Gongyou Machines Ltd.
Gongyou Machines Ltd: preliminary results FY 2007 – increaseses in Revenue and Profit
Gongyou Machines Ltd. / Preliminary Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Preliminary results in the Financial Year ending June 30th, 2007, show that Gongyou achieved an increase in revenue, pre-tax profit and net profit.In RMB Mill. 2007 2006 +/- % Revenue 202.9 192.8 5% Gross Profit 51.7 44.1 17% Profit before Tax 36.8 33.7 9% Tax 2.2 0 Net Profit 34.6 33.7 3%Revenue increased by 5%. While Gongyou enjoys a good domestic and international demand situation and full capacity utilization, the growth in sales was limited by capacity constraints and a price competition in the Chinese market. Gongyou is currently using the proceeds from placements to substantially increase its capacity. Gross Profit increased by 17%. Our gross profit margins could be strengthened in the past financial year and have reached a healthy level of 26%. We observed however factors with a dampening effect on profitability. In the domestic market in China, in spite of buoyant demand, competition is fierce and prevents margins from rising. Furthermore, raw material prices, mainly steel and copper, reached very high levels in the last financial year. Our pre-tax profit increased by 9% to RMB 36.8 Mill. Our Net Profit could still show a small increase of 3% to RMB 34.6 Mio., in spite of a significant increase in taxation. The tax holidays ended during this financial year. The cash position of the group per June 30th, 2007 was RMB 37.5 Mill and Shareholders Equity was RMB 144.1 Mill. We expect a further increase in revenue and profit in the actual financial year. While the tax rate could again slightly increase, strong demand and a higher production capacity should be important drivers of growth. The program to boost our production capacity has started in April 2007 and is currently on-going. The additional capacity has an effect on the current financial year. The international expansion is the next step in Gongyous growth strategy. Export demand, especially from Russia, ASEAN and Latin America is growing even faster, as we continuously strengthen our network of overseas distributors. The full audited financial statements will be available on our website www.gongyoumachines.com in the near future. DONG YANWEI CHAIRMAN GONGYOU MACHINES LTD. 28.09.2007 Contact: Julian Sandt sandt@orchidcapital.net 28.09.2007 Financial News transmitted by DGAP ----------------------------------------------------------------------
Aktuelle News
Aktuelle Berichte
Keine Berichte gefunden
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden