Exceed Company Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. revenue for the third quarter of 2012 was RMB 553.3 million (USD 88.0 million), a 48.1% decrease from RMB 1,065.7 million for the third quarter ended September 30, 2011. The year-over-year decrease in revenue was primarily due to a decrease in the delivery of products to distributors. Profit before tax decreased by 78.8%, from RMB 167.7 million for the third quarter ended September 30, 2011 to RMB 35.6 million (USD 5.7 million) for the third quarter ended September 30, 2012. Profit before tax excluding the impact of change in fair value of contingent share liability decreased by 80.1%, from RMB 179.0 million for the third quarter ended September 30, 2011 to RMB 35.6 million (USD 5.7 million) for the third quarter ended September 30, 2012. Profit attributable to equity holders of the company for the third quarter ended September 30, 2012 was RMB 30.4 million (USD 4.8 million), a decrease of 79.0% from RMB 144.8 million for the third quarter ended September 30, 2011. Profit excluding the impact of change in fair value of contingent share liability decreased by 80.5%, from RMB 156.1 million for the third quarter ended September 30, 2011 to RMB 30.4 million (USD 4.8 million) for the third quarter ended September 30, 2012. Cash outflow from operating activities was RMB 109.4 million (USD 17.4 million) for the third quarter ended September 30, 2012, compared to an inflow of RMB 55.9 million for the same period in 2011, a decrease that was primarily due to the increase in trade receivables. Operating profit was RMB 35,792,000 against RMB 179,248,000 a year ago. Earnings per diluted share was RMB 0.92 against RMB 4.81 a year ago.

Revenue decreased by 21.5%, from RMB 2,558.6 million for the first nine months in 2011 to RMB 2,009.8 million (USD 319.8 million) for the first nine months in 2012. Profit attributable to equity holders of the company for the first nine months decreased by 56.0%, from RMB 427.7 million in 2011 to RMB 188.3 million (USD 30.0 million) in 2012. Earnings per diluted share was RMB 5.71 against RMB 13.77 a year ago. Operating profit was RMB 218,539,000 against RMB 417,318,000 a year ago. Profit before tax was RMB 218,153,000 against RMB 482,453,000 a year ago. Cash outflow from operating activities was RMB 276,811,000 for the period.


As a result of the foregoing, Exceed expects to generate net revenues in the range of RMB 350.0 million to RMB 400.0 million in the fourth quarter of 2012, representing an approximate year-over-year decrease of 45.2% to 52.0%, as compared with RMB 729.9 million in the same period of 2011.