Gongyou Machines Ltd.
Gongyou Machines Ltd.: Profit of more than RMB 13 million in a difficult economic environment
Gongyou Machines Ltd. / Final 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. ---------------------------------------------------------------------- Gongyou Machines Ltd. achieved a still respectable performance in the financial year 2008, in spite of an increasingly difficult economic environment. Our Sales Turnover decreased by 11% to RMB 179.6 million, mainly due to falling demand in the domestic markets in China. Our main client base is Chinese furniture manufacturers. Many of them have slowed down their own expansion, because furniture exports to the USA decrease. Machine exports to our main overseas markets, like Russia, Latin America and ASEAN, are still rising. The demand, especially for our recently developed range of high-end machines, remains healthy. Our Gross Profit fell by 33% to RMB 34.6 million. In addition to the falling sales, spiraling costs for our main raw materials, steel and copper, have affected our margin. Also, labor costs were growing faster than in previous years. However, recent trends indicate some improvement regarding metal prices. Selling, distribution and administration costs rose in total by about 20%, in line with increased costs for salaries and services in China. The Net Profit fell by 61.6% to RMB 13.3 million. Earnings per share reach 14.2 Eurocents. Our balance sheet continues to be strong. Shareholders equity increased by 9% to RMB 157.5 million. We are free of bank liabilities, and our current assets exceed substantially our current liabilities. Our book value reaches EUR 1,68 per share. Contact: Julian Sandt, Director sandt@orchidcapital.net 08.10.2008 Financial News transmitted by DGAP ----------------------------------------------------------------------
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