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| Strong Results Driven by Significant Growth in Orderbook |
HONG KONG, Aug 8, 2011 - (ACN Newswire) - The board of directors ("the Board") of Sound Global Ltd. ("Sound Global", or the "Company"; Hong Kong Stock Code: 0967.HK; Singapore Stock Code: E6E.SI) is pleased to announce its unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2011 ("the Period").
-- Consolidated revenue increased by 64.4% to RMB1,060.3 million.
-- Gross profit rise by approximately 69.0% to RMB329.6 million.
-- Profit for the Period increased by approximately 46.2% to
approximately RMB175.4 million.
-- Basic earnings per share for the Period increased from
RMB9.3 cents to RMB13.6 cents.
The Group's revenue of the Period increased by approximately RMB415.3 million or 64.4% from approximately RMB645 million in the six months ended 30 June 2010 ("the same period of last year") to approximately RMB1,060.3 million. As the Group continues to bid for EPC projects in China, Turnkey revenue contributed from China of the Period increased by approximately RMB21.6 million from approximately RMB565.5 million in the same period of last year to RMB781.5 million. Together with the contribution from the Saudi Arabia project of approximately RMB223.4 million, the Group's total Turnkey revenue of the Period was approximately RMB1,004.894 million. Revenue from operations and maintenance ("O&M") segment of the Period increased by approximately RMB17.3 million from approximately RMB5.9 million in the same period of last year to approximately RMB23.2 million. The increase is due mainly to certain Build-Operate-Transfer ("BOT") projects started operations. Revenue from equipment fabrication segment remained relatively consistent at approximately RMB79.811 million in the same period of last year and approximately RMB82.786 million in the Period.
Gross profit of the Period increased by approximately 69.0% from approximately RMB195 million in the same period of last year to approximately RMB329.6 million. This increase was in line with the higher revenue and the stable gross profit margin. The gross profit margin of the Period increased by approximately 0.9 percentage point from approximately 30.2% for the same period of last year to approximately 31.3%. Given the nature of the turnkey projects, where revenue is recognised based on the percentage of completion, the gross profit margin for engineering works would fluctuate from quarter to quarter depending on the amount of revenue recognised for the relevant projects during the quarters in review. On a year-to-year basis, the gross profit margin remained relatively stable at around 30%.
Looking forward, Chairman Mr. Wen Yibo said, "In the next five years, the development prospects of the water industries in China and in emerging countries are enormous and as the demand for water supply and wastewater treatment is steadily increasing. With increasing in competition in the EPC sector, we believe that with our proven track record, proprietary technologies and extensive sales and marketing network we are well positioned to bid for upcoming projects. The current municipal austerity conditions will be propitious for the BOT developments, we will therefore be continuing to identify and evaluate investment opportunities in BOT projects that will generate recurring income for the Group. Approximately 60% of the net proceeds from our convertible bonds issued in 2010 will be used for investments and acquisitions of BOT projects. With the continued demand for the upgrading of water treatment plants, demand for customized equipment is expected to remain stable. With the Chinese government's increasing efforts to supervise O&M markets, professional companies are increasingly being entrusted to carry out O&M work for third parties (including industrial and government), creating a rapid growth opportunities in O&M orders for the Group. Sound Global will continue to seek expansion opportunities outside China and speed up the pace of internationalization."
Contact:
Wonderful Sky Financial Group Company Limited
Daisy Sun
+852 3970 2185
daisysun@wsfg.hk
Echo Hu
+852 3970 2183
echohu@wsfg.hk
Peter Fung
+852 3970 2180
peterfung@wsfg.hk
Anni Li
+852 3970 2136
annili@wsfg.hk
Fax: +852 2865 1638
Topic: Earnings
Source: Sound Global
Sectors: Water, Daily Finance, Environment, ESG
https://www.acnnewswire.com
From the Asia Corporate News Network
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