China Xiniya Fashion Limited

1

January 2011

Presenter

Mr. Chee Jiong NgChief Financial Officer

2

Chief Financial Officer

Who We Are

Market Positioning

Top 5 business casual menswear brand in China based on retail sales

TargetConsumers

Product Positioning

Stylish yet comfortable apparel suitable for

work, travel and leisure

White-collar male, with average to high

disposable income, aged 25-45

3

Presence

Business Model

- Asset-light distributor model- Lean corporate structure with 30%+ operating profit margin

Consumers

Nationwide across 21 provinces, 4 municipalities and 5 autonomous regions

# of Outlets1,300+ Xiniya-branded retail stores

Xiniya’s Brand Spokesperson Is

Popular Entertainment Icon in China

� Renewed sponsorship contract with Jacky Cheung – a leading pop star in China –through 2013

� Peak record sales in China were similar to Michael Jackson; leading roles on television and recipient of several acting awards

� Xiniya will sponsor ½ Century Tour in 2011 in select cities across China; Xiniya is the main sponsor in Quanzhou

4

is the main sponsor in Quanzhou

� Xiniya brand will be on all the concert ad campaigns – daily press, posters, concert website – adding momentum to 2011 selling season

Our History

� Establishment of

retail network, first

retail outlet opened

in Jan 2006

� Recognized as a

“Well-Known

Trademark of China”

2010

� 2nd store image

upgrade began

� Began retail

network

restructuring

First ChinaApparel Company to list on NYSE

20092008

5

� Registration

of “Xiniya”

trademark

1993

� Recognized as a

“Fujian Famous

Trademark” � Signed Jacky

Cheung as our

brand

spokesperson

� Surpassed 1,000

retail locations

� 1st store image

upgrade

� Tripled revenue

and net income

in two years

2007

2006

2005

� Posted Q1-Q3 2010

results of $84.6

million in revenue, a

36.2% increase YoY

� Posted Q1-Q3

US$23.2 million in

net income, a YoY

increase of 39.4%

� Opened 223 new

stores and reached

a total of 1,404

stores (1)

(1) As of December 31, 2010.Note: FX translation was made at the rates in effect on the respective dates.

Management Team

� Founder

– Introduced current business model in 2005

– Has 23+ years of experience in China’s men’s

apparel industry

– Director at Quanzhou Textile and Garment Chamber

of Commerce and Director of Shishi City Hubin

District Chamber of Commerce

– School of Continuing Education, Tsinghua University

(Business Administration)

� Co-Founder � Has 15+ years experience in financial reporting and

auditing, with more than 13 years at PwC in various

Mr. Qi Ming XU

Chairman & CEO

Mr. Kang Kai ZENG Mr. Chee Jiong NG

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� Has 14+ years of experience in China’s men’s

apparel industry

– Began working with the Xiniya brand in 1995

– School of Continuing Education, Tsinghua

University (Business Administration)

auditing, with more than 13 years at PwC in various

roles including Senior Manager

– Financial Controller at Air-Sys Refrigeration

Engineering Technology (Beijing)

– University of New South Wales (Master of

Commerce / Corporate Finance)

� Has 15+ years of experience in

marketing roles within the

apparel industry

– Deputy General Manager

at Xiniya in 2006

– Previously marketing

manager at Fujian Tries

– Zhejiang Gongshang

University (Marketing)

� Has 20+ years of experience

in garment production

– Joined Xiniya in 2006

– Chief Production Officer

at Shishi Xiniya from

2003-2005

– Putian Junior College

(Civil Engineering)

� Recognized as One of the Top

10 Designers in China

� Has 14+ years experience in

merchandise design

– Previously Chief Designer

at Fujian Tries Group and

D-Wolves Group

– Tianjin College of Textile

Engineering (Fashion

Design)

COO CFO

Mr. Qi Wen YANG Mr. Ming Jiang LIU Mr. Qi Fa ZHANG

Chief DesignerDeputy GM / Sales & Marketing Director

ProductionDirector

China’s GDP growth is expected to remain in double-digits

� According to IMF, China’s 2010E expected growth of 10%

Macroeconomic Growth Drives Consumer Spending

2005A – 2015E GDP in China

CAGR:15.9%

2005A – 2015E Disposable Income in China

CAGR:13.2%

Disposable income levels and quality of living have improved dramatically due to China’s macroeconomic strength, especially for urban households

$2,239

$5,478

$9,797

2005 2010E 2015E

(US$ in billions)

$1,282

$2,696

$4,436

2005 2010E 2015E

(US$)

7

$821

$2,168

$4,259

2005 2010E 2015E

(US$ in billions)

� According to IMF, China’s 2010E expected growth of 10% more than doubles that of the global output

2005A – 2015E Retail Sales of Consumer Goods

CAGR:17.9%

2007A-2009A Per Capita GDP CAGR (By Tier)

Growth in Tier 2 and below markets outpaces that of Tier 1

Ideal target market for rapid expansion

strength, especially for urban households

Growth of retail sales of consumer goods is expected to outpace that of GDP and disposable income growth

11.3%

18.3%17.2% 18.1%

Tier 1 Tier 2 Tier 3 Tier 4

Note: FX translation was made at the rates in effect on the respective dates.Source: Frost & Sullivan.

