TIDMQIH
RNS Number : 6954O
Qihang Equipment Company Limited
24 September 2013
Qihang Equipment Company Limited
(The "Company" or "Qihang")
Interim Results for the six months ended 30 June 2013
Qihang, based in Zhenjiang, Jiangsu Province, Eastern China, is
a fast growing machine tool manufacturer including large lathe and
milling machines capable of creating huge components of greater
than one metre in diameter and sixty tonnes in weight. The Company
is one of the few businesses which can manufacture milling machines
for processing complicated screws used in the plastic and
petrochemical industry in China.
Financial Highlights
-- Cash at period end of RMB28 million (at 31 December 2012: RMB26 million)
-- Turnover down 56% to RMB52 million (period to 30 June 2012: 118 million)
-- Gross profit for the period down by 50% to RMB14 million
(period to 30 June 2011: RMB28 million)
-- Loss from operations for the period is RMB3.2 million (period
to 30 June 201: profit of RMB1.5 million)
Chairman's Statement:
I am pleased to announce the Interim results to June 30th 2013.
The figures again make unhappy reading but mask some improvement in
the company's trading.
As can be seen from the segmental figures sale of basic
machinery was heavily down. We also hold too much stock of this
type of machinery. Steps are being taken to deal with this but it
will take some time before the effect on our balance sheet will be
seen. Sales of the larger machines have held up well and efforts
are being made to develop the export potential for this equipment.
I am glad to say the management and staff have had some success in
Russia and Turkey.
Our debt remains too large and a drain on our resources, The
Board continue to work to find a solution to this. Despite the
constraints that our debt has on the Company we have continued to
spend on new equipment to improve production.
The Board remain conscious that we need to improve the
situation. We have examined a number of options but have not yet
been able to reach a conclusion.
City Code on Takeovers and Mergers
On 15 May 2013, the Takeover Panel announced that certain
proposed changes to the City Code on Takeovers and Mergers (the
"City Code") will be implemented on 30 September 2013.
Amongst other changes, the residency test in section 3(a)(ii) of
the Introduction to the City Code will no longer apply to companies
which have their registered offices in the UK, Channel Islands or
the Isle of Man and which have their securities admitted to trading
on a multi-lateral trading facility (which includes AIM) in the UK.
This means that the Company will be subject to the City Code from
30 September 2013.
24 September 2013
Enquiries:
Qihang
Mr Yuanqing Li, CEO Tel: 0086 139 2159 4638
Mark Chapman, Chairman Tel: 0044 (0)1483 892130/ (0)7449
842717
------------------------------------ ------------------------------------
Nominated Adviser and Joint Broker Tel: 0044 (0)20 7796 8800
Northland Capital Partners Limited
William Vandyk / Matthew Johnson
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Joint Broker Tel: 0044 (0)20 7469 0930
Peterhouse Corporate Finance
Lucy Williams
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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2013
Note Six months Six months Year ended
ended ended 31 December
30 June 30 June 2012
2013 2012 Audited
Unaudited Unaudited
RMB'000 RMB'000 RMB'000
Revenue 5 51,983 117,773 151,503
Cost of sales (37,931) (89,489) (111,268)
------------ ------------ --------------
Gross profit 14,052 28,284 40,235
Other operating income 329 473 797
Distribution expenses (4,482) (9,395) (9,458)
Administrative expenses (13,141) (17,911) (33,471)
(Loss)/profit from operations (3,242) 1,451 (1,897)
Non-operating income net of expenses (7) 14 206
Profit on disposal of subsidiaries - - 5
Other gains/(losses) - 3,607 1,283
Income from subsidies - - 225
Investment income 146 531 1,091
Finance costs (7,164) (9,552) (15,940)
Loss before tax (10,267) (3,949) (15,027)
Income tax (expense)/credit 6 (39) (141) 1,006
------------ ------------ --------------
Loss for the period (10,306) (4,090) (14,021)
============ ============ ==============
Other comprehensive income - - -
Total comprehensive income for
the period (10,306) (4,090) (14,021)
============ ============ ==============
Loss attributable to
Equity holders of the company (10,306) (4,090) (14,021)
Loss per share 7
Basic and diluted (RMB) (0.09) (0.035) (0.24)
Basic and diluted (pence) (0.86) (0.35) (2.40)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
Note 30 June 30 June 31 December
2013 2012 2012
Unaudited Unaudited Audited
RMB'000 RMB'000 RMB'000
Non-current assets
Property, plant and equipment 8 193,765 188,765 192,287
Intangible assets 40,905 51,533 41,591
Deferred tax assets 1,448 3,416 1,448
----------- ----------- ------------
236,118 243,714 235,326
----------- ----------- ------------
Current assets
Inventories 98,084 128,584 97,836
Trade and other receivables 40,607 98,198 63,489
Cash and cash equivalents 27,949 61,454 26,460
----------- ----------- ------------
166,640 288,236 187,785
----------- ----------- ------------
Total assets 402,758 531,950 423,111
=========== =========== ============
Equity and reserves
Share capital 9 15,196 15,196 15,196
Share premium 86,711 86,711 86,711
Other reserves (13,635) (13,952) (13,635)
Retained earnings (7,272) 13,282 3,034
81,000 101,237 91,306
----------- ----------- ------------
Current liabilities
Bank borrowings 161,500 226,750 163,000
Income tax liabilities 1,028 1,291 1,070
Trade and other payables 105,575 149,699 114,080
----------- ----------- ------------
268,103 377,740 278,150
Non-current liabilities
Other borrowings 44,000 43,318 44,000
Deferred tax liabilities 9,655 9,655 9,655
----------- ----------- ------------
53,655 52,973 53,655
----------- ----------- ------------
Total liabilities 321,758 430,713 331,805
=========== =========== ============
Total equity and liabilities 402,758 531,950 423,111
=========== =========== ============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
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