Tech Pro Technology Announces 2011 Interim Results

Date:2011-08-31     Source:yangliangyulile  Text Size:

Tech Pro Technology Development Limited ("Tech Pro Technology" or the "Group"; stock code:3823), a major manufacturer and distributor of aluminum electrolytic capacitors in the PRC, today announced its interim results for the period ended 30 June 2011 (the "period under review").

During the period under review, the Group recorded a turnover of RMB197.45 million, a decrease of 5.8% from the corresponding period of 2010. Gross profit increased 40.3% to RMB36.42 million; operating profit rose 56.5% to RMB14.28 million; profit attributable to equity holders climbed 6.5% to RMB4.51 million; basic earnings per share was RMB0.6 cent. Gross profit margin and net profit margin rose to 18.4% and 2.3% respectively. The Board of Directors did not recommend an interim dividend payment for the six months ended 30 June 2011.

Mr. Li Wing Sang, Chairman of Tech Pro Technology, said, "In the first half of 2011, the Group strived to revive its electrolytic capacitor business and raise its profitability by maintaining customer relationships and improving production efficiency. In addition, the Group continued to seek for potential investment opportunities to diversify its business and add value to its development."

The Group’s turnover from sales of aluminum electrolytic and V-chip type aluminum electrolytic capacitors amounted to RMB193.18 million, representing a 7.9% decrease from the same period in 2010. However, the setback in turnover was alleviated by a mild increase in product prices and the improvement in production efficiency. This was reflected in the increase in profit for the corresponding period.

The Group started the LED lighting business subsequent to its acquisition of a 50% equity interest in Giga World Industry Company Limited. During the period under review, the Group recorded revenue of RMB4.28 million and an operating loss of RMB1.04 million. As the new business is undergoing a transitional development period, the Group is confident that the segment will grow and create value for the Group afterwards.

In July 2011, the Group acquired 100% and 60% equity interest in Shine Link Technology Limited and Kings Honor Technology Limited respectively. The two acquisitions are expected to further supplement the Group’s LED business and enhance its competitiveness, which the Group believes will expand its income source from the LED business.

Looking ahead, Mr. Li said, "We are optimistic about our business outlook. The Group will grasp future opportunities and develop new businesses for diversification on our existing foundation. As the demand for LED products is growing, the Group holds a positive outlook for the LED industry and related products, and has acquired several plants for the manufacturing and installation of LED lighting products. After these acquisitions in the LED segment in 2011, the Group expects the LED business to become its major income source. We will continue to keep our eyes wide open for every opportunity that can create value for the Group and strive to generate better rewards for shareholders."


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