TIDMZBO
RNS Number : 2707L
Zibao Metals Recycling Holdings PLC
21 December 2018
21 December 2018
Zibao Metals Recycling Holdings Plc
("Zibao" or "the Company" or "the Group")
Half Year Results
Zibao Metals Recycling Holdings Plc (AIM: ZBO), a Hong Kong
based, recyclable metal trader and processor is pleased to announce
its unaudited half year results for the six months ended 30
September 2018
The Group figures are presented in Hong Kong Dollars.
Highlights
-- Revenue decreased by 71% to HKD 139 million from HKD 479 million.
-- Gross profit decreased by 91% to HKD 0.3 million from HKD
3.83 million mainly due to lower revenues whilst selling and
distribution expenses have decreased marginally to HKD 29,500 from
HKD79,500.
-- Loss before tax was HKD 2.36million (2017: Profit before tax
HKD0.47million) mainly due to lower revenues and margins as a
result of the impact of new regulations which came into effect in
2018. The decrease in profit was partially offset by a reduction in
administration expenses of HKD0.5 million.
-- The closing cash position at period end was HKD 5.4 million (2017: HKD 3.13 million).
Joe Zhou, Zibao Chairman commented:
Market conditions in the PRC and Europe continue to be
challenging. New regulations restricting imports into the PRC,
introduced earlier in the year, have had a significant and negative
impact on the business. The new regulations, imposing higher
quality requirements for importation, have, in turn increased the
cost of supplies. This has made recycled metals less competitive
compared with non-recycled material which has resulted in a
significant reduction in demand in the PRC. for recycled metals
As well as exercising tight control of costs and managing the
credit risks prudently we continue to seek competitively priced
supplies which meet the new requirements. Despite the uncertainties
arising from pressures globally, added to local factors in the PRC,
we believe the Group is well positioned to benefit from a future
recovery and from the re-establishment of a steady and compliant
supply source. The flexibility shown by the Group in adapting to
changing circumstances is encouraging and we continue to explore
opportunities to increase shareholder value.
The Board continues to work very hard to restructure our
existing business given the regulatory changes in the PRC. Given
the significant fall in revenue in the first half of the year, we
are very conscious of the need to preserve our cash resources as we
try to find alternative sources of supply and revenue to comply
with the new PRC regulations or additional business lines to
diversify our operations. We continue to explore both trading and
corporate solutions, which may include seeking additional funding,
to the issues that we have encountered since April and will keep
shareholders informed as to progress.
For further information please contact:
Zibao Metals Recycling Holdings PLC Tel: +852 2769 7662
Wenjie "Joe" Zhou, Chairman www.zibaometals.com
Jianfeng "Eddy" Li, Chief Executive Officer
Chor Wei "Alan" Ong, Finance Director
SPARK Advisory Partners Limited (Nominated
Adviser) +44 203 368 3551
Mark Brady/Neil Baldwin
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 and processor in
non-ferrous metals - principally aluminium and copper. It imports
these from a variety of international sources or indirectly from
importers based in the People's Republic of China ('PRC') and
resells them into the PRC to (a) operators who process them into a
'clean' form for sale to foundries (b) Customers who buy them in
clean form. In addition, Zibao also operates a non-ferrous metal
processing and stockholding yard based in Nanhai. The purchases by
the yard are from importers based in the PRC and the customers are
based in PRC.
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, importers based in the PRC 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 unaudited interim results
for the six months ended 30 September 2018.
Results
The Group's turnover was HKD 139 million, a decrease of
approximately 71% on the corresponding period last year, mainly due
to impact of new regulations in the PRC restricting importation of
scrap materials. Loss before tax increased during the period to
HKD2.36 million reflecting lower gross profit margins due to
competition and lower revenues.
Suppliers
Three new suppliers have been secured in the first half of the
year, adding to the overall supplier base. However, the current
supplier base, together with the new suppliers secured, cannot meet
the quality and quantity of materials required to meet customer
demand.
Customers
Two new customers were added in the first half of the year and
at the same time the Group also saw existing customers increase
their order volumes. However, due to tighter restrictions on the
quality of imports, the amount of materials available to be sold
has been significantly reduced.
