one of the leading domestic sportswear brands in China, today released its unaudited financial results for the six months ended June 30, 2014.

Financial Highlights – Six months ended June 30, 2014 (1)

Revenue was RMB845.2 million (US$136.2 million), representing a 29.7% period-over-period increase.

Gross profit was RMB230.9 million (US$37.2 million), representing a 32.2% period-over-period increase. Gross margin was 27.3%, representing a 0.5 percentage point increase as compared to 26.8% for the six months ended June 30, 2013.

Operating profit was RMB96.9 million (US$15.6 million), representing a 157.7% period-over-period increase.

Net profit was RMB70.4 million (US$11.4 million), representing a 176.1% period-over-period increase.

(1) 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 USD1.00 = RMB6.2036 , the exchange rate refers to the exchange rate as set forth in the H.10 statistical release of the Federal Reserve Board, on June 30, 2014. 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, 2014.

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 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 symbol "EDS".

Contacts: Investor Relations / Exceed Company Ltd. / Vivien Tai / +852 3975-8116 / ir@xdlong.cn


FINANCIAL TABLES TO FOLLOW -

EXCEED COMPANY LTD. AND SUBSIDIARIES UNAUDITED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
		Six months ended June 30
		(in thousands except for share and per share data)
		2014		2014		2013
		US$'000		RMB'000		RMB'000
Revenue		136,244		845,202		651,947
Cost of sales		(99,023)		(614,301)		(477,233)
Gross profit		37,221		230,901		174,714
Other income and gains		784		4,861		6,587
Selling and distribution costs		(15,037)		(93,280)		(98,370)
Administrative expenses		(4,155)		(25,769)		(25,065)
Research and development expenses		(3,191)		(19,798)		(20,219)
OPERATING PROFIT		15,622		96,915		37,647
Finance costs		(56)		(349)		(882)
PROFIT BEFORE TAX		15,566		96,566		36,765
Tax		(4,212)		(26,131)		(11,266)
PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		11,354		70,435		25,499
EARNING PER SHARE
Net profit per share
Basic		0.34		2.13		0.77
Diluted		0.34		2.13		0.77
Weighted average number of shares outstanding
Basic		33,135,583		33,135,583		33,045,506
Diluted		33,137,167		33,137,167		33,045,909

EXCEED COMPANY LTD. AND SUBSIDIARIES CONDENSED STATEMENTS OF FINANCIAL POSITION
						As of
		As of June 30				December 31
		2014		2014		2013
		US$'000		RMB'000		RMB'000
		(Unaudited)		(Unaudited)
NON-CURRENT ASSETS
Property, plant and equipment		91,485		567,536		567,627
Prepaid land lease payments		36,007		223,376		26,355
Deposit paid for acquisition of land use rights		4,228		26,230		149,986
Total non-current assets		131,720		817,142		743,968
CURRENT ASSETS
Inventories		2,566		15,917		19,001
Trade receivables		144,784		898,179		1,143,872
Prepayments, deposits and other receivables		3,639		22,579		19,719
Cash and cash equivalents		124,117		769,973		486,647
Total current assets		275,106		1,706,648		1,669,239
CURRENT LIABILITIES
Trade and bills payables		11,117		68,963		59,160
Deposits received, other payables and accruals		11,472		71,165		54,849
Interest-bearing bank borrowings		1,612		10,000		10,000
Loan from a shareholder		8,315		51,582		-
Tax payable		2,820		17,496		9,653
Total current liabilities		35,336		219,206		133,662
NET CURRENT ASSETS		239,770		1,487,442		1,535,577
TOTAL ASSETS LESS CURRENT LIABILITIES		371,490		2,304,584		2,279,545
NON-CURRENT LIABILITIES
Loan from a shareholder		672		4,172		48,747
Total non-current liabilities		672		4,172		48,747
Net assets		370,818		2,300,412		2,230,798
STOCKHOLDER'S EQUITY
Issued share capital		4		23		23
Treasury shares		(2,563)		(15,898)		(15,898)
Retained profits		290,047		1,799,335		1,736,428
Reserves		83,330		516,952		510,245
Total equity		370,818		2,300,412		2,230,798

EXCEED COMPANY LTD. AND SUBSIDIARIES UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
		Six months ended June 30
		(in thousands except for share and per share data)
		2014		2014		2013
		US$'000		RMB'000		RMB'000
Net cash inflow from operating activities		58,223		361,204		308,211
Net cash outflow from investing activities		(13,233)		(82,096)		(107,566)
Net cash inflow from financing activities		673		4,172		37,461
Effect of exchange rate changes		8		46		(368)
Net increase in cash and cash equivalents		45,671		283,326		237,738
Cash and cash equivalents at beginning of the period		78,446		486,647		637,184
Cash and cash equivalents at end of the period		124,117		769,973		874,922

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