SINGAPORE and HONG KONG, Feb. 29, 2012 /PRNewswire-Asia/ --
Financial Highlights
| (RMB' mil) | FY2011 | FY2010 | Change % |
| Revenue | 1,080.7 | 1,029.9 | 4.9 |
| Gross profit | 362.0 | 345.0 | 4.9 |
| Profit before tax | 225.5 | 296.6 | (24.0) |
| Profit attributable to equity holders | 187.4 | 240.8 | (22.2) |
Midas Holdings Limited ("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 year ended December 31, 2011 ("FY2011").
Group revenue rose 4.9% to RMB1.08 billion, as compared to RMB1.03 billion in the previous financial year ("FY2010"), due mainly to a 4.8% increase in contributions from the Group's Aluminium Alloy Division. The Aluminium Alloy Division recorded revenue of RMB1.04 billion, accounting for approximately 96.2% of total revenue in FY2011.
Within the Aluminium Alloy Division, the Transport Industry remains the largest contributor, accounting for 78.0% of the division's revenue in FY2011, with the Power Industry and Others segment contributing 0.8% and 21.2%, respectively.
In line with the higher revenue, the Group's gross profit rose 4.9% to RMB362.0 million in FY2011, from RMB345.0 million same period last year. For FY2011, overall gross profit margin remained stable at 33.5%, with gross profit margin at the Group's Aluminium Alloy Division recording a marginal increase to 34.2% in FY2011, from 34.1% in FY2010.
Other operating income rose 222.6% to RMB16.5 million in FY2011, from RMB5.1 million in FY2010. The significant increase was due to higher level of interest generating bank deposits for the year under review.
Selling and distribution expenses increased by approximately RMB11.1 million in FY2011, driven mainly by an increase in staff costs and higher transportation costs as compared with FY2010. Administrative expenses increased by about RMB21.4 million in FY2011 mainly due to higher payroll costs from an increase in headcount to cater to the Group's expansion plans as well as an increase in depreciation, travelling and property taxes.
Finance costs, which comprised interest for bank borrowings, bank charges and financing costs relating to discounted notes receivables, increased to RMB38.8 million in FY2011. The increase was due mainly to more bank borrowings, higher interest rates and lesser interest on bank borrowings being capitalised. Approximately RMB25.4 million (FY2010: RMB34.1 million) of the interest on bank borrowings that are used to finance the construction of property, plant and equipment for the new production lines were capitalised.
The Group's associated company, Nanjing SR Puzhen Rail Transport Co., Ltd ("NPRT"), recorded contributions of RMB8.3 million in FY2011 as compared to RMB45.9 million in FY2010. This was due mainly to fewer train cars delivered to customers in the year under review.
Against the backdrop of higher selling and distribution expenses, administrative expenses, finance costs and a drop in contributions from NPRT, which was partially offset by an RMB11.4 million increase in other operating income, the Group achieved a profit attributable to equity holders of RMB187.4 million in FY2011. This compares against RMB240.8 million in FY2010.
In appreciation to the support of its shareholders, the Group has proposed a final cash dividend of 0.5 Singapore cents per ordinary share. In total, this works out to a total dividend payout amounting to 1.0 Singapore cent per ordinary share for FY2011.
As at December 31, 2011, the Group remained in a healthy financial position with cash and cash equivalents of RMB660.8 million.
Outlook
The railway incidents in 2011 brought about a significant slowdown in the growth of the PRC railway sector in the year under review. This, together with volatile global economic conditions, had inevitably impacted the Group's operations in 2011. While the PRC railway sector has since exhibited some signs of recovery, uncertainty over the rate of recovery continues to place pressure on near-term challenging market demand.
Mr Patrick Chew, CEO of Midas, said, "We remains positive on the outlook of China's railway industry in the mid - to long-run as the development of the PRC railway network remains an integral component of the country's economic growth strategy and railway transportation is also the most efficient and affordable means of transportation in the PRC."
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 ("CSR") and China CNR Corporation Limited ("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 ("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" by the Trademark Office of the State Administration for Industry & Commerce of the PRC ("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.