Outlook
Market conditions in the PRC and Europe continue to be
challenging. New regulations restricting imports into the PRC,
introduced earlier in the year, have had a significant and negative
impact on the business. The new regulations, imposing higher
quality requirements for importation, have, in turn increased the
cost of supplies. This has made recycled metals less competitive
compared with non-recycled material which has resulted in a
significant reduction in demand in the PRC. for recycled metals
As well as exercising tight control of costs and managing the
credit risks prudently we continue to seek competitively priced
supplies which meet the new requirements. Despite the uncertainties
arising from pressures globally, added to local factors in the PRC,
we believe the Group is well positioned to benefit from a future
recovery and from the re-establishment of a steady and compliant
supply source. The flexibility shown by the Group in adapting to
changing circumstances is encouraging and we continue to explore
opportunities to increase shareholder value.
The Board continues to work very hard to restructure our
existing business given the regulatory changes in the PRC. Given
the significant fall in revenue in the first half of the year, we
are very conscious of the need to preserve our cash resources as we
try to find alternative sources of supply and revenue to comply
with the new PRC regulations or additional business lines to
diversify our operations. We continue to explore both trading and
corporate solutions, which may include seeking additional funding,
to the issues that we have encountered since April and will keep
shareholders informed as to progress.
Finally, 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
21 December 2018
Consolidated Statement of Comprehensive Income
6 months 6 months
to 30 September to 30 September
2018 2017 Year to
31 March
Notes 2018
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Continuing operations
Revenue 3 138,777 478,904 857,145
Cost of sales (138,434) (475,075) (847,884)
-------------- -------------- --------------
Gross profit 343 3,829 9,261
Other revenues 157 6 11
Selling and distribution expenses (29) (79) (139)
Administrative expenses (2,826) (3,283) (7,338)
-------------- -------------- --------------
Operating (loss)/ profit (2,355) 473 1,795
Finance cost - - -
-------------- -------------- --------------
(Loss)/Profit before tax (2,355) 473 1,795
Income tax expense 10 10 (102)
-------------- -------------- --------------
(Loss)/Profit and total comprehensive
income for the period (2,345) 483 1,693
(Loss)/Profit and total comprehensive
income for the year attributable
to the owners of the Company (2,345) 483 1,693
(Loss)/Earnings per share 5 HKD HKD HKD
Basic (0.019) 0.004 0.014
Diluted (0.019) 0.004 0.013
Consolidated Statement of Financial Position
Notes As at 30 September 2018 As at 30 September 2017 As at 31 March 2018
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Assets
Non-Current Assets
Property, plant and equipment 39,778 37,395 40,571
Intangible assets 1,406 1,507 1,457
-------------- -------------- --------------
41,184 38,902 42,028
-------------- -------------- --------------
Current Assets
Inventories 22,286 21,620 25,792
Trade receivables 4,548 14,840 11,440
Prepayments, deposits and other
receivables 10,019 9,425 10,066
Tax recoverable 3,268 - 2,367
Cash and cash equivalents 6 5,396 3,131 12,275
-------------- -------------- --------------
45,517 49,016 61,940
-------------- -------------- --------------
Total Assets 86,701 87,918 103,968
Equity and liabilities
Equity attributable to owners of
the company
Share capital 7 15,549 15,549 15,549
Share premium 42,167 42,167 42,167
Group reorganisation reserve (527) (527) (527)
Share based payments reserve 662 662 662
Foreign Exchange reserve (910) (3,394) (910)
Retained earnings 7,576 8,711 9,921
-------------- -------------- --------------
Total Equity 64,517 63,168 66,862
-------------- -------------- --------------
Non-current liabilities
Deferred tax 128 148 137
-------------- -------------- --------------
128 148 137
-------------- -------------- --------------
Current liabilities
Trade payables 8,136 9,001 18,295
Accrued liabilities and other
payables 4,746 5,971 9,500
Tax payable 9,174 9,630 9,174
-------------- -------------- --------------
22,056 24,602 36,969
-------------- -------------- --------------
Total Liabilities 22,184 24,750 37,106
-------------- -------------- --------------
Total Equity and Liabilities 86,701 87,918 103,968
Consolidated Statement of Cash Flows
6 months to 30 September 6 months to 30 September Year to 31 March 2018
Notes 2018 2017
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Cash flows from operating
activities
Net cash from operating
activities 1 (6,879) (786) 13,092
Taxation - (40) (776)
---------- ---------- ----------
Net cash (used in)/
generated from operating
activities (6,879) (826) 12,316
Investing activities
Addition of property, - (14) -
plant and equipment
