DGAP-Adhoc

Snowbird AG: China market growth offers huge potential for Snowbird - Subscription period for Snowbird shares will end 24 September 2014

Snowbird AG / Key word(s): IPO/Market Report

17.09.2014 18:15

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China market growth offers huge potential for Snowbird
Subscription period for Snowbird shares will end 24 September 2014

Munich, 17.09.2014 - Currently China supplies some 75% of the world's raw
and processed down exports. With revenue of 136,9m euro in 2013, a net
profit of 28.3m euro and a stable gross profit margin of ca. 40% over the
last three years, Snowbird, one of the leading companies in the down
processing and manufacturing of high quality down, down clothing, down
bedding, down duvets and down pillows, is highly profitable and operates in
constantly growing markets.

Chinas economy is still fast growing with an annual growth rate of more
than seven percent. This has major influence on the people's economic
prosperity. In Europe and the U.S. close to 90 percent of the population
have down bedding. In China it is less than one percent of the population
of approx. 1.4bn people. This offers Snowbird a huge growth potential.

Independent certificates from German and international institutions proof
that Snowbird produces top quality down with more than 95 percent purity.
Snowbird's selling price per kilogram is approx. 100 euro in China. In
Europe prices for this peak luxury quality down is up to 800 euro per
kilogram. This significant price difference is a major driver for Snowbird
to expand their business towards Europe. Again this offers huge potential
for future profitable growth.

Snowbird wants to become the largest down processing company worldwide.
With the proceeds from the IPO Snowbird will finance the expansion of the
existing production capacity. The company already started building a new
sewing plant that is expected to start operations in Q4/2014. When ramped
up the production capacity jumps from 1.9 million today to 8.2 million
pieces per year.
This enables Snowbird to take advantage of the increasing output from the
new down processing facility that started operations in Q4/2013 and which
is in the ramp up phase, currently having a utilization of ca. 30%. With a
production capacity of up to 4,131 tons of high quality down per year it is
one of the world's largest down processing sites.

Yan Changzai, CEO and founder of Snowbird: "We are shocked from the bad
news from Ultrasonic. One more black sheep that destroys all the
trust-building measures we have done so far. We are the first Chinese