CAMK.L Regulatory News (CAMK)

Camkids Group plc

("Camkids" or the "Group")

Trading update

Camkids Group plc (AIM: CAMK), a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers, is pleased to give the following trading update ahead of the Group's interim results for the six months ended 30 June 2014, which will be announced in September 2014.

Highlights:

Zhang Congming, Chairman and Chief Executive Officer of Camkids Group plc, said: "We are pleased with the strong progress that the Group has made in the first half of 2014 and that trading continues to be in line with market expectations.

"Our R&D department has been working hard on our new product range that we will be showcasing to our distributors at the 2015 Spring / Summer Sales Fair, which will be held in Jinjiang on 4 August 2014. With regards to the proposed manufacturing facility that we outlined at the time of our final results, we can report that we are currently in advanced negotiations on a site which is located near to the train station in our home town of Jinjiang. We look forward to reporting further updates on both the Sales Fair and the land acquisition when we announce our interim results in September 2014."

Richard Sweet, Non-Executive Director, said: "Recently Jacques-Franck Dossin and I have been able to continue the Non-Executive Directors' on-going programme of visiting as many of Camkid's stores as possible and we have now visited in excess of 40 different stores since IPO. We were particularly impressed by the traction that the recently appointed Shanghai distributor is getting and, based on my experience of living and working as a retailer for three years in Shanghai, I have first hand experience of the quality of a number of the Shanghai retail locations."

The Board is pleased to confirm that trading across the Group's stores is going well and that trading across all of the Group's divisions continues to be in line with market expectations for the current financial year.

At 30 June 2014 the Group had a total of 1,336 retail stores, an increase of 51 retail stores from 31 December 2013 (H1 2013: 1,100 retail stores). At the same time, Camkids is making strong progress with its strategic expansion into tier 3 and tier 4 cities throughout China. Marketing remains a key focus of the Group and the new Camkids branding is currently being implemented across all of its retail stores prior to the launch of a new TV advertising campaign.

In the first half of 2014, the Group has focused on developing its e-commerce business and Camkid's currently has 200 product lines on offer through its existing online partners of Taobao and JD.com. Whilst e-commerce in China remains in its infancy when compared with to the Western world, Camkids is confident that this additional channel to market has significant future potential for the Group.

Since 30 June 2014, Camkids has remained active in its promotional activities. The Group participated in the Asia Outdoor Trade Show in Nanjing between 23-26 of July 2014 and also sponsored a group of university students on a 29 day bike ride from Tibet to Fujian province, which started on 10 July 2014. Both events have received media coverage and have heightened the Camkids brand profile with consumers. In addition, the Group's Sales Director, Mr Hong, has recently been interviewed by a Shangdong TV news station and also by the Quanzhou Financial Channel on the development of children shoes market in China. Both interviews (which are in conducted in Chinese) can be viewed on the links below:

Quanzhou Financial Channel: http://www.camkids.com.cn/read.asp?id=100

Shangdong TV news station: http://www.camkids.com.cn/read.asp?id=96 

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Notes to Editors

Camkids is a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers.

Based in Fujian province in China, the Group focuses on teenage sportswear for outdoor activities, combining functionality and innovation. The products are mid-range price based, targeting mid and high range markets within China.

The three main product areas are:

· Camkids outdoor clothing - all weather jackets, waterproof trousers, shirts, tops and T-shirts, woollen sweaters, jeans, trousers shorts and skirts;

· Camkids footwear - hiking boots, outdoor leisure footwear, flip-flops, sandals and boots

· Camkids equipment and accessories - telescopes, backpacks, technical packs, tents, sleeping bags, headgear, caps, kettles, headlights and torches.

The Group designs its entire product range and manufactures the majority of its footwear. Outdoor apparel and accessories are currently manufactured by third party OEMs.

Camkids' primary route to market for the sale of its products is through its network of distributors. The Group has established an extensive distribution network across 29 provinces, 4 municipalities and 5 autonomous regions within the PRC and is successfully expanding its presence in tier 3 and tier 4 cities. The Group has 17 authorised distributors operating 1,336 franchised retail outlets, and is developing an online e-commerce platform to target online retail.

Camkids has received a number of prestigious awards. In January 2014, the Group was recognised by Asia Brand Association as the Top Brand in China for 2013 and the top ten Industry Customer Satisfaction Brand's. The Group's Chairman also received the Brand China 'People of the Year' award.

For more information please visit www.camkids-ir.com.