Aluminium Alloy Division's revenue rises 5.0% to RMB248.3 million
SINGAPORE and HONG KONG, Nov. 14, 2011 /PRNewswire-Asia/ --
Financial Highlights
| (RMB 'mil) | 3Q2011 | 3Q2010 | Change % | 9M2011 | 9M2010 | Change % |
| Revenue | 259.3 | 248.0 | 4.6 | 869.7 | 705.5 | 23.3 |
| Gross profit | 86.9 | 88.6 | (2.0) | 296.8 | 237.3 | 25.1 |
| Profit before tax | 40.4 | 80.2 | (49.6) | 205.8 | 204.0 | 0.9 |
| Profit attributable to equity holders | 27.4 | 68.0 | (59.8) | 150.7 | 170.8 | (11.7) |
Midas Holdings Limited (麦达斯控股有限公司) ("Midas" or the "Company", together with its subsidiaries, the "Group"; SGX-ST stock code: 5EN; SEHK stock code: 1021) today announced its financial results for the three months ("3Q2011") and nine months ("9M2011") ended September 30, 2011.
Group revenue rose 4.6% from RMB248.0 million in the three months ended September 30, 2010 ("3Q2010") to RMB259.3 million in 3Q2011. The Group's Aluminium Alloy Division recorded a 5.0% increase in its 3Q2011 revenue to RMB248.3 million, which accounted for approximately 95.8% of total revenue.
The Transport Industry remains the largest revenue contributor to the Group's Aluminium Alloy Division, accounting for 80.5% of the division's revenue in 3Q2011. The "Others" segment, which included mainly the supply of aluminium alloy rods and other specialized profiles for industrial machinery, contributed 19.3% of revenue to the Aluminium Alloy Division. Revenue contribution from the Power Industry accounted for the remaining 0.2% of revenue.
The Group's overall gross profit margin declined from 35.7% in 3Q2010 to 33.5% in 3Q2011, mainly due to an increase in production cost.
Selling and distribution expenses increased by approximately RMB3.6 million in 3Q2011, driven mainly by an increase in staff costs and higher transportation costs as compared with 3Q2010.
Administrative expenses increased by about RMB5.3 million in 3Q2011, mainly due to higher payroll costs arising from an increase in headcount to cater to the Group's expansion plans, higher depreciation as well as increases in travelling and property taxes.
Finance costs comprised interest for bank borrowings, bank charges and financing costs relating to discounted notes receivables. Finance costs increase mainly due to more bank borrowings, higher interest rates and lesser interest on bank borrowings being capitalised. Approximately RMB2.7 million (3Q2010: RMB8.6 million) of the interest on bank borrowings that are used to finance the construction of property, plant and equipment for our new production lines were capitalised.
The Group's share of loss from its associated company Nanjing SR Puzhen Rail Transport Co., Ltd (南京南车浦镇城轨车辆有限责任公司) ("NPRT") amounted to approximately RMB3.6 million in 3Q2011. This was largely due to fewer train cars delivered to its customers during the period under review.
As at September 30, 2011, the Group remained in a healthy financial position with cash and cash equivalents of RMB851.9 million.
Outlook
In 2011, the PRC railway industry has been affected by several incidents. These incidents have dampened the near-term outlook of the PRC railway industry and affected the Group's operating environment. Revenue generated from PRC railway industry contributes approximately 70 to 80 percent of the Group's total revenue. Therefore, the Group is affected by macro factors and government policies, such as changes in the Chinese government infrastructure spending and personnel changes, which are beyond its control.
Nevertheless, the railway network development in China remains an integral component of the country's economic growth strategy. Recent media reports highlighted the Chinese government's resolve to continue to provide support to the Ministry of Railways ("MOR") and implement policies to lower the MOR's financing costs. Major listed entities related to the PRC railway industry are also raising funds from the capital markets.
Mr Patrick Chew (周华光), CEO of Midas, said, "Going forward, we will focus on improving our cost structure and enhancing our operational efficiency to meet the challenges posed by the challenging operating environment ahead. We remain optimistic of the medium to long term development of the PRC railway industry. We will continue to monitor the situation and work closely with our partners."
About Midas Holdings Limited
Founded in 2000, Midas is today the leading manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector in the PRC. Over the years, Midas has built an established track record in supplying to the PRC passenger rail transportation sector, which includes participation in landmark contracts such as trains for the Beijing-Tianjin High Speed Train Project, and inter-city high speed trains for the CRH3-380 Project. Midas' customers include domestic PRC licensed train manufacturers from China South Locomotive & Rolling Stock Corporation Limited (中国南车股份有限公司) ("CSR") and China CNR Corporation Limited (中国北车股份有限公司) ("CNR"), as well as international customers such as Alstom Transport ("Alstom"), Siemens AG ("Siemens") and Bombardier Transportation.
Midas has a strategic 32.5% stake investment in Nanjing SR Puzhen Rail Transport Co., Ltd (南京南车浦镇城轨车辆有限责任公司) ("NPRT"), an associate company engaged in the development, manufacturing and sale of metro trains, bogies and their related parts. NPRT is one of the four Licensed Metro Manufacturers licensed to undertake metro train projects on a nationwide basis in the PRC.
In recognition of its consistent growth and profitability, Midas is one of only six companies, and the only aluminium alloy extrusion products manufacturer, in Asia to be included in Forbes Asia's "Best Under A Billion" list for four consecutive years from 2006 to 2009. The Company was also awarded the "Best Investor Relations Award (Gold)" at the Singapore Corporate Awards 2010 in the "S$300 million to less than S$1 billion market capitalisation" category. As testament to its strong brand name and reputation in the PRC, Midas was conferred the prestigious "China Well-Known Trademark" ("中国驰名商标") by the Trademark Office of the State Administration for Industry & Commerce of the PRC ("中国国家工商行政管理总局商标局") ("SAIC") in 2011.
Midas has a primary listing on the Mainboard of the Singapore Exchange Securities Trading Limited and a secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited.
