company presentation

XINIYA | 希尼亚希尼亚希尼亚希尼亚

NYSE listed

Ticker: XNY

China Xiniya Fashion Limited

1

April 2013


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

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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.


Who We AreWho We Are

Market Positioning

Top 5 business casual menswear brand in China based on retail sales

TargetConsumers

Product Positioning

Stylish yet comfortable

apparel suitable for work,

travel and leisure

White-collar male, with

average to high disposable

income, aged 25-45

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Presence

Business Model

Asset-light distributor modelLean corporate structure

Consumersincome, aged 25-45

Nationwide across 21 provinces, 4 municipalities and 5 autonomous regions

# of Outlets1,600+ Xiniya-branded retail outlets


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

�

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� 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.


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 ChinaApparel Company listed on NYSEvia IPO in Nov 2010

20092008

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 20102007

2006

2005

XINIYA | 希尼亚希尼亚希尼亚希尼亚Product positioningProduct positioning

Price

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Business formal

Fashion, Casual


Product Positioning Product Positioning

Classic

Actual consumer group：Age 25~45

Actual age group

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Fashion

The main consumer group：

Age 30~40

StyleElegant and stylish Urban leisureUrban fashion


# of Outlets

CompetitionCompetition

Septwolves3,249

3,525

3,268

3,976

� China’s business casual menswear market is still fragmented,

without dominant brand in the market

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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


� 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 Potential Impressive Growth Potential –– Breadth and DepthBreadth and Depth

Unexplored

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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)


Heilongjiang

83

Jilin

35

Xinjiang

69

Shandong

80

Tianjin

4

Hebei

41

Inner Mongolia

44Gansu

24

Ningxia

4

Shanxi

34

Beijing1

Liaoning

80

Distributor NetworkDistributor Network

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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

69Jiangxi

53

Hubei

82

Hunan

148

Guangxi

94

Zhejiang

135

Fujian

97



1,590 outlets managed by authorized retailers

118 outlets directly

managed by distributors

2 flagship outlets operated

by Xiniya

EndConsumers

$100

Xiniya

$2729

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 ExpertiseLimited

Resources and Capital

Streamlined, Simple

DistributionNetwork

Rapidly

Expanding

Sales Network

and Service

Platform

$50


Industry Experience

Deep Local and Regional Sales Network

Financial Wherewithal

We Select Distributors Rigorously…

Weekly Reporting of Sales at theRetail Level

Bi-Weekly Meeting to DiscussKPIs 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

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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



BiBi--annual Sales Fairannual Sales Fair

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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%


Encourageoutlet

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

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outletProfitability

Sales Initiatives

Training initiatives to strengthen retail

management

Marketing Campaigns to Promote Brand

Requires Approval

Future ERP Initiatives to Connect Retail Outlets


Xiniya’sXiniya’s Brand Spokesperson Is A Popular Brand Spokesperson Is A Popular Entertainment Icon in ChinaEntertainment Icon in China

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� Renewed sponsorship contract with Jacky Cheung – a leading pop star in China –through 2013


CCTV CCTV 2,2, 5 and 12 5 and 12 –– DailyDaily Commercials on Commercials 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.

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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


– Chengdu City, Sichuan Province


– Quanzhou City, Fujian Province


� Two flagship stores in 2012:

– Urumqi City, Xinjiang Province

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– Urumqi City, Xinjiang Province


– Shenyang City, Liaoning Province


� 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


All of our outlets are Xiniya-branded andsell 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 Outlets Our Retail Outlets

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outlet looks and layout designed by us

- outlet image upgrade every two years


Management Team Management 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

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� 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 DesignerChief Marketing

Officer


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

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-

100.0

200.0

300.0

400.0

500.0

600.0


2010 2011 2012RMB mn

Account Receivables


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

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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


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

%

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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%


Superior operating cash flowsSuperior operating cash flows

200

250

191

208

Operating cash flowRMB mn

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0

50

100

150

2010 2011 2012

126