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HONG KONG, Nov 16, 2020 - (ACN Newswire) - Pizu Group Holdings Limited ("Pizu Group" or the "Company", together with its subsidiaries, collectively referred as the "Group"; Stock Code: 8053.HK), a company mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities, has recently announced its interim results for the six-month period ended 30 September 2020 (the "Reporting Period").
Affected by the COVID-19 epidemic and the unstable international political environment, it is a challenging year for many enterprises in various industries in 2020. As a civil explosive enterprise which has a leading position in the industry and can provide customers with "integrated" services, Pizu Group has achieved brilliant business performance in the challenging environment with its flexible business strategy and high-quality service. For the six months ended 30 September 2020, the Group recorded a revenue of approximately RMB738.7 million, representing an increase of approximately 5.8% as compared to the corresponding period in 2019. The increase was mainly due to the Group has recently developed Tajikistan market and Tibet market which continue to contribute the enormous revenue. During the Reporting Period, the Group recorded a gross profit of approximately RMB313.7 million, representing an increase of 49.7% as compared to the corresponding period in 2019; and a net profit of about RMB212.2 million, an increase of 40.2% over the same period last year.
Business Review
For the six months ended 30 September 2020, the primary income source of the Group came from sales of civil explosives and provision of blasting services. Especially, the business of provision of blasting operations has been bringing in sustainable revenue for the Group. The sales revenue of civil explosives business was approximately RMB298.9 million, an increase of 68.4% over the same period of last year, while the sales revenue of blasting service business was about RMB439.9 million.
In the future, the Group will continue to develop civil explosives production business and blasting service business. In terms of civil explosives business, the Group will steadily develop its production bases in Inner Mongolia and Tajikistan to meet market demand, and actively look for acquisition and merger opportunities to expand the market. In terms of blasting services, the Group will strive to strengthen the relationship with its existing customers, and devote itself to improve the bid winning rate to achieve new engineering opportunities.
At the same time, the Group is also actively seizing opportunities to diversify its businesses, so as to increase revenue sources and promote the long-term sustainable development of the Group. On 28 June 2019, the Group's wholly-owned subsidiary has entered into a Capital Injection and Cooperation Agreement with Anhui Jinding Mining Co., Ltd., a company engaged in the mining and processing of pyrite, iron ore and copper ore and the sale of the above mineral products. All the terms and conditions of the capital injection was completed on 9 October 2020. Upon completion of the Capital Injection and Cooperation Agreement, Anhui Jinding Mining Co., Ltd. has become a 51% owned subsidiary of the Group, and its financial results will be consolidated into the accounts of the Group since next quarter. The Group hopes to take this opportunity to extend the industrial chain to non-ferrous metals and precious metals mining and development industries.
Management of Pizu Group concluded, "We are very glad to see the Group achieve outstanding results in the challenging year of 2020, benefiting from the Group's flexible and effective business strategies and high-quality 'integrated' services. Although there are still many uncertainties in the economic environment at home and abroad, we have great confidence in the civil explosive industry and believe that the integration of blasting will become the main development trend of civil explosive industry. At present, with the in-depth adjustment of domestic supply structure in recent years, China's civil explosive enterprises are actively carrying out restructuring and integration, and the market concentration is improving gradually. At the same time, the Chinese government is increasing the investment in infrastructure, which will provide a strong driving force for the sustainable development of the civil explosive industry. In addition, with the implementation of The Belt and Road initiative, there will be more room for the growth of overseas civil explosive business for Chinese enterprises in the future.
While vigorously developing the civil explosive business, we will also make full use of our rich experience in mine engineering business and strive to expand the metal mine business. Specially, the Group's successful acquisition of Jinding Mining has laid an important foundation for us to develop metal mining business. In view of the financial environment in the next decade, we are optimistic about the future prices of mineral resources, especially for gold. Therefore, we are confident that the Group is able to achieve stable performance in the current challenging environment and create long-term value for the Group's shareholders."
About Pizu Group Holdings Limited
Pizu Group Holdings Limited ("Pizu Group") is mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities. The Group has civil explosive production companies, business companies, blasting operation companies and distribution to blasting operation. The Company is one of the few companies which have both explosive production qualification and blasting operation qualification, is in the industry-leading position and also the only listed company on Hong Kong GEM which is engaged in civil explosive industry. With the gradual development of the business, the Group's turnover and net profit have achieved a multiplier growth in the recent years.
This press release was issued by Bright Communications International Limited on behalf of Pizu Group Holdings Limited.
Topic: Press release summary
Source: Pizu Group Holdings Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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