FUJIAN, CHINA / ACCESSWIRE / November 21, 2016 / China Xiniya Fashion Limited (NYSE: XNY) ("Xiniya" or the "Company") today reported financial results for the first half of 2016. The unaudited consolidated financial statements and other financial information included in this press release have been prepared in conformity with International Financial Reporting Standards ("IFRS").

The Company publishes its consolidated financial statements in Renminbi ("RMB").

First Half 2016 Highlights:

- In reassessing its first half 2015 presentation of the sales of repurchased inventory and the components within this line item, the Company made a determination that the components of the transaction should be revised to reclassify and reallocate this amount between the revenue and cost of sales line items. The components of the sales of repurchased inventory transactions consisted of sales of repurchased inventory of RMB45,849 as an increase in revenue and cost of sales of repurchased inventory of RMB45,849 as an increase in cost of sales.

The Company evaluated the materiality of this revision, quantitatively and qualitatively, and concluded it did not constitute a material change to the Company's previously issued financial statements first half of 2015. However, the Company elected to revise the first half of 2015 to avoid inconsistencies with its financial statements for the period ended June 30, 2016. Accordingly, the Company revised previously reported results for the first half of 2015.

- Revenue during the first half of 2016 was RMB15.1 million, as compared to revenue of RMB214.3 million in the first half of 2015.

- Loss before taxation during the first half of 2016 was RMB129.2 million, as compared to profit before taxation of RMB13.3 million in the first half of 2015.

- Net loss in the first half of 2016 was RMB129.2 million as compared to net profit of RMB9.6 million in the first half of 2015.

- Loss per ADS was $1.37 in the first half of 2016 as compared to earnings per ADS of $0.11 in the first half of 2015.

First Half 2016 Results:

Revenue for the first half of 2016 was RMB15.1 million, a decrease from RMB214.3 million during the first half of 2015. The decrease in revenue was primarily attributed to the inventory buyback in the first half of 2016. During the first half of 2016, the Company repurchased inventory of RMB294.2 million from distributors, of which RMB124.5 million was a reduction in revenue and RMB169.7 million was a reduction in provision for liability. The decrease was also attributed to a decrease in revenue of RMB74.7 million.

Excluding the inventory buyback in the first half of 2016, the Company delivered approximately 1,320,000 units to it's customers during the first half of 2016, compared with 1,806,000 units during the first half of 2015.

The Company's network of authorized retailers had a net addition of one retail outlet in the first half of 2016, consisting of 53 new retail outlets opened and 52 retail outlets closed. The total number of authorized retail outlets was 505 as of June 30, 2016. The table below sets forth the number of retail outlets by outlet type:

Outlet Type:As of December 31, 2015As of June
30, 2016
Company operates flagship store 1 1
Distributors operate stores 64 56
Distributors operate flagship stores 2 2
Distributor operates retail website 1 1
Authorized retailers operating outlets 435 445
Authorized retailer operating flagship store 1 -
Total 504 505

The cost of sales decreased from RMB162.1 million in the first half of 2015 to RMB100.7 million in the first half of 2016. The decrease in cost of sales was primarily attributed to the inventory buyback in the first half of 2016. During the first half of 2016, the net realizable value of repurchased inventory was RMB84.9 million, of which RMB40.7 million was a reduction in cost of sales and RMB44.2 million was a reduction in provision for liability.

Gross loss was RMB85.6 million in the first half of 2016 as compared to gross profit of RMB52.3 million in the first half of 2015. The gross loss was mainly due to inventory buyback in the first half of 2016.

Interest and other income was RMB2.7 million in the first half of 2016 as compared to RMB10.5 million in the first half of 2015. The decrease was mainly due to lower balances of time deposits in the first half of 2016 as compared to time deposits of RMB370 million placed with banks during the same period last year.