$21.8

$50.7

$106.7

2005 2010E 2015E

(US$ in billions)

One of the World’s Largest Menswear Markets

Dynamic Growth Pattern of China MenswearChina vs US and EU Menswear Markets - 2009

CAGR:17.2%

$44.0

$31.1

$58.2

China U.S. EU

(US$ in billions)

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Source: Frost & Sullivan

Tier 4 (18.0%)Tier 1 (14.0%)

Tier 2 (27.1%)

Tier 3 (40.9%)

2009

Menswear Market Size in Different Tiers(% of Total) in China

Others include Business Formal and Accessories.

33.0%41.3%

53.1%

67.0%58.7%

46.9%

2005 2009 2015

Casual Others (including Business Formal and acccessories)

Note: FX translation was made at the rates in effect on the respective dates.Source: Frost & Sullivan.

Casual Menswear Market Growth in China

Leading Men’s Business Casual Apparel Brand

Top 10 Men’s Business Casual Apparel Brands(1)

� China’s business casual menswear market is still fragmented

– Top 10 players constitute only 33.3% of the market without dominant brand in the market

� Despite being one of the top 5 business casual menswear brands, we have significantly fewer retail

outlets compared to our competitors

– We are well-positioned to continue gaining market share through aggressively growing our retail

network

% of Total Market Share # of Outlets

9

(1) Market share based on 2009 retail revenues. Outlets as of year end 2009. Source: Frost & Sullivan.

% of Total Market Share # of Outlets

2.1%

2.3%

2.4%

2.5%

2.8%

2.9%

3.6%

3.6%

4.9%

6.2%

Joe One

Taizilong

Baoxiniao

Fordoo

Sevenbrand

Xiniya

FIRS

K-Boxing

Septwolves

China Lilang

Xiniya

748

1,181

1,580

1,750

2,180

2,350

2,430

2,561

3,235

3,249

Baoxiniao

Xiniya

FIRS

Taizilong

Fordoo

Sevenbrand

Joe One

China Lilang

K-Boxing

Septwolves

Xiniya

Impressive Growth Potential – Breadth and Depth

� We target Tier 2 and below cities,

prefectures and counties in China:

� Large unexplored market

potential

� More attractive growth dynamics

� Have not been penetrated by

international brands

Tier 2-4 Cities and Regions

Current

Unexplored

Xiniya Store Distribution (by # of Regions)

78.3%

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2 – 5 stores in 207 cities

� Out of a total of 3,224 Tier 2 and

below cities and regions in China(1),

Xiniya currently has stores in only

698 of them

� We also see significant room for

growth in our existing geographies

where we could increase market

penetration substantially

(1) Does not include 40,000+ small townships within the Tier 4 segment.Source: Company information.

1 store in 470 cities

21.7%

Xiniya Store Penetration (by # of Cities)

6 - 10 stores in 14 cities

Tier 2-4 Cities and Regions

10+ stores in 7 cities

Our Customer

White-collar male, with average to high

disposable income, aged 25-45

Sophisticated and stylish but unwilling to compromise comfort

Aspiration for cosmopolitan lifestyle and

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Aspiration for cosmopolitan lifestyle and culture

Entertains in conjunction with work and leisure

Enjoys travel – requires comfortable, stylish clothing for his on-the-move lifestyle

Distributor Network

Heilongjiang64

Jilin20

Qinghai

Xinjiang64

Shandong61

Tianjin5

Hebei29

Inner Mongolia25

Gansu17

Ningxia2

Shanxi21

Beijing18

Liaoning71

Stores Breakdown by Channels

(as of September 2010)

Channel# of

Partners

# of

Stores

Company Operated 1 1

Department Store Chains 24 145

Distributors 26 63

Department Store Chains (1) 35 181

Authorized Retailers 976

Total 1,366

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60 or more retail outlets and department store concessions

40 to 59 retail outlets and department store concessions

20 to 39 retail outlets and department store concessions

Less then 20 retail outlets and department store concessions

Distributor Sales 2007-2009

Top 5 Distributors

30.4%24.3% 19.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2007 2008 2009

Sichuan21

Anhui28

Yunnan50

Henan56

Shanghai2

Jiangsu62

Tibet1

Guizhou36

Guangdong56

Hainan5

Shaanxi51

Chongqing81

Jiangxi42

Hubei77

Hunan105

Guangxi92 Taiwan

Zhejiang132

Fujian72

Total 1,366

Our Business Model

976 Stores Managed

63 Stores Directly Managed by Distributors

145 Department Store Concessions

1 Flagship Store Operated by Xiniya

EndConsumers

Xiniya

26 Exclusive

Distributors

Authorized

24 Department Store Chains

35 Department Store Chains

181 Department Store Concessions

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976 Stores Managed by Authorized

Retailers

Authorized Retailers

Note: Data as of September 30, 2010.

