TIDMZBO
RNS Number : 6664I
Zibao Metals Recycling Holdings PLC
10 December 2015
10 December 2015
Zibao Metals Recycling Holdings Plc
("Zibao" or the "Company")
Half Year Results
Zibao 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 GBP1.00 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."
For further information please contact:
Zibao Metals Recycling Holdings Tel: +852 2769
PLC 7662
Wenjie "Joe" Zhou, Chairman www.zibaometals.com
Jianfeng "Eddy" Li, Chief Executive
Officer
Chor Wei "Alan" Ong, Finance
Director
ZAI Corporate Finance Limited Tel: +44 (0)20
(Nominated Adviser and Broker) 7060 2220
Ray Zimmerman/Tim Cofman/ Songdi www.zaicf.com
Lin
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 Statement
We are pleased to report the Company's interim results for the
six months ended 30 September 2015,
Results
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.
Suppliers
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.
Customers
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.
Outlook
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 2015
Consolidated Statement of Comprehensive Income
6 months 6 months
to 30 to 30
September September Year to
2015 2014 31 March
Notes 2015
HKD'000 HKD'000 HKD'000
Unaudited Unaudited 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)
-------------- -------------- --------------
Profit and total comprehensive
income for the period 189 4,391 7,743
Profit and total comprehensive
income for the year
attributable to the
owners of the Company 189 4,391 7,743
Earnings per share 5 HKD HKD HKD
Basic 0.002 0.049 0.082
Diluted 0.002 0.048 0.080
Consolidated Statement of Financial Position
Notes As at 30 September 2015 As at 30 September 2014 As at 31 March 2015
HKD'000 HKD'000 HKD'000
Unaudited Unaudited Audited
Assets
Non-Current Assets
Property, plant and equipment 44,563 115 45,448
Intangible assets 1,772 - 1,772
-------------- -------------- --------------
46,335 115 47,220
-------------- -------------- --------------
Current Assets
Inventories 18,355 23,805 17,233
Trade receivables 9,099 29,900 14,774
Taxes recoverable 9,107 - -
Prepayments, deposits and other
receivables 4,864 8,497 22,905
Cash and cash equivalents 7 3,077 1,938 1,104
-------------- -------------- --------------
44,502 64,140 56,016
-------------- -------------- --------------
Total Assets 90,837 64,255 103,236
Equity and liabilities
Equity attributable to owners of
the company
Share capital 8 15,549 12,643 15,549
Share premium 42,167 13,821 42,167
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