---------- ---------- ----------
Net generated from / - (14) -
(cash used) in investing
activities
---------- ---------- ----------
Net cash from / (used in) - - -
in financing activities
---------- ---------- ----------
Taxation - - -
Net increase / (decrease)
in cash and cash
equivalents (6,879) (840) 12,316
Cash and cash equivalents
at beginning of the
period 12,275 1,288 1,288
Effect of foreign
exchange rate changes - 2,683 (1,329)
---------- ---------- ----------
Cash and cash equivalents
at the end of the period 5,396 3,131 12,275
Represented by:
Bank balances and cash 5,396 3,131 12,275
Notes for Consolidated
Statement of Cash Flows
1. Net cash from operating
activities
6 months to 30 September 6 months to 30 September
2018 2017 Year to 31 March 2018
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Profit/(Loss) before income
tax (2,355) 473 1,795
Adjustments for:
Depreciation on property,
plant and equipment 793 405 1,590
Interest income - 6 -
Amortisation 50 50 100
Foreign Exchange - (2,127) -
Difference
(Increase) / decrease in
inventories 3,507 13,534 9,361
Decrease/(Increase) in
trade receivables 6,893 (13,155) (9,755)
Decrease / (Increase) in
prepayments, deposits and
other receivables (853) (3,764) (4,405)
Increase / (decrease) in
trade payables (10,160) 2,896 12,190
Increase / (decrease) in
accrued liabilities and
other payables (4,754) 896 2,216
---------- ---------- ----------
Cash generated from / (used
in) operations (6,879) (786) 13,092
Consolidated Statement of Changes in Equity
Share Share Share Group Foreign Retained Total
Capital premium based Reorgan-isation exchange Earnings
payment Reserve reserve
reserves
HKD'000 HKD'000 HKD'000 HKD'000 HKD'000 HKD'000 HKD'000
As at 31 March
2017 15,549 42,167 662 (527) (1,267) 8,228 64,812
Total comprehensive
income for the
period - - - - - 483 483
Foreign exchange
difference - - - - (2,127) - (2,127)
---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 30 September
2017 15,549 42,167 662 (527) (3,394) 8,711 63,168
Total comprehensive
income for the
period - - - - - 1,210 1,210
Foreign exchange
difference - - - - 2,484 - 2,484
---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 31 March
2018 15,549 42,167 662 (527) (910) 9,921 66,862
Total comprehensive
income for the
period - - - - - (2,345) (2,345)
Foreign exchange - - - - - - -
difference
---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 30 September
2018 15,549 42,167 662 (527) (910) 7,576 64,517
---------- ---------- ---------- ---------- ---------- ---------- ----------
Notes to the interim financial information
1. General information
Zibao Metals Recycling Holdings Plc is a company incorporated in
England on 9 October 2013 under the Companies Act 2006 but
domiciled in Hong Kong. It was listed on the AIM market on 20 June
2014. The Group's principal activity is that of trading and
processing scrap metals.
2. Basis of preparation and significant accounting policies
This interim report, which incorporates the financial
information of the Company, has been prepared using the historical
cost convention, on a going concern basis and in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union, using accounting policies which are consistent
with those set out in the financial statements for the year ended
31 March 2018.
Taxes
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
Standards and Interpretations adopted with no material effect on
financial statements
There are no IFRS or IFRIC interpretations that are effective
for the first time in this financial period that would be expected
to have a material impact on the Group.
Standards, interpretations and amendments to published standards
that are not yet effective.
The following new standards, amendments to standards and
interpretations have been issued, but are not effective for the
financial period beginning 1 April 2018 and have not been early
adopted.
Reference Title Summary Application date Application
of standard date of
Group
---------- ----------- ---------------------------- ------------------- -----------
IFRS 16 Leases Original issue Periods commencing 1 April
on or after 1 2019
January 2019
---------- ----------- ---------------------------- ------------------- -----------
IFRS 17 Insurance IFRS 17 Insurance Contracts Periods Commencing 1 April
Contracts on or after 1 2021
January 2021
---------- ----------- ---------------------------- ------------------- -----------
The directors anticipate that the adoption of these standards
and the interpretations in future periods will have no material
impact on the financial statements of the Group.
3. Segmental reporting
In the opinion of the directors, the Group has one class of
business, being the trading of scrap materials. The Group's primary
reporting format is determined by the geographical segment
according to the location of its establishments. There is currently
only one geographic reporting segment, which is China. All revenues
and costs are derived from the single segment.
