CAMK.L Regulatory News (CAMK)

Camkids Group plc

("Camkids", the "Company" or the "Group")

Trading update and statement on share price

Camkids Group plc (AIM: CAMK), a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers, announces the following trading update.

As explained in the Group's trading announcement on 17 November 2014, the Group's distributors are adopting a cautious approach towards 2015 given the macro-economic backdrop in China and the reduction in consumer spending. In light of this backdrop, in December 2014 certain of the Group's distributors requested the postponement or cancellation of some orders which, by way of a commercial gesture aimed at maintaining good relationships with certain of the Group's key distributors, totalled RMB 79m (unaudited). As a result of this the Directors anticipate that the Group's net profit after tax will be approximately 12.5% (unaudited) behind market forecasts. The Board has been reviewing the Group's planned cost base for 2015 with a view to maintaining the Group's net profit as much as possible and further announcements will be made at the appropriate time.

As announced on 29 September 2014, the Group has purchased an additional piece of land not far away from the existing factory in order to develop the Group's new facilities. Construction had originally been scheduled to commence in early 2015. As part of the Group's review of its planned cost base, the Group has decided to delay the construction whilst it evaluates other potentially cheaper alternatives, including leasing or purchasing an existing one.

The Group's cash balances as at 31 December 2014 were RMB 410m (unaudited). The Group is increasingly looking to manage its treasury function in a more pro-active manner and in April 2014 placed approximately RMB 100m in a 12 month deposit account at a 3% pa interest rate.

The Directors note the recent falls in the Company's share price and consider that the current price fundamentally undervalues the Group. As stated above, the Group's cash balances as at 31 December 2014 were RMB 410m (unaudited), equal to 57p per share or 370% of the Company's market capitalisation as at 3 February 2015. The Group remains committed to its AIM listing.

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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 children's 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 over 1,336 franchised retail outlets, and continues to develop its e-commerce business and currently has over 200 product lines on offer through its existing online partners of Taobao and JD.com.

Camkids has received a number of prestigious awards. In September 2014 it was announced that Camkids had been included in the rankings as one of "The Top 500 Asia Brands". In addition to this prestigious award, the Group's Chairman has also been honoured as one of the "Top ten new brand creators in Chinese industry".

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