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HONG KONG, July 28, 2010 - (ACN Newswire) - Sino Prosper State Gold Resources Holdings Limited ("Sino Prosper" or the "Company", together with its subsidiaries, the "Group", Stock Code: 00766.hk), a Chinese precious metals miner and producer, announces its audited annual results for the year ended 31 March 2010 (the "Year"). Together with the increase in turnover, the Group managed to improve its liquidity and maintained zero gearing as at the balance sheet date.
During the Year, Sino Prosper recorded total turnover of approximately HK$41.8 million, of which 56.7% was from the sale of fuel oil and chemicals (2009: 69.6%); and 43.3% from the sale of gold (2009: Nil). Total Group turnover increased by approximately 33% as compared to last year. Such increase was mainly attributable to the generation of turnover from the sale of gold. During the Year, the Group's net loss attributable to shareholders was approximately HK$58.9 million (2009: approximately HK$9.8 million). The Board of Directors did not recommend the payment of a final dividend for the year ended 31 March 2010 (2009: Nil).
The Company is now transforming its business model to build a large-scale business in the precious metals mining industry in China and has achieved several breakthroughs in this process, including the expansion of scope of business to gold mining operations. Subsequent to the fiscal year end, Sino Prosper acquired a 70% stake Ao Han Qi Xin Rui En Mining Industry Co., Ltd. ("AoHanQi") in Inner Mongolia and is in the process of a significant expansion of that gold mine's capacity to mine and process ore moving from the current rate of 50 tonnes per day ("tpd") to 1,000 tpd.
In addition, Sino Prosper announced on 17 May 2010 the entering into of a conditional agreement to acquire a further 27% interest in Heilongjiang Zhongyi Weiye Economic & Trade Co. Ltd. ("Zhongyi"), taking its ownership interest to 92% of Zhongyi and its 5 contiguous exploration licenses covering over 360 km2. The Group has now commenced active exploration projects on all its projects with a view to future expansion of its mineral resource base and productions levels.
Mr Richard Sung, CEO of Sino Prosper, said: "During the Year, Sino Prosper has been active in high-potential acquisition and investment opportunities. China is the world's largest producer of gold and is the second largest gold consumer. Sino Prosper is optimistic about the precious metals mining industry for the years ahead, and is poised to focus on the gold mining business in China in order to take advantage of this golden opportunity."
To better reflect this new business focus, in December 2009, the name of the Company was changed from "Sino Prosper Holdings Limited" to "Sino Prosper State Gold Resources Holdings Limited".
Sino Prosper strengthened its capital base during the Year. The Group successfully completed an institutional placing on 7 May 2010, which resulted in net proceeds of HK$548.7 million. The placing has significantly broadened the institutional investor shareholder base and provided a foundation for the rapid rollout of the Group's precious metals mining business.
As at 31 March 2010, Sino Prosper was in a healthy financial position with cash and bank balances of approximately HK$216 million (2009: HK$230.2 million). Its gearing ratio calculated as a ratio of interest bearing net debt to shareholders' funds was Nil (as at 31 March 2009: Nil). As at 31 March 2010, net current assets totalled approximately HK$200.2 million (as at 31 March 2009: approximately HK$273.5 million) and the current ratio was maintained at a level of approximately 8.7 (as at 31 March 2009: approximately 7.6). The Group's net asset value as at 31 March 2010 increased by 290.50% to approximately HK$1,070.8 million (as at 31 March 2009: approximately HK$274.2 million), which growth was mainly attributable to the acquisition of the initial interest in Zhongyi.
Mr Sung concluded, "We look forward, to building a diversified portfolio of China-based precious metal projects and that enhance shareholder value with increasing mineral resources and near-term earnings and cash flow., Leveraging on our clear strategies, experienced management and strong network in the PRC, Sino Prosper strives in the coming years to become a leading Chinese precious metals mining company with operations across the entire value chain."
Contact:
Sino Prosper State Gold Resources Holdings Limited
Mr Garry Stein
Director, Corporate Development
Tel: +852 2877-2789
E-mail: garrystein@sinoprosper.com
Quam IR
Ms Anita Wan
Tel: +852 2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852 2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852 2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Press release summary
Source: Sino Prosper State Gold Resources
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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