Exceed Company Ltd. reported unaudited earnings results for the fourth quarter and audited earnings results for the year ended December 31, 2012. For the quarter, the company reported profit of RMB 10,634,000 on revenue of RMB 373,738,000 against profit of RMB 42,423,000 on revenue of RMB 729,940,000 a year ago. Operating profit was RMB 13,254,000 and profit before tax was RMB 13,002,000 against operating profit of RMB 80,898,000 and profit before tax of RMB 53,552,000 a year ago. Net cash inflow from operating activities was RMB 47,491,000 against RMB 70,240,000 a year ago.

For the year, the company reported profit of RMB 198,942,000 on revenue of RMB 2,383,516,000 against profit of RMB 470,082,000 on revenue of RMB 3,288,561,000 a year ago. Operating profit was RMB 231,793,000 and profit before tax was RMB 231,155,000 against operating profit of RMB 498,215,000 and profit before tax of RMB 536,004,000 a year ago. Net cash outflow from operating activities was RMB 229,319,000 against net cash inflow from operating activities of RMB 320,435,000 a year ago. The year-over-year decrease in revenue was primarily due to a decrease in the volume of products produced and delivered to distributors.

As a result of the foregoing, the company expects that net revenues in 2013 will be adversely affected by the sluggish economic conditions and industry-wide inventory level correction.