CHNS -3x Short China

RNS Number:6505I
China Shoto plc
29 November 2007


Press Release                                                  29 November 2007



                                China Shoto plc

                        ('China Shoto' or 'the Company')

                                 Trading Update


China Shoto (AIM:CHNS), a leading Chinese producer of industrial batteries and
power supply systems, is pleased to announce that the strong progress reported
for the six months ended 30 June 2007 has continued into the second half of the
financial year.



Revenues in the back-up battery business have continued to grow in excess of 50%
compared to the prior year.  China Shoto is particularly pleased to have won a
significant order for the Indian market, as previously announced.  Demand in the
domestic telecoms sector remains a key driver of the business.  China Shoto is a
market leader in this sector.



Revenues in the power type battery business are benefiting from the increase in
capacity reported at the interim stage, with daily production capacity
increasing from 18,000 units to 24,000 units.  The primary market for these
batteries is the domestic electric bicycle market.  Revenues in this business
are growing in excess of 40% compared to the prior year.



As stated in the interim results and in accordance with the Company's dividend
policy, the Directors will be recommending a final dividend of 4.5 pence per
share in cash for the year ending 31 December 2007.



The Company also announces that it has entered into an agreement to dispose of
its 51 per cent interest in the turbine business ("FTD").  The transfer price of
this disposal is RMB 8.0 million yuan and the dividend from this investment over
the holding period was around RMB 3.9 million yuan (the total amount paid in
acquiring the interest was RMB 10.08 million yuan). The Directors believe that,
while FTD is a solid business, management time and resources are more profitably
utilised in further expanding the rapidly growing core business.



The Directors of China Shoto are confident that the outturn for the current year
will be in line with market expectations.  Furthermore, they believe that the
Company is well positioned to continue its good growth during 2008 and beyond.



                                    - Ends -



For further information:
China Shoto plc
Cao Guifa, Executive Chairman                          Tel: +44 (0) 20 7398 7700
                                                              www.chinashoto.com


Seymour Pierce Limited
Stuart Lane / John Depasquale                          Tel: +44 (0) 20 7107 8000
jdp@seymourpierce.com                                      www.seymourpierce.com



Media enquiries:
Abchurch
Henry Harrison-Topham / Ariane Comstive                Tel: +44 (0) 20 7398 7705
ariane.comstive@abchurch-group.com                        www.abchurch-group.com








                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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