HONG KONG--(BUSINESS WIRE)--Highlights
- Revenue increased 1.1% to RMB1,492.8 million
- Gross profit increased 66.1% to RMB213.8 million
- Gross margin increased to 14.3% from 8.7% of the corresponding period in 2015, mainly due to the sales volume increase of products with higher gross margin
- Profit for the period attributable to equity shareholders of the Company increased 73.4% to RMB55.3 million
- Completed acquisition of Funnytime Limited and entered into the online gaming industry
|Six months ended 30 June|
|Profit for the period attributable to equity shareholders of the Company||
|Gross profit margin||14.3%||8.7%||+5.6 p.p.t.|
|Basic earnings per share (RMB cents)||6.82||4.56||49.6%|
Xingye Copper International Group Limited (“Xingye Copper” or the “Company” and its subsidiaries, collectively the “Group”, HKEx: 505), announced its results for the six month ended 30 June 2016. During the period, Xingye Copper recorded revenue of RMB1,492.8 million (6 months ended 30 June 2015: RMB1,476.0 million), and gross profit of RMB213.8 million (6 months ended 30 June 2015: RMB128.7 million).
Profit for the period attributable to equity shareholders of the Company increased 73.4% to RMB55.3 million (6 months ended 30 June 2015: RMB31.9 million). Basic earnings per share amounted to RMB6.82 cents (6 months ended 30 June 2015: RMB4.56 cents).
Revenue and gross profit
The Group’s revenue for the six months ended 30 June 2016 amounted to RMB1,492.8 million. Among which, sales generated from the sales of high precision copper plates and strips, provision of processing services and trading of raw materials amounted to RMB1,397.4 million, RMB70.4 million and RMB25.0 million respectively (6 months ended 30 June 2015: RMB1,277.7 million, RMB71.9 million and RMB126.4 million respectively); accounting for 93.6%, 4.7% and 1.7% of the total revenue respectively (6 months ended 30 June 2015: 86.6%, 4.9% and 8.5% respectively).
The overall gross margin of the Group for the period under review increased to 14.3% from 8.7% of the corresponding period in 2015, mainly due to the increase of sales volume of products with higher gross margin.
Adhering to the work direction for the year 2016 as “enhancing production, increasing income, reducing cost and steady development”, the Group grasped the opportunities of industrial adjustment and achieved new breakthrough on the Group’s sales and production volume with the joint efforts from the management and employees. The Group recorded a significant increase in profit as compared with the same period of last year. Detailed measurements are as follows:
Increasing production: during the Reporting Period, the new production line of the Group has been under the stage of trial production. With the operation of advanced equipments, the Group took the opportunities of transformation and upgrading of the copper processing industry. Through continuous research, development and innovation, the quality of products with high additional value such as lead frame copper strips has been significantly improved, and thus, the Group entered the procurement list of some international clients. Particularly, the scale-up manufacturing of copper strips used in the special industries led to the increase of production volume, sales and profit of the Group.
Income increment and cost reduction: The Group proactively innovated techniques for traditional products, shortened and optimized technical procedures. The large fold high-precision production had been achieved by small-scale of technical upgrades which resulted in reduction of both production and operation costs. The Group also positively promoted renovation of production method to achieve the purpose of improving efficiency with fewer employees.
Steady development: The Group implemented stable financial policies to control risks. The Group adjusted development strategies during the Reporting Period, with the steady development of the copper plates and strips processing business, the Group will enter into the online game industry in the second half of the year.
Copper manufacturing business
The Group believes that under the favorable development trend in the first half of the year, with the optimization of a series of fundamental tasks together with the efforts of all employees, the copper plates and strips business of the Group in the second half of the year will again achieve stable growth and performance.
New online gaming business
The Board of the Group approved the acquisition of Funnytime Limited during the reporting period. Supported by the “Internet Plus” strategy proposed by the Chinese government and the growing buying power of the general public, the Group believes that there are opportunities in the related aspects.
The Board proposed to change the English name of the Company from “Xingye Copper International Group Limited” to “Huan Yue Interactive Holdings Limited”, which will better reflect the diversification of the Group’s business and it is believed that it can provide the Company with a more appropriate identification and image which is in line with our business strategy. The proposed change of Company name is subject to passing of a special resolution by the Shareholders at the EGM in September.
The Group also believes that the newly acquired online game business will be able to bring promising results to support the stable growth and performance of the Group.
About Xingye Copper International Group Limited
Xingye Copper International Group Limited (HKEx: 0505) is one of the leading high precision producers of copper plates and strips in the PRC. The Group mainly engaged in manufacturing and sales of high precision copper plates and strips, trading of raw materials, provision of processing services. It has been proactively looking for potential acquisition opportunities in the internet and mobile gaming industry.