HK WUSEJIE GROUP : HK WUSEJIE : 2010 yearly results

Revenue: +47.5%

Net income: +11.3%

As per IFRS	2009** in RMB thousands	2010** in RMB thousands	2009*** in € thousands	2010*** in € thousands	Change
Revenue	51,608	71,824	5,421	7,995	+ 47.5 %
Gross margin As a % of revenue	17,663 34.2 %	27,347 38.1 %	1,855 34.2 %	3,044 38.1 %	+ 52.1%
EBIT Operating margin	13,601 26.35 %	16,733 23.3 %	1,429 26.35 %	1,862 23.3 %	+ 23 %
Tax	(2,501)	(4,380)	(263)	(487)	+ 85.2 %
Net income Net margin	11,100 21.5 %	12,353 17.2 %	1,166 21.5 %	1,395 17.2 %	+11.3 %

**Pre-audit figures ***2009 exchange rate: € 1 = RMB 9.5199 2010 exchange rate: € 1 = RMB 8.9836 Shenzhen-based Chinese group HK Wusejie, which specializes in decorative craft pieces in carved and/or painted wood, enjoyed another year of strong growth in 2010 as it capitalized on the boom on China’s property market. Over the full year, HK Wusejie virtually doubled its revenues to RMB 71,824,000 (€ 7,995,000) from RMB 51,608,000 (€ 5,421,000) in 2009. Activity was propelled by the sale of new types of products (soft furnishings and cushions, small wooden furniture, tableware, decorative iron, etc.) which accounted for 25% of total sales. With the opening of 21 new sales outlets, the group's gross margin increased 52% in 2010 to stand at RMB 27,347,000 (€ 3,044,000), namely 38.1% of revenue versus 34.2% one year earlier. Direct sales now account for 27.06% of revenue compared with 20.5% in 2009. Operating income grew 23% to RMB 16,733,000 (€ 1,862,000) for an operating margin of 23.3%. The dip in operating margin is explained by the increase in overheads that has gone hand-in-hand with the company’s growth, and the increase in the cost of sales as a result of the new openings over the year. Lastly, net income grew 11.3% to RMB 12,353,000 (€ 1,395,000) to generate a net margin of 17.2%. A very healthy financial structure At December 31, 2010, HK Wusejie's equity amounted to RMB 30,042,000 (€ 3,411,000) after a figure of RMB 23,698,000 (€ 2,418,000) one year earlier. The group’s net cash position stood at RMB 9,723,000 (€ 992,000). Outlook HK Wusejie fully intends to pursue its commercial development in China and around the world in 2011 but also remains prudent as to its forecasts for the year. August will see Shenzhen play host to the World University Games and preparations for this major sporting event have already disrupted activity in the region’s factories which will necessarily impact on the group’s performance. As things stand, HK Wusejie expects its results for the year to be close to those posted in 2009. ISIN code: HK0000061074 – Mnemonic code: MLHKW About HK Wusejie Founded in 2003, Chinese group HK Wusejie designs, produces and sells decorative craft pieces in carved and/or painted wood (vases, wall panels and other decorative objects). Today, the company is a key player on China’s very recent and very buoyant wooden interior decorating market. Drawing on a team of experienced designers, the group has a unique craft expertise, uses sophisticated and complex techniques and has filed 40 patents to date. At present, it mostly sells its products in China through 400 distributor clients. HK Wusejie group has a flawless track record of strong growth and high margins. Since 2006, group revenues have grown by over thirteen times. www.hk-wsj.com
HK Wusejie	Atout Capital	Actus Finance
[e-mail]	Mélanie Bonanno	Clémence Fugain
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