Company doubles operating profit growth
Plans to expand production capacity and product range to leverage opportunities in China's beverage and packaging market
ZHUHAI, March 15 /PRNewswire-Asia/ --
Performance Highlights
2009 (RMB) 2008 (RMB) YoY Change(%)
Total Revenue 2,779,886,529.00 3,053,482,790.23 -8.96%
Operating Profit 283,926,228.01 121,717,253.00 +133.27%
Gross Profit 257,902,363.39 125,036,277.29 +106.26%
Net Profit Attributable
to Shareholders 114,577,978.10 46,315,598.94 +147.39%
Earnings Per Share 0.17 0.07 +147.39%
Dividend Per Share 0.08 0.03 +166.67%
China's leading beverage packaging and PET bottling company, Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu"; SZSE stock code: SZ000659), today announces its annual results for the year ended 31 December 2009.
In 2009, Zhuhai Zhongfu's sales volume achieved steady growth of 23% as a result of the sustainable growth momentum of China's beverage packaging industry, and the sales volume growth posted a positive impact on the profit growth. However, due to lower material cost which reduced both unit selling price and cost, the selling price was lowered in 2009 and hence the total turnover saw a 8.96% decrease to approximately RMB 2.78 billion.
During the year, the Company strengthened its capital flow management via effective cost-control initiatives and cash management, producing in a 29.35% decrease in financing expenses. As a result, profits saw significant improvements compared to 2008. Gross profit increased 106.26% to approximately RMB 257.90 million, net profit attributable to shareholders increased 147.39% to approximately RMB 114.58 million.
During the year, management conducted a massive review of all production facilities, and the disposal of dated facilities resulted in a provision of the fixed assets at a non-operating expense. Excluding the impact of this arrangement and other non-recurring gains and losses, net profit attributable to shareholders after deducting non-recurring gains and losses surged 208.17% to approximately RMB 138.15 million.
Mr. Gary Guernier, Chairman of Zhuhai Zhongfu, said, "In 2009 the Chinese government continued to promote economic development by expanding domestic consumption amidst the challenging environment. For carbonated drinks alone, China experienced promising growth in 2009. At the same time, the Board of Directors and senior executives introduced systematic management mechanisms, worked to optimize the Company's corporate culture, strengthened its strategic business relationships with key customers via improved customer relationship management. Our employees' efforts to make these initiatives successful resulted in the Company's highly rewarding results for the year. Moving forward, we continue to have full confidence in China's beverage and packaging market. We also remain committed to stringent financial control regarding our bank borrowings and cash flow so as to facilitate the Company's development."
Zhuhai Zhongfu is regarded as the leader in China's beverage and non-beverage packaging industry, providing safe and environmentally friendly beverage and non-beverage products. Its product quality, R&D, cost control, customer service and employee training has also been well received in the industry. Coca-Cola, Pepsi and Uni-President are the major customers.
The Company expects demand for PET packaging to continue growing based upon the favorable economic forecast for the Mainland. As one of the most scalable manufacturers in the PET industry, Zhuhai Zhongfu plans to invest RMB 650 million, which is equivalent to the triple of 2009 level, in expanding its production capacity. The Company anticipates this will help enhance its productivity and efficiency to meet the exponential market demand in the beverage and packaging industry, consolidate its competitive strengths and leadership position.
Mr. Guernier concluded, "Looking ahead, we are committed to measures that will facilitate our long-term growth, for example growing our capacity as well as our product range. We are confident that this will help us and our clients capture opportunities arising from the booming Mainland economy, thriving domestic consumption and the promising growth of China's beverage and packaging industry."
About Zhuhai Zhongfu Enterprise Holdings Limited
Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu"; stock code: SZ000659) was established in 1982. It is principally engaged in the production and marketing of PET bottling, PVC and OPP labeling, and it is also engaged in drink refilling. Zhuhai Zhongfu is one of the largest PET bottle manufacturers in China, and the first company supplying PET bottles to Coca Cola in China. The Company has over 80 production facilities and an annual production capacity of over 5.5 billion. Its products include PET bottles for carbonated soft drinks, drinking water and beer. It received various honors and awards at the national and provincial level. The Company was listed on the Shenzhen Stock Exchange (Main Board) in 1996, the first entity in China's beverage packaging industry to be listed. For more details, please visit the Company's website: http://www.zhongfu.com.cn .
For inquiries, please contact:
GolinHarris
Gloria Chiu
Tel: +852-2501-7970
Email: gloria.chiu@golinharris.com
Madison Wai
Tel: +852-2501-7903 / +852-9306-1632
Email: madison.wai@golinharris.com
