红城Earnings per share increase to RMB44.12 cents (FY2006: RMB27.47 cents)

有呒搞错啊，这股这么便宜。


News Release
CHINA HONGCHENG ANNOUNCE 2007 ANNUAL RESULTS
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Profit Attributable to Shareholders Jumps 60.6% to RMB88.2 million
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Jacquard Cotton Fabrics and Bed Linen Sets OEM Business Represent the Main Contributors to the Revenue Increase
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Future Expansion Strategy in Higher Profit Margin Product - Bed Linen OEM Business Segment
Financial Highlights

Revenue increases 22.9% to RMB529.1 million

Profit attributable to shareholders jumps 60.6% to RMB88.2 million

Earnings per share increase to RMB44.12 cents (FY2006: RMB27.47 cents)
Singapore, 24 September 2007 – China Hongcheng Holdings Limited (中国宏诚控股有限公司)(“China Hongcheng” or the “Company”), an integrated home textile manufacturer of premium textile products today announced its annual results of the Company and its subsidiaries (collectively “the Group”) for the financial year ended 30 June 2007 (“FY2007” or “period under review”).
During the period under review, China Hongcheng, recorded a turnover of RMB529.1 million (FY2006: RMB430.6 million), representing an increase of 22.9% over last year. The Group’s gross profit amounted to RMB148.5 million (FY2006: RMB116.1 million), representing an increase of 27.9%. Profit attributable to shareholders increased to RMB88.2 million (FY2006: RMB54.9 million), representing an increase of 60.6% as compared to last year. The significantly increased profitability compared to the increase in revenue resulted from a shift to higher-profit margin products by the Group as well as increased sales.
The Group’s net asset value per share rose sharply by 66.7% to RMB82.7 cents as at 30 June 2007 compared to RMB49.6 cents as at 30 June 2006.
Said Mr. Liu Ming (刘明), Executive Chairman and founder of the Group, “We executed our plan to move up the value chain to produce higher-profit margin products in order to boost our growth. The strong results are mainly attributable to the Page 1 of 3
strong demand for our jacquard cotton fabrics as well as the strong growth of our new bed linen OEM business.”
The Group’s performance was led by the spectacular growth in the following products:
(1) Increase in sales of overseas contract manufacturing of bed linen sets:
Revenues from contract manufacturing of bed linen sets for overseas OEM customers, jumped significantly by 14,952.6% to RMB43.8 million (FY2006: RMB0.3 million) because the Group commenced its bed linen business segment in late 2005 and commenced the provision of contract manufacturing services in the second half of 2006. In FY2007, the number of bed linens exported to overseas customers exceeded 440,000 sets compared to only 500 sets in FY2006. All of the bed linen sets were exported overseas to renowned OEM customers, such as Indigo Home, Inc., in the United States, Canada and Australia.
(2) Increase in sales volume of jacquard cotton fabrics:
The Group is one of the largest textile manufacturers for extra-broad, multi-color jacquard cotton fabrics in the PRC. It increased its revenue from sales of jacquard cotton fabrics by 51.7% to RMB181.8 million (FY2006: RMB119.9 million) due to an increase in demand from domestic market and its sales volume increased by 50% to 9.0 million metres in FY2007 (FY2006: 6.0 million metres).
In addition, revenues from grey and dyed cotton fabrics increased by RMB2.6 million or 0.9% to RMB284.5 million (FY2006: RMB281.9 million), mainly due to an increase in sales volume to 27.1 million metres (FY2006:26.2 million metres).
Outlook and Future Plans
Riding on the growth of the China economy and rising living standards there, China Hongcheng is optimistic about the prospects of the demand for premium home textile products in the PRC market. Moreover, in light of the global outsourcing trend by international home textile brands to lower cost countries such as China, the Group is confident that it will benefit from providing contract manufacturing services to international manufacturers.
Said Mr. Liu, “China Hongcheng is well positioned to take advantage of worldwide outsourcing trend because we have the capabilities to manufacture a variety of premium quality home textiles that appeal to overseas customers, such as cotton fabrics with up to 1,600 thread counts and extra-broad, multi-coloured jacquard Page 2 of 3
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cotton fabrics.”
“The Group’s fabrics are used by reputable PRC and international brands, which underline the product quality and market position of China Hongcheng. To strengthen our penetration of the high-end product segments, we will expand our production capacity using the proceeds raised from the IPO.” Mr. Liu added.
To capture further orders from OEM customers overseas, China Hongcheng plans to double its existing annual production capacity of bed linen sets to 1 million sets. China Hongcheng also intends to increase its production capacity of cotton yarn and fabrics, which is used internally for the manufacture of bed linen sets. The additional capacity for bed linen sets and cotton yarn and fabrics is expected to be operational in the second half of 2007.
To meet the growing demands of the market and maintain the Group’s competitive edge, the proceeds from the Group’s recent listing on the SGX-ST in August will be used for the establishment of a technology centre and the enhancement of its research and development facilities and management system.
About China Hongcheng Holdings Limited
Starting out in 1977 as a state-owned manufacturer of cotton yarn and grey cotton fabrics in Shandong Province, the PRC, China Hongcheng has grown into an integrated home textile manufacturer with over 420 customers in the PRC and overseas. The Group’s products are used by renowned PRC brands such as “Fuannal” and “Ya Fang Ting” as well as some reputable overseas brands such as “Springs Global”, “Tommy Hilfiger”, “Sheridan”, and “Lacoste”.
Backed by its advanced production facilities with an emphasis on research and development, the Group produces more than 1,000 varieties of quality fabrics used in the manufacture of premium home textile products such as bedding articles, window curtains, and sofa cloth. In addition, the Group provides contract manufacturing services of bed linen sets to OEM customers in the United States, Canada, and Australia, such as Indigo Home, Inc.
For media enquiries, please contact:
Ms. Natalie Fong / Ms. Ada Ng
Email: [email protected]