Selling and distribution expenses were RMB36.0 million in the first half of 2016, a decrease from RMB37.0 million during the first half of 2015. The decrease was primarily attributed to the reduction of advertising and shop rack expenses. The decrease was partially offset by the increase in amortization expenses of retail network acquisition costs of RMB4.0 million.

Administrative expenses were RMB10.3 million in the first half of 2016, a decrease from RMB12.4 million during the first half of 2015. The decrease was primarily due to reduction of headcount, office and other miscellaneous expenses during the first half of 2016.

Loss before taxation was RMB129.2 million in the first half of 2016, as compared with profit before taxation of RMB13.3 million during the first half of 2015.

Loss after taxation for the first half of 2016 was RMB129.2 million, as compared with net profit of RMB9.6 million during the first half of 2015. Loss per ADS was $1.37 in the first half of 2016, compared to earnings of $0.11 per ADS in the first half of 2015.

Financial Position:

As of June 30, 2016, the Company had cash and cash equivalents of RMB63.1 million.

As of June 30, 2016, the Company had inventory of RMB106.7 million which mainly resulted from the inventory buyback in the first half of 2016.

Conference Call:

Xiniya's management will host and earnings conference call on Monday, November 21, 2016 at 7 a.m. Eastern Standard Time (8 p.m. Beijing time on the same day).

The toll free dial-in details for the live conference call are as follows:
- USA: 1-800-8713110 or 1-888-7007397
- China: 800 803 6017
- Hong Kong: 800 96 8899
- International access: +886 2 21928018
Participant PIN Code: 913206#

A live webcast of the conference call will be available on: http://www.zucast.com/webcast/TuyVthBE

A telephone replay of the call will be available 2 hours after the end of the conference through December 20, 2016 at 7 a.m. Eastern Standard Time.

The dial-in details for the replay are as follows:
1. Dial the playback number: +886 2 33220777
2. Enter playback reference number: 186625 #
3. Enter participant pin code: 691450 #
Accessible Duration: 30 Days

Safe Harbor Statement:

This news release 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 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.

Exchange Rate Information:

The United States dollar ($) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into United States dollars for the convenience of the reader were calculated at the certified exchange rate of $1.00 = RMB6.6459 on June 30, 2016 as set forth in the H.10 weekly statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into $ at that rate on June 30, 2016, or at any other date. The percentages stated are calculated based on RMB amounts.

About China Xiniya Fashion Limited:

Xiniya is a leading provider of men's business casual apparel in China. The Company designs men's business casual and business formal apparel and accessories, which are marketed under the Xiniya brand, and sells through its distributors and retail network. Its products are sold to consumers at over 300 authorized retail outlets owned and managed by third parties located in 20 provinces, four autonomous regions, and four municipalities in China. This retail network focuses on second and lower-tier cities, where increasing affluence has led to an improvement in living standards and where most international men's apparel brands do not have a significant presence. The Company's target consumers are male working professionals in China between the ages of 25 and 45 who seek fashionable clothing to suit their working and lifestyle needs. For more information, please visit the Company's website at

http://www.xiniya.com.

For additional information, please contact:

China Xiniya Fashion Limited
Mr. Chee Jiong Ng
Chief Financial Officer
Telephone: +86 1365 5939 932
Email: ngcheejiong@xiniya.com

CHINA XINIYA FASHION LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
FOR THE SIX MONTHS ENDED JUNE 30
(Expressed in thousands, except per share and per ADS amounts)

2015
RMB		2016
RMB		2016
USD
Revenue 214,274 15,093 2,271
Cost of sales (162,019) (100,725) (15,156)
Gross profit/(loss) 52,255 (85,632) (12,885)
Interest and other income 10,493 2,715 409
Selling and distribution expenses (36,991) (36,033) (5,422)
Administrative expenses (12,420) (10,279) (1,547)
Profit/(loss) before taxation 13,337 (129,229) (19,445)
Income tax expense (3,773) - -
Profit/(loss) for the period 9,564 (129,229) (19,445)
Other comprehensive income/(loss) for the period:
Exchange differences on translation of financial statements of entities outside the mainland of the People's Republic of China 14 562 85
Total comprehensive income/(loss) for the period 9,578 (128,667) (19,360)
Earnings/(loss) per share - basic and diluted (in RMB) 0.04 (0.57)
Earnings/(loss) per ADS - basic and diluted (in USD) 0.11 (1.37)
Weighted average shares outstanding in the period ('000) 227,717 227,717
Weighted average ADS outstanding in the period ('000) 14,232 14,232
One ADS represents 16 ordinary shares.


