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Firstextile AG: Newest uniform customer: China Mobile

DGAP-News: Firstextile AG / Key word(s): Contract
Firstextile AG: Newest uniform customer: China Mobile

21.08.2014 / 11:08

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Firstextile AG: Newest uniform customer: China Mobile

- Framework agreement successfully signed with the 20th national-wide
uniform customer China Mobile

- Chinese telecom giant offers huge upside potential in the Uniform
segment

Jiangyin (China) / Frankfurt (Germany), 21 August 2014 - Firstextile AG
(FT8) has recently successfully signed a framework agreement with China
Mobile, one of the largest mobile telecommunications companies in China.
Thereby all preconditions are fulfilled to receive orders in future.

After winning the uniform bid of China Mobile and having received the
Letter of Acceptance, Firstextile now gains the opportunity to supply
uniforms to the Chinese telecom giant with nearly 600,000 employees with
the conclusion of the contract. By signing the framework documents
regarding the future cooperation at the end of the second quarter 2014,
Firstextile has fulfilled all preconditions to supply uniforms to China
Mobile as its short-listed supplier. For the time being, Firstextile is
already the short-listed supplier of 20 government institutions and state
owned enterprises, including the Chinese Military (PLA), China Security
Association, China Railway, China Unicom, among others.

Fred Yang, CEO and founder of Firstextile AG comments: "We are very glad to
have successfully gone through the bidding process of China Mobile. This
once again proves our competitiveness in the uniform market backed by our
high product quality standard. Although we have been experiencing a
difficult period of fewer bulk orders in the first quarter of 2014, we
never stopped striving for new clients and orders. With China Mobile as a
new milestone, we expect more to come."

As one of the three business segments of Firstextile, the Uniform segment
usually contributes 15% to 25% of the company's total revenue. However, the
nature of this segment makes its performance dependent on the timing of
bulk orders. Furthermore, due to the higher regulations, the bidding
process in the uniform market became overall much more complicated and thus
prolongs the whole process. Richard Cao, CFO of Firstextile comments:
"During the second quarter we already saw a recovery in our uniform segment
with an improving order momentum. Despite some delay, these orders will be
reflected in revenues and earnings in the remaining period of 2014. Due to