CAMK.L Regulatory News (CAMK)

Camkids Group plc

("Camkids", the "Company" 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, announces the following trading update.

The Board of Camkids confirms that the Group is trading in line with market expectations for 2014. Camkids has recently launched a range of cycling products by sponsoring a cycling event in its home city of Jinjiang. A news report of the event can be accessed at http://v.youku.com/v_show/id_XODIzNTQxMTgw.html.

Camkids reports that online sales from its Chinese Double 11 day, a national online shopping carnival which took place on 11 November 2014, were encouraging with Camkids being ranked 3rd in the children's outdoor sales after Anta and Nike Kids. Double 11 day draws in millions of Chinese shoppers looking for discounts, who typically spend significant sums on China's e-commerce sites during that one day of discounts. Whilst still in its infancy, the Board is confident that its online business has significant growth potential.

As announced on 29 September 2014, the Group held its sales fair in Jinjiang City on 4 August 2014. The Board reports that feedback from the Group's distributors on the design of its product range has been extremely encouraging. Notwithstanding this, the Group's distributors are adopting a cautious approach towards 2015 given the macro-economic backdrop in China and the reduction in consumer spending. At the same time, the Company's strategy of launching in Tier 3 and Tier 4 cities and the various transitional changes that this entails as the Company develops a mid-end range in order to boost sales in these new cities has also affected the value of the Group's current order book. These factors, combined with the fact that the final value of the Group's spring/summer order book is approximately 13 per cent. behind the same period last year, lead the Board to adopt a conservative stance towards its prospects for 2015. In view of this, the Board is currently reviewing the Group's planned cost base for 2015 with a view to maintaining the Group's net profit as much as possible.

Despite the above factors, the Company has been able to ensure that its healthy gross profit margin is maintained above 35 per cent. through simplifying its designs and controlling its production costs. On a more medium-term basis, the Board believes that the Group's prospects remain solid and it views the future with confidence.

The Group was encouraged by the recent meetings its Executive Directors held with certain institutional and other investors in London and remains committed to active engagement with its shareholders.

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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.