DGAP-News

KINGHERO AG: First Measures taken to ensure the Cash Position

DGAP-News: KINGHERO AG / Key word(s): Restructure of Company
KINGHERO AG: First Measures taken to ensure the Cash Position

20.12.2013 / 14:50

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KINGHERO AG: First Measures taken to ensure the Cash Position

Wiesbaden, December 20, 2013. To secure the cash position of KINGHERO AG
the management board has concluded arrangements with debtees. These
arrangements shall secure the financial situation of the company for the
time being in order for the company to remain capable of acting.

On the operating level the management board of the German Holding Company
has started restructuring measures in the affiliated company KINGHERO Group
Holdings Ltd. They concentrate mainly on securing further influence spheres
including the affiliated companies Kinghero Fashion (Xiamen) Co. Ltd. and
Xiamen Michelle Co. Ltd.

Furthermore the management team of the company is in contact with investors
concerning short-term restoration benefits and further restructuring
measures.

The management board and the supervisory board of KINGHERO AG plan to
convene an extraordinary general meeting during the first quarter 2014. If
required, the committee may decide on additional measures to ensure the
continuity of KINGHERO AG.

Regarding the outstanding consolidated financial statements for the year
2012 the situation is still the following: The management board of KINGHERO
AG demanded the management of the operative entities in China several times
to present auditable consolidated financial statements for the financial
year 2012. Furthermore, the operative entities were asked to remove the
obstacles preventing KINGHERO's auditor for the financial year 2012, Warth
& Klein Grant Thornton AG Wirtschaftsprüfungsgesellschaft ('Grant
Thornton'), to work on the consolidated financial statements. The auditor
has presented these obstacles at the end of October 2013. The operative
entities in China have not met repeated requests until today.

Therefore the management board of KINGHERO AG could not finish the
consolidated financial statements yet. At present the management board acts
on the assumption that no auditable consolidated financial statement can be
presented for the year 2012 for the time being.

The members of the management board and the supervisory board will inform
the investors immediately when new progress can be reported.

For further information please contact:

Kirchhoff Consult AG
Dr. Kay Baden
Phone: [phone]
[e-mail]

KINGHERO AG
Hagenauer Str. 47
D-65230 Wiesbaden
Phone: [phone]