PHIMEDIX PLC 10 December 2015
("Zibao" or the "Company")
Half Year ResultsZibao Metals Recycling Holdings Plc (AIM: ZBO), a Hong Kong based, recyclable metal trader is pleased to announce its half year results for the six months ended 30 September 2015.
The Group figures are presented in Hong Kong Dollars (HKD 11.63 to £1.00 on 8 December 2015).
Highlights
Revenue reduced by 23% to HKD 161 million from HKD 208.3 million
PBT decreased 97% to HKD 0.2 million (2014: HKD 5.9 million before admission costs) mainly due to lower gross profit margins
Profit from operations decreased 95% to HKD 0.2 million (2014: HKD 4.4 million)
Cash position at period end at HKD 3.1 million (2014: HKD 1.9 million)
Joe Zhou, Zibao Chairman commented: "The market condition the PRC and Europe continues to be challenging. The Group will continue to control its costs and manage the credit risks prudently. The Group believes that it will be well positioned to benefit from a future recovery."
Zibao Metals Recycling Holdings PLC
Wenjie "Joe" Zhou, Chairman
Jianfeng "Eddy" Li, Chief Executive Officer Chor Wei "Alan" Ong, Finance Director
Tel: +852 2769 7662
www.zibaometals.com
ZAI Corporate Finance Limited (Nominated Adviser and Broker)
Ray Zimmerman/Tim Cofman/ Songdi Lin
Tel: +44 (0)20 7060 2220
www.zaicf.com
About Zibao Metals Recycling Holdings PLC
Established in its current form in 2009, and incorporated as a UK registered company in 2014, Zibao is a trader in non-ferrous metals - principally aluminium and copper. It imports these from a variety of international sources and resells them into the People's Republic of China to operators who process them into a 'clean' form for sale to foundries.
The Company was formed by Wenjie 'Joe' Zhou, whose family has had interests in recyclable metals for nearly twenty years. During this period he has established good relationships with a range of overseas suppliers and developed an in-depth knowledge of the PRC rules and regulations for the metals recycling industry.
Metals recycling is a multi-million pounds global industry and China is the world's leading importer of copper and aluminium and needs recycling to supplement its growing demand.
Chairman's StatementWe are pleased to report the Company's interim results for the six months ended 30 September 2015,
The Group's turnover was HKD 161 million, a decline of approximately 23% mainly due to decline in sales to existing customers. Profit before tax declined in the period by 97% to HKD 0.2 million mainly due to lower margins from sale to new customers with shorter credit periods., During the six months ended 30 September 2015, as a result of market uncertainty, the Group diversified away from its previous customer base and tightened its credit policy.
Two new suppliers have been secured in the first half of the year, which strengthens the overall supplier panel to over 57 members. Each supplier is vetted by the Group before becoming an approved trading partner. As a result of this process, the Group cultivates strong and long-term relationships with its suppliers, reducing the risk of lower product quality and promoting integrity and reliability throughout our supply chain.
New potential customers were approached in the first half of the year. During the period, the Group has seen customers struggle with their levels of working capital due to Chinese banks tightening their credit policies and the directors welcome the recently announced drop in interest rates, which they believe should have a positive impact on demand. During the six months ended 30 September 2015, the Group diversified away from its previous customer base due to the Group's tightening credit policy due to market uncertainty.
The market condition the PRC and Europe continues to be challenging. The Group will continue to control its costs and manage the credit risks prudently. The Group believes that it will be well positioned to benefit from a future recovery.
I would like to take this opportunity to thank our long standing customers and suppliers as well as our employees for their loyalty and hard work.
Joe Zhou Chairman 10 December 2015Zibao Metals Recycling Holdings Plc Year ended 2015 | |||
Consolidated Statement of Comprehensive Income | |||
6 months to 30 September | 6 months to 30 September | Year to 31 | |
Notes | 2015 HKD'000 Unaudited | 2014 HKD'000 Unaudited | March 2015 HKD'000 Audited |
Continuing operations | |||
Revenue 3 | 160,989 | 208,280 | 403,798 |
Cost of sales | (156,806) | (197,862) | (386,189) |
Gross profit | ─────── 4,183 | ─────── 10,418 | ─────── 17,609 |
Other revenues | 2 | - | 1,031 |
Selling and distribution expenses | (265) | (454) | (692) |
Administrative expenses | (3,731) | (4,460) | (8,524) |
- Admission expenses | - | (581) | (581) |
- Other administrative expenses | (3,731) | (3,879) | (7,943) |
Operating profit | ─────── 189 | ─────── 5,504 | ─────── 9,424 |
Finance cost | - | (150) | (250) |
Profit before tax | ─────── 189 | ─────── 5,354 | ─────── 9,174 |
Income tax expense | - | (963) | (1,431) |
─────── | ─────── | ─────── |
the period 189 4,391 7,743
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Profit and total comprehensive income for the year attributable to the owners of the Company | 189 | 4,391 | 7,743 |
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Earnings per share Basic | 5 | HKD 0.002 | HKD 0.049 | HKD 0.082 |
Diluted | 0.002 | 0.048 | 0.080 | |
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