CORPORATE NEWS April 28, 2017
Decheng Technology AG: Successful fiscal year 2016
- Revenues and gross profit up as compared to the previous year
- Management and Supervisory Boards propose a dividend of EUR 0.10 per share
Cologne, April 28, 2017. Decheng Technology AG (ISIN: DE000A1YDDM9; German Securities Identification Number (WKN): A1YDDM; ticker symbol: 333), a Chinese manufacturer of polyurethane resin and additives, today announced the result for fiscal year 2016 (January 1 to December 31) at a press conference in Frankfurt.
Increase in revenues, EBIT and gross profit
Group revenues in fiscal year 2016 amounted to EUR 75.8 million, corresponding to an increase of 8.67% as compared to 2015 (EUR 69.8 million). Main sales driver were polyurethane resins for fabric coatings with sales amounting to 40.74% of total sales. The gross profit in the period under review rose to EUR 28.8 million, corresponding to an increase of 7.94% as compared to the previous year. The gross profit margin for fiscal year 2016 was 30.02%. The result from operations (EBIT) also showed an increase and rose by 4.72% to EUR 25.3 million (previous year EUR 24.1 million). The EBIT margin was 33.14%, due to higher administration costs in fiscal year 2016, mainly in connection with the IPO. Earnings after tax amounted to EUR 18.46 million, earnings per share were EUR 0.88.
Dividend of EUR 0.10 per share proposed
The Company’s Supervisory Board approved a proposition of the Management Board that a dividend of EUR 0.10 per share may be paid for fiscal year 2016. The General Meeting held in August 2017 will vote on this proposal. The proposed dividend corresponds to a dividend yield of 5%.
Speaking about the results, CEO Zhu Xiaofang said today: “We knew right from the start that the market conditions for Chinese companies in Germany are difficult. Thus, my fellow Board members and I have always focused on credibility and sustainability. In fiscal year 2016, we have been able to generate growth despite difficult market conditions due to falling commodity prices. For me, this is proof of the soundness of our business model. With the dividend proposal, we hope to convince investors to join us on our path of sustainable growth.”
The consolidated financial statements are available at dechengtechnology.com > Investor Relations > Downloads.
About Decheng Technology AG
Decheng Technology AG is occupied with the research, development and the production of polyurethane resin and additives that enhance and improve the product features of textiles and leather. The production site is located in Quangang, Fujian Province, People’s Republic of China. In fiscal year 2016, the Company achieved sales of EUR 75.8 million, an operating result of EUR 25.4 million and employed 119 persons. The shares of Decheng Technology AG are listed in the General Standard Segment of the Frankfurt Stock Exchange.
Contact:
VPC Group
Frankfurt Branch
Bleichstr. 64-66
60313 Frankfurt
Germany
+49 69 175371963
ir@dechengtechnology.com
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