China Xiniya Fashion : Reports 2016 First Half Financial Results

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:

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.