Net Profit of Xingye Copper for 6 Months Ended 2016 Increases 73.4%
August 28 2016 - 3:31AM
Business Wire
Entering into the Online Game Industry in
the Second Half of the Year
Highlights
- Revenue increased 1.1% to RMB1,492.8
million
- Gross profit increased 66.1% to
RMB213.8 million
- Gross margin increased to 14.3% from
8.7% of the corresponding period in 2015, mainly due to the sales
volume increase of products with higher gross margin
- Profit for the period attributable to
equity shareholders of the Company increased 73.4% to RMB55.3
million
- Completed acquisition of Funnytime
Limited and entered into the online gaming industry
Financial Highlights
Six months ended 30 June RMB ‘000
2016 2015
Change Revenue
1,492,812 1,476,040 +1.1% Gross Profit
213,802 128,721 +66.1% Profit for the period attributable to
equity shareholders of the Company
55,339
31,920
73.4%
Gross profit margin
14.3% 8.7% +5.6 p.p.t. Basic earnings
per share (RMB cents)
6.82 4.56 49.6%
Xingye Copper International Group Limited (“Xingye
Copper” or the “Company” and its subsidiaries, collectively the
“Group”, HKEx: 505), announced its results for the six month ended
30 June 2016. During the period, Xingye Copper recorded revenue of
RMB1,492.8 million (6 months ended 30 June 2015: RMB1,476.0
million), and gross profit of RMB213.8 million (6 months ended 30
June 2015: RMB128.7 million).
Profit for the period attributable to equity shareholders of the
Company increased 73.4% to RMB55.3 million (6 months ended 30 June
2015: RMB31.9 million). Basic earnings per share amounted to
RMB6.82 cents (6 months ended 30 June 2015: RMB4.56 cents).
Business Review
Revenue and gross profit
The Group’s revenue for the six months ended 30 June 2016
amounted to RMB1,492.8 million. Among which, sales generated from
the sales of high precision copper plates and strips, provision of
processing services and trading of raw materials amounted to
RMB1,397.4 million, RMB70.4 million and RMB25.0 million
respectively (6 months ended 30 June 2015: RMB1,277.7 million,
RMB71.9 million and RMB126.4 million respectively); accounting for
93.6%, 4.7% and 1.7% of the total revenue respectively (6 months
ended 30 June 2015: 86.6%, 4.9% and 8.5% respectively).
The overall gross margin of the Group for the period under
review increased to 14.3% from 8.7% of the corresponding period in
2015, mainly due to the increase of sales volume of products with
higher gross margin.
Business Strategy
Adhering to the work direction for the year 2016 as “enhancing
production, increasing income, reducing cost and steady
development”, the Group grasped the opportunities of industrial
adjustment and achieved new breakthrough on the Group’s sales and
production volume with the joint efforts from the management and
employees. The Group recorded a significant increase in profit as
compared with the same period of last year. Detailed measurements
are as follows:
Increasing production: during the
Reporting Period, the new production line of the Group has been
under the stage of trial production. With the operation of advanced
equipments, the Group took the opportunities of transformation and
upgrading of the copper processing industry. Through continuous
research, development and innovation, the quality of products with
high additional value such as lead frame copper strips has been
significantly improved, and thus, the Group entered the procurement
list of some international clients. Particularly, the scale-up
manufacturing of copper strips used in the special industries led
to the increase of production volume, sales and profit of the
Group.
Income increment and cost
reduction: The Group proactively innovated techniques for
traditional products, shortened and optimized technical procedures.
The large fold high-precision production had been achieved by
small-scale of technical upgrades which resulted in reduction of
both production and operation costs. The Group also positively
promoted renovation of production method to achieve the purpose of
improving efficiency with fewer employees.
Steady development: The Group
implemented stable financial policies to control risks. The Group
adjusted development strategies during the Reporting Period, with
the steady development of the copper plates and strips processing
business, the Group will enter into the online game industry in the
second half of the year.
Prospects
Copper manufacturing business
The Group believes that under the favorable development trend in
the first half of the year, with the optimization of a series of
fundamental tasks together with the efforts of all employees, the
copper plates and strips business of the Group in the second half
of the year will again achieve stable growth and performance.
New online gaming business
The Board of the Group approved the acquisition of Funnytime
Limited during the reporting period. Supported by the “Internet
Plus” strategy proposed by the Chinese government and the growing
buying power of the general public, the Group believes that there
are opportunities in the related aspects.
The Board proposed to change the English name of the Company
from “Xingye Copper International Group Limited” to “Huan Yue
Interactive Holdings Limited”, which will better reflect the
diversification of the Group’s business and it is believed that it
can provide the Company with a more appropriate identification and
image which is in line with our business strategy. The proposed
change of Company name is subject to passing of a special
resolution by the Shareholders at the EGM in September.
The Group also believes that the newly acquired online game
business will be able to bring promising results to support the
stable growth and performance of the Group.
About Xingye Copper International Group
Limited
Xingye Copper International Group Limited (HKEx: 0505) is one of
the leading high precision producers of copper plates and strips in
the PRC. The Group mainly engaged in manufacturing and sales of
high precision copper plates and strips, trading of raw materials,
provision of processing services. It has been proactively looking
for potential acquisition opportunities in the internet and mobile
gaming industry.
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Stimulus Investor Relations Ltd.Ms. Hill Ho, +852 3159
2944hill.ho@stimulus-ir.comMs. Jessica Choi, +852 3159
2916jessica.choi@stimulus-ir.com