Agritrade Resources Limited
Agritrade Resources Announces Interim Results for the Six Months Ended 30 September 2015 – Achieves Steady Operations with Growth in Revenue and Gross Profit, Significant Increase in Contribution from Shipping Business, Floating Storage Service Sector Initially Contributes Revenue and Profit to the Group
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Agritrade Resources Announces Interim Results Financial Highlight
(25 November 2015) Agritrade Resources Limited (“Agritrade Resources” or the “Company”, and its subsidiaries, the “Group”, HKSE Stock Code: 1131) is pleased to announce the unaudited condensed consolidated interim results for the six months ended 30 September 2015 (the “Period”). For the Review Period, the Group recorded a turnover of approximately HK$598 million, representing a Y-o-Y growth of approximately 3.7% as compared to HK$576 million in prior year. Gross profit also increased from HK$156 million to approximately HK$167 million. The gross profit margin of the Group was maintained at similar level as last year at 27.9% (2014: 27.1%). The increase in the turnover and gross profit is mainly attributable to the significant increase in contribution from the Group’s shipping business during the Review Period, particularly the VLCC operation which has commenced its operation since early 2015. The consolidated profit attributable to owners of the Company increased by 3.6% to approximately HK$81.9 million as compared to the corresponding period in 2014. Mining Business As a result of the increase in production capacity, the Group’s mining segment has managed to record a sustainable turnover of approximately HK$518 million and a profit of HK$79.9 million for the Review Period despite the slumping coal price, representing an approximate decrease of 7.4% and 31.6% respectively as compared to the same period in 2014. Shipping Business During the Review Period, the floating storage service sector initially contributed HK$49.7 million of Looking forward, Mr. Ng Xinwei, the Executive Director and CEO of Agritrade Resources, said, “Coal demand from China and India keeps increasing as they have opened many new coal-fired power plants to supply electricity to their immense populations. The strategic geographical location of the SEM coal mine positions it towards the giant emerging markets like China and India. Moreover, with rising global demand for lower-rank coal and power plants seeking to control operating costs in view of escalating energy prices, SEM is well poised to capture this growth upside with its energy-efficient, cleaner burning coal in an environmentally responsible manner. The Group remains optimistic about the outlook of the SEM coal mine and believes the SEM coal mine will continue to contribute growing profit and cashflows to the Group in the future.” “Looking ahead for our shipping business, energy shipments and the demand of oil storage are expected to surge in the region over the next few years due to the boom of Southeast Asia region and increase in regional energy usage. The Group will closely monitor the market development of this sector and seek the best opportunities for any further expansion of the shipping segment through acquisition of new vessels and chartering of vessels in the Southeast Asia region to meet the growing market need in the region. The Group strongly believes that the floating storage business for petrochemical products will have a promising prospect for the coming years and will promote the long term diversified growth of the Group in the future.” “We have made great progress in market expansion during the Review Period. In view of the strong market potential in China, the Company intends to diversify and further expand its business into this profitable and growing market by setting up a new China Division in April 2015. Looking forward, we believe in the steady growth in our business through capacity enhancement, market expansion, business diversification and mergers and acquisitions with the view to bringing generous rewards for our shareholders.” -END- About Agritrade Resources Limited (HKSE Stock Code: 1131) Company website: www.agritraderesources.com Issued by Financial PR (HK) Limited For further information, please contact:
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