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• Following the bi-annual sales fair held in September 2011, the Company announced that orders for its spring and summer collection increased by 26% as compared to the sales fair last fall.

• In October 2011, the Company relocated its corporate headquarters from Jinjiang, Fujian Province to Xiamen, Fujian Province. The headquarters are now within the same complex as the Company's fashion design and sales & marketing facilities in Xiamen Software Park. Renovations of these facilities were completed in September 2011.

• In November 2011, the Company announced the opening of the new flagship store operated by the Company, in the city of Quanzhou, Fujian Province. The new flagship is 450 square meters, or 4,840 square feet, and complements thirteen other Xiniya stores in Quanzhou.

This new flagship is Xiniya's fifth flagship store. Other flagships include Xiniya's company-owned store in Jinjiang, Fujian Province, where its corporate headquarters were located before relocation to Xiamen in October 2011. In July 2011, Xiniya's distributors opened three flagship stores, in Zun Yi, Guizhou Province, in Harbin, Heilongjiang Province and in Chengdu, Sichuan Province.

Guidance
• For the fourth quarter of 2011, revenue in RMB is expected to increase by 25%-30%, and gross margin is expected to be in the range of 34%-35%.
• Earnings per ADS in the fourth quarter of 2011 are expected to be in the range of $0.21 -$0.25, with 58 million ADSs outstanding.
• Following a successful bi-annual sales fair held in April 2011, the Company reiterates its guidance for the full year of 2011. For the full year of 2011, revenue in RMB is expected to increase by 24%-29%, and gross margin is expected to be in the range of 34%-35%.
• Earnings per ADS for the full year of 2011 are expected to be in the range of $0.58 - $0.63.
• As previously reported, Xiniya plans to increase the total number of retail outlets managed or authorized by its distributors by approximately 180 to 220 in 2011.

Mr. Qiming Xu, Chairman and Chief Executive Officer, commented, "We are pleased to report another strong quarter and we expect our upward sales trend to continue for the remainder of the year. Our additional advertising spending on CCTV-2, CCTV-5 and CCTV-12 has continued to strengthen our brand equity.

The three new flagship stores that were opened in July required significant investment by our distributors, which demonstrated their high level of confidence in the future of the Xiniya brand. Our September 2011 sales fair was very well-received by our distributors and authorized retailers as evidenced by a 26% increase in orders. I am very optimistic about Xiniya's business momentum."

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China Xiniya Fashion Limited

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