Chiho-Tiande Announces 2010 Annual Results Revenue Surges 153.6% to HK$5.9 Billion

Establishing position in fast-growing metal recycling industry

Striving to increase procurement and processing capacity

HONG KONG, March 14, 2011 /PRNewswire-Asia/ --

Chiho-Tiande Group Limited ("Chiho-Tiande" or the "Company", together with its subsidiaries, the "Group", stock code: 976), the largest importer of mixed metal scrap in the PRC, announced its annual results for the year ended 31 December 2010 (the "year under review").

With increasing global demand for limited natural mineral resources, the Group sufficiently captured opportunities and aggressively expanded its business to achieve an encouraging performance. Revenue increased 153.6% to HK$5.9 billion. The increase was attributable to the rise in sales volume as well as average selling prices of its recycled metal products and foundry products. Without taking into account an one-off gain from write back of provisions for inventory recorded in 2009, gross profit surged 131.9% to approximately HK$569.9 million with a gross profit margin of 9.6%, while net profit rose 87.9% to approximately HK$352.6 million representing a net profit margin of 5.9%. Basic earnings per share were HK$0.41. The board of directors proposed a dividend payout of HK$0.09 per share for the year ended 31 December 2010.

During the year under review, revenue from the Group's metal recycling business soared by 165.3% to approximately HK$4.9 billion; while that from the foundry business increased 125.4% to approximately HK$835.3 million; and that from the wholesale business rose 54.0% to approximately HK$175.8 million. Given the growing demand for recycled metal products, the Group continued to increase its procurement volume through its well-developed overseas procurement network. The group sold in aggregate over 518,600 tonnes of processed products under its three core business segments. This represents an increase of 84.6% when compared over 280,900 tonnes in 2009.

Mr. Fang Ankong, Executive Chairman and Chief Executive Officer of Chiho-Tiande, said, "When natural resources are getting scarce, scrap metal recycling is regarded as a key solution to future demands and environmental problems. To take advantage of the increasing demand for recycled products, the Company continued to put emphasis on securing supply of raw materials from proven sources of scrap metal through its well established overseas procurement network. We believe our strategies will allow us to build a solid foundation and become a leading player in the fast-growing scrap metal recycling sector."

In order to increase the variety of scrap materials and extend coverage, the Group decided to expand its processing capability by establishing two new joint ventures in Shanghai and Hong Kong during the fourth quarter of 2010. The Shanghai joint venture mainly focuses on steel scrap processing, and the Group expects the processing capacity of the Shanghai joint venture to reach 300,000 tonnes in the coming year. As for the Hong Kong joint venture, we are looking to establish a visible processing facility capable of handling various types of scrap materials, and in line with the Hong Kong Government's intention to develop a more regulated and environmentally friendly infrastructure for the recycling industry.

Furthermore, the Company announced in January 2011 its plans to sign two letters of intent for acquiring a majority stake in a Beijing company and establishing a new joint venture in Tianjin. The establishment of the Beijing joint venture provides a platform for the Group in entering the scrap vehicles handling business, together with the Tianjin joint venture, the Group is planning to expand its coverage into northern China.

With regard to future development, Mr. Fang concluded, "As global economy is gradually recovering, and the PRC government continuously supports the development of the recycling industry and includes energy saving and environmental protection as a key emerging industry in the '12^th Five-Year-Plan'. We believe the metal recycling industry in the PRC will continue to grow and will become an important source and an integral part of the metal resource supply chain in the PRC in the foreseeable future. We will continue to increase our procurement volume in line with the rapidly increasing demand and our expansion strategy for scrap raw material in the PRC and we are actively seeking potential merger and acquisition opportunities. We strongly believe our current position and strategy will allow us to benefit from the recently announced favorable policies, and to establish a leading position in the fast-growing metal recycling industry so as to generate attractive returns for our investors."

About Chiho-Tiande GroupLimited

Listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 July 2010, Chiho-Tiande is a mixed metal scrap recycler in China and the largest importer of mixed metal scrap in China in terms of total import volume and actual import volume. According to China Customs data, the Group was also the largest importer of copper-based scrap in China in 2009. Its business operations are broadly classified into three categories: metal recycling business, foundry business and wholesale business. The Group specializes in the recycling and processing of imported mixed metal scrap. Chiho-Tiande possesses a well established procurement network for mixed metal scrap, and operating through its four sizable processing facilities locating in Taizhou, Ningbo, Shanghai and Hong Kong, with an annual total processing capacity of over 600,000 tonnes of mixed metals.

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