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Powerland AG: Powerland reports revenue growth and publishes audited Annual Report for full year 2014 - Seite 3

Due to higher financial expenses, profit before tax fell from EUR 9.6
million in 2013 by 19.8% to EUR 7.7 million in 2014.

Increased equity ratio

Equity increased from EUR 151.3 million as at 31 December 2013 by 12.8% to
EUR 170.6 million as at 31 December 2014 mainly resulting from the profit
generated in 2014. The equity ratio increased from 68.2% as at 31 December
2013 to 78.5% as at 31 December 2014. Prior-year figures have been adjusted
in accordance with IAS 8 (please refer to note 4 in the Annual Report).

Conservative outlook for 2015

During China's annual parliamentary meeting in March 2015, an economic
growth target at "around 7 per cent" was announced for 2015. This signifies
the slowest expansion rate since 25 years. It was also admitted that China
faced greater economic headwinds this year than in 2014.

In this context, the Company holds a conservative outlook about 2015. Group
revenue is expected to decline to approximately EUR 112 million in 2015 due
to weakening demand from both the domestic and the overseas market. In
response, Powerland plans to deepen the restructuring of its nationwide
distribution network and contract self-operated stores to further reduce
store maintenance cost. Furthermore, sales & distribution channels of the
Luxury segment will be further diversified to offset the impact from the
decelerating retail market, but the effect of the strategic transition is
yet to be testified. In addition, the Company will continue to pursue
austerity in the management of operating expenses. However, due to the
adverse market conditions faced by our distribution partners, the trade
receivable position is subject to higher provision adjustment. As a result,
the Company predicts that Group EBIT of 2015 will decline to approximately
EUR 6 million and Group net profit is exposed to risk of net loss. To
improve liquidity, the Company has no major capital expenditure plan in
2015 and will have exhaustive efforts to reduce the level of working
capital.

For the annual report for full year 2014 and further information about the
Company please refer to: www.powerland.ag

For further information, please contact:

Powerland AG
c/o GFD - Gesellschaft für Finanzkommunikation mbH
Fellnerstrasse 7-9
60322 Frankfurt am Main
Germany
Phone: [phone] - 459
Fax: [phone] - 276
E-mail: [e-mail]
Home: http://www.powerland.ag



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Language: English
Company: Powerland AG
c/o GFD mbH, Fellnerstr. 7-9
60322 Frankfurt am Main
Germany
Phone: +49 69 - 66554-459
Fax: +49 69 - 66554-276
E-mail: [e-mail]
Internet: www.powerland.ag
ISIN: DE000PLD5558
WKN: PLD555
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart


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363191 29.05.2015