Snowbird AG
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 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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 listed company in Germany that will capitalize the listed company with sufficient cash and also will grant the supervisory board members direct reading access to the bank accounts for efficient control. There is no cashing out. None of the existing shareholders will sell shares during the IPO. Additionally the shares from the major shareholders, myself and Mr. Choi from Hong Kong, are subject to a lock-up period of 36 months. Snowbird is a mid size family-owned company and I, being the founder of the company, live in Henan Province for many years. Together with my colleagues from the management board we have several decades of experience in the down industry and the financial industry. We all want to produce high quality down in a sustainable and environmental friendly way. And we have installed a highly qualified international supervisory board that brings together very experienced members with substantial financial and operational background in the down and fashion industry. Last but not least we have a second level of management in place that consist of experienced experts, that includes, among others, my son Yan Zhaorui." With the Initial Public Offering, Snowbird is setting the next step for its expansion strategy within China and towards Europe. It is intended to disclose the final offer price next Wednesday, 24 September 2014, which is the last day of the subscription period. The first day of trading of Snowbird AG shares (International Securities Identification Number: DE000A1PHEL8, German Securities Identification Number: A1PHEL, Ticker Symbol 8S9) on the Prime Standard of the Frankfurt Stock Exchange is scheduled for Monday, 29 September 2014. Service The prospectus, approved by BaFin, as well as additional information about the company and the IPO are provided on the new Snowbird website www.snowbird-ag.com Snowbird AG - one of largest down processing companies worldwide Snowbird is one of the world leading down processors and known for high quality down-filled textiles and for down bedding, down duvets and down pillows. With its new state of the art production facility, located in China, Henan Province, the company is able to process down at highest quality standards. Snowbird operates very profitable along the value chain from down processing to down clothing and down bedding production. www.snowbird-ag.com Investor Relations Contact Please direct all your requests to: max. Equity Marketing GmbH Maximilian Fischer Marienplatz 2 80331 Munich, Germany Tel: +49 89 139 28890 E-Mail: ir@snowbird-ag.com IMPORTANT NOTE - Disclaimer This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Snowbird AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). Furthermore, the shares may not be offered or sold in Japan or to or for the account or benefit of Japanese citizens. No offer or sale of transferable securities is being made to the public outside Germany and Luxembourg. The offer in Germany and Luxembourg will be made exclusively by means of and on the basis of a prospectus published on the company's website www.snowbird-ag.com and available free of charge at CM-Equity AG, Munich. 17.09.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Snowbird AG Ferdinandstraße 25 20095 Hamburg Germany Phone: Fax: E-mail: Internet: ISIN: DE000A1PHEL8 WKN: A1PHEL Listed: Regulierter Markt in Frankfurt (Prime Standard) Notierung vorgesehen / intended to be listed End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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