Highlights of the Distributor Model

Local ExpertiseLimited

Resources and Capital

Streamlined, Simple

DistributionNetwork

Rapidly Expanding

Sales Network and Service

Platform

Managing our Distributor and Sales Network

Industry Experience

Deep Local and Regional Sales Network

Financial Wherewithal

We Select Distributors Rigorously…

Weekly Reporting of Sales at theRetail Level

Bi-Weekly Meeting to DiscussKPIs and Market Feedback

…and Work Very Closely with Them

Dedicated Team of 20+ to Monitor,Provide Support and Guidance

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Financial Wherewithal

Vision for Growth

Rapidly Sales Network Expansion

Zero Distributor Turnover

The Results Are Apparent

Has been working with 23 out of 26 distributors

since 2006

KPIs and Market Feedback

Semi-Annual Strategy Sessions

Semi-annual Sales Fair

We generate substantially all of our revenues

through our two sales fairs

Typically held in May and October

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Attended by our distributors, department store

customers and managers of major retail outlets

Communicate key themes, selling points and

points of emphasis for the upcoming season

Usually held in conjunction with fashion shows

and regional marketing and promotional activities

All of our stores are Xiniya-branded andsell Xiniya-branded products exclusively

Gross floor area of each store typically ranging from 500 sq ft to 3,500 sq ft

Our Retail Outlets

16

to 3,500 sq ft

Store looks and layout designed by us

- Store image upgrade every 3 years

45.8

67.3

83.3

53.664.5

89.2

58.7

84.489.5

2007 2008 2009Xiniya China Lilang Septwolves

(US '000)

Key Store Metrics

� We are now on par with

our major competitors in

terms of revenue per

store

� We have also been able

to successfully extract

more revenues from

small to mid-sized

Revenue per Store Comparison

(US$ ‘000)

17

Xiniya China Lilang Septwolvessmall to mid-sized

stores, which is evident

in our increasing

revenue per square foot

of store area

Note: Septwolves revenue includes retail revenues generated by own stores.FX translation was made at the rates in effect on the respective dates.

Source: Company information.

67.6

96.4

120.1

2007 2008 2009

(US$)

Revenue per sq ft of Xiniya Stores

CAGR:33.3%

Sales and Marketing and Average Selling Price

ASP Comparison� Our products are of high

quality but are sold at a

discount to competitive

offerings

� We have historically

invested a modest amount

of capital into marketing

and promotion compared

$17.6

$20.9

$22.8

$15.5

$18.6$19.4

China Lilang Xiniya Septwolves

(US$)

NA NA NA

(1)

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Advertising Expenses as % of Revenues

2.9%2.4%

0.7% 0.6%

8.7%

6.6%

2.4%

5.1%

9.9%11.2%

9.0%8.5%

2007 2008 2009 2010 1H

Xiniya Septwolves China Lilang

and promotion compared

to our peers. We intend to

devote more resources to

continue to raise our brand

profile and awareness

2007 2008 2009

NA NA NA

(1) Septwolves does not publish transaction volume informationto compute ASP.

Note: FX translation was made at the rates in effect on the respective dates.Source: Company information.

$10.8

$34.2

$23.5

2007 2008 2009

(US$ millions)

28.9%

Financial and Operational Snapshot

Revenues

$33.3

$98.4

$67.9

2007 2008 2009

(US$ millions) CAGR:71.9%

Gross Profit Net Income

$9.2

$28.4

$17.8

2007 2008 2009

(US$ millions)34.6%

34.8%

Margin Margin

26.2%32.4%

27.6%

19

2.4

5.1

3.8

2007 2008 2009

(million)

Note: Average exchange rate for 2007, 2008 and 2009 are 1 USD = 7.5567 RMB, 1 USD = 7.0696 RMB and 1 USD = 6.8314 RMB, respectively.

Average Selling Price

105.1

131.7126.5

2007 2008 2009

(RMB) CAGR:11.9%

Total Transaction Volume # of Stores

CAGR:45.8%

728

1,181

1,008

2007 2008 2009

CAGR:27.4%

Seasonality and Predictability of Revenues

(US$ in millions)

$24.7 $25.1

$33.8$37.6

$46.7

Q3 and Q4 are the peak seasons that account for >70% of annual revenues

20

$9.2 $10.6

$24.7 $25.1

$11.8$15.2

$18.0$19.9

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2008 2009 2010Note: FX translation was made at the rates in effect on the respective dates.

Investment Highlights

Established and differentiated menswear brand

Extensive and well-managed retail network

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Favorable macro dynamics offer compelling growth

opportunities����

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Extensive and well-managed retail network

Excellent financial performance – limited capital

expenditure and operating margin of 30%+

Seasoned management team with extensive

background in the menswear industry

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Contacts

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ChristensenKimberly Minarovich

+1-917-533-3268

kminarovich@christensenir.com

or

Kathy Li

+1-480-295-1324

kli@christensenir.com

Contacts

China Xiniya Fashion Limited

Chee Jiong Ng

Chief Financial Officer

+86-0595-65323882

ngcheejiong@xiniya.com