4. Directors' remuneration
6 months 6 months
to 30 September to 30 September Year to 31
2018 2017 March 2018
Salaries, Salaries, Salaries,
fees and fees and fees and
options options options
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Wenjie Zhou 120 120 240
Jianfeng Li 120 120 240
Alan Ong 66 58 116
Chin Phang Kwok 66 58 116
Peter Greenhalgh 66 58 116
Ajay Rajpal 66 58 116
-------------- -------------- --------------
504 472 944
_________ _________ _________
5. (Loss)/Earnings per share
(Loss)/Profit per share data is based on the Group profit for
the period and the weighted average number of shares in issue.
6 months to 30 September 6 months to 30 September
2018 2017 Year to 31 March 2018
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
(Loss) /Profit for the
period attributable to
owners of Company (2,345) 483 1,693
Weighted average number of
ordinary shares for the
purposes of basic earnings
per share (000's) 122,010 122,010 122,010
Weighted average number of
ordinary shares for the
purposes of diluted
earnings per share
(000's) 125,453 125,453 125,453
6 months to 30 September 6 months to 30 September
2018 2017 Year to 31 March 2018
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Basic loss per share
Total basic losses per share (0.019) 0.004 0.014
Diluted loss per share
Total basic and diluted earnings per share (0.019) 0.004 0.013
---------- ---------- ----------
6. Cash and cash equivalents Group
As at 30 As at 30 As at 31
September September March 2017
2018 2017
HKD'000 HKD'000 HKD'000
UNAUDITED UNAUDITED AUDITED
Cash and bank
balances 5,396 3,131 12,275
-------------- -------------- --------------
Cash and bank
balances
as presented
in balance
sheets 5,396 3,131 12,275
Add: Pledged - - -
fixed
deposits
-------------- -------------- --------------
Cash and cash
equivalents
as presented
in
consolidated
statement of
cash flows 5,396 3,131 12,275
_________ _________ _________
7. Share capital
The issued share capital as at 30 September 2018 was 122,010,000
ordinary shares of GBP0.01 each (30 September 2017: 122,010,000
ordinary shares of GBP0.01, 31 March 2018: 122,010,000 ordinary
shares of GBP0.01)
8. Related-party transactions
During the period, the Group entered into the following trading
transactions with related parties that are not members of the
Group:
Sales of goods
6 months to 30 6 months to 30 Year to 31 March
September 2018 September 2017 2018
HKD' HKD' HKD'
000 000 000
----------------- ---------------- -----------------
Wang Kei Yip
Development
Limited - 4,387 11,288
----------------- ---------------- -----------------
The following balances were outstanding at the end of the
period:
Amounts owed by related Amounts owed to related
parties parties
As at 30 As at 30 As at As at 30 As at 30 As at
September September 31 March September September 31 March
2018 2017 2018 2018 2017 2018
HKD' HKD' HKD' HKD' HKD' HKD'
000 000 000 000 000 000
----------- ----------- ---------- ----------- ----------- ----------
Wang Kei Yip - - - - 597 -
Development
Limited
----------- ----------- ---------- ----------- ----------- ----------
Ben Lee is the brother in law of the director, and is a director
of Wang Kei Yip Development Limited. Wang Kei Yip Development
Limited is therefore a related party.
The amount due to Wenjie Zhou was unsecured, interest-free and
had no fixed term of repayment. All the above transactions were
done at arm's length.
9. The unaudited results for the period ended 30 September 2018
do not constitute statutory accounts within the meaning of Section
434 of the Companies Act 2006. The comparative figures for the
period ended 31 March 2018 were extracted from the audited
financial statements which contained an unqualified audit report
and did not contain statements under Sections 498 to 502 of the
Companies Act 2006.
10. This interim financial statement will be, in accordance with
the AIM Rules for Companies, available shortly on the Company's
website at www.zibaometals.com.
11. The Company is incorporated in the UK but is treated as a
Hong Kong resident for tax purposes.
Macau and Hong Kong tax has been provided at a rate of 12% and
16.5% respectively.
There was deferred taxation in respect of the period.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR PGGUPPUPRGUG
(END) Dow Jones Newswires
December 21, 2018 05:24 ET (10:24 GMT)
Phimedix (LSE:PHM)
Historical Stock Chart
From Dec 2024 to Jan 2025
Phimedix (LSE:PHM)
Historical Stock Chart
From Jan 2024 to Jan 2025