CHINA XINIYA FASHION LIMITED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands)

As of
December 31,		As of
June 30,		As of
June 30,
201520162016
RMBRMBUSD
UnauditedUnaudited
Assets
Non-current assets
Property, plant and equipment 3,843 3,047 458
Intangible assets 17,462 12,345 1,858
Total non-current assets 21,305 15,392 2,316
Current assets
Cash and cash equivalents 203,371 63,133 9,499
Trade receivables 569,522 382,937 57,620
Prepayments to suppliers 46,050 42,720 6,428
Inventories 14,364 106,685 16,053
Other receivables and prepayments 80,127 132,266 19,902
Total current assets 913,434 727,741 109,502
Total assets 934,739 743,133 111,818
Equity and liabilities
Equity
Share capital 77 77 11
Additional paid-in capital 519,077 519,077 78,104
Statutory reserve 122,615 122,615 18,450
Currency translation reserve (18,475) (17,913) (2,695)
Retained earnings 108,465 (20,764) (3,124)
Total equity 731,759 603,092 90,746
Current liabilities
Trade payables 6,913 12,643 1,902
Deposits received from distributors 58,300 77,590 11,675
Other payables and accruals 51,054 47,395 7,132
Provision for liability 84,300 - -
Current income tax payable 2,413 2,413 363
Total current liabilities 202,980 140,041 21,072
Total equity and liabilities 934,739 743,133 111,818


CHINA XINIYA FASHION LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30
(Expressed in thousands)

201520162016
RMBRMBUSD
Cash flows from operating activities:
Profit/(loss) before taxation 13,337 (129,229) (19,445)
Adjustments for:
Depreciation of property, plant and equipment 1,591 796 120
Loss on disposal of property, plant and equipment 387 - -
Amortization of intangible assets 1,094 2,393 360
Intangible assets written off - 2,724 410
Interest income (8,618) (2,198) (331)
Foreign exchange losses 11 453 68
Operating profit/(loss) before working capital changes 7,802 (125,061) (18,818)
Decrease in trade receivables 37,423 186,585 28,075
(Increase)/decrease in prepayments to suppliers (10,060) 3,330 501
Increase in inventories (235,530) (92,321) (13,891)
Increase in other receivables and prepayments (46,347) (66,618) (10,024)
(Decrease)/increase in trade payables (7,069) 5,730 862
Increase in deposits received from distributors 6,200 19,290 2,903
Increase/(decrease) in other payables and accruals 5,857 (3,659) (551)
Decrease in provision for liability - (84,300) (12,684)
Cash used in operating activities (241,724) (157,024) (23,627)
Income tax paid - - -
Net cash used in operating activities (241,724) (157,024) (23,627)
Cash flows from investing activities:
Decrease in time deposits held at banks with maturity over three months (50,000) - -
Acquisition of property, plant and equipment (3,397) - -
Proceeds from the disposal of property, plant and equipment 1,998 - -
Interest received 7,111 16,677 2,509
Net cash (used in)/generated by investing activities (44,288) 16,677 2,509
Net decrease in cash and cash equivalents (286,012) (140,347) (21,118)
Cash and cash equivalents at beginning of the period 985,097 203,371 30,601
Exchange (losses)/gains on cash and cash equivalents (25) 109 16
Cash and cash equivalents at end of the period 699,060 63,133 9,499

SOURCE: China Xiniya Fashion Limited