SINGAPORE and HONG KONG, Aug. 12, 2011 /PRNewswire-Asia/ --
Financial Highlights
| (RMB 'mil) | 2Q2011 | 2Q2010 | Change % | 1H2011 | 1H2010 | Change % |
| Revenue | 313.9 | 234.5 | 33.9 | 610.4 | 457.6 | 33.4 |
| Gross profit | 107.8 | 75.9 | 42.1 | 209.9 | 148.7 | 41.2 |
| Profit before tax | 84.6 | 65.2 | 29.6 | 165.4 | 123.8 | 33.6 |
| Profit attributable to equity holders | 63.0 | 54.6 | 15.3 | 123.4 | 102.7 | 20.1 |
Midas Holdings Limited ("Midas" or the "Company", together with its subsidiaries, the "Group"; SGX-ST stock code: 5EN; SEHK stock code: 1021) today announced its financial results for the three months ("2Q2011") and six months ("2H2011") ended June 30, 2011. In 2Q2011, profit attributable to equity holders increased 15.3% to RMB63.0 million as compared to same period last year.
Group revenue rose 33.9% from RMB234.5 million in the three months ended June 30, 2010 ("2Q2010") to RMB313.9 million in 2Q2011. The Group's Aluminium Alloy Division recorded a 35.1% increase in its 2Q2011 revenue to RMB303.1 million, which accounted for approximately 96.5% of total revenue.
Within the division, the Transport Industry remains the largest revenue contributor, accounting for 71.9% of its revenue in 2Q2011. The "Others" segment, which included mainly the supply of aluminium alloy rods and other specialized profiles for industrial machinery, contributed 27.9% of revenue to the Aluminium Alloy Division. Revenue contribution from the Power Industry accounted for the remaining 0.2% of revenue from the division.
The Group's overall gross profit margin improved from 32.4% in 2Q2010 to 34.3% in 2Q2011. The improvement was due to a higher gross profit margin at the Aluminium Alloy Division, which rose from 33.1% in 2Q2010 to 35.0% in 2Q2011.
Selling and distribution expenses rose 68.8% to RMB9.9 million in 2Q2011, largely due to an increase in transportation and staff costs, as a result of the higher business volume recorded at the Group's Aluminium Alloy Division.
Administrative expenses increased 33.8% to RMB20.1 million in 2Q2011, mainly due to higher payroll costs arising from an increase in headcount to cater to the Group's current expansion plans, salary revisions, as well as increases in travelling and property taxes.
The Group's associated company Nanjing SR Puzhen Rail Transport Co., Ltd ("NPRT") contributed approximately RMB5.6 million in 2Q2011, compared to RMB11.9 million in 2Q2010. This was largely due to a decrease in delivery of train cars to its customers during the period under review.
In 1H2011, the Group achieved a 20.1% increase in profit attributable to shareholders to RMB123.4 million on the back of a 33.4% surge in revenue to RMB610.4 million.
As at June 30, 2011, the Group remained in a healthy financial position with cash and cash equivalents of RMB887.5 million.
In appreciation to shareholders for their support, the Group has proposed a one-tier tax exempt interim dividend of 0.5 Singapore cents per ordinary share, to be paid out on a date to be announced later.
Outlook
Mr. Patrick Chew, CEO of Midas, said, "The Group has continued to add new metro contracts to its project portfolio as PRC cities expand and build new light rail and metro systems to meet the population's public transportation needs.
Following the recent high-speed rail accident, there has been an increased focus and emphasis on safety and quality standards. We are confident that this trend will ultimately benefit certified and qualified suppliers such as Midas, which has built a solid track record for the quality of our products and services."
The Group's Aluminium Alloy Division has secured several new metro contracts year-to-date, which include the Izmir Light Rail Transit Project in Turkey, Malaysia Intercity Urban Rail Project, Shanghai Metro Line 12 project, Guangzhou Metro Lines 1, 2 and 8 projects, as well as the Kunming Metro project. The Kunming Metro project marked the Group's breakthrough into Kunming, one of the largest cities in the PRC that does not have an existing metro system.
NPRT also won two metro contracts last month, including Nanjing Metro Line 3 Project and Nanjing Metro Line 10 Project.
In January 2011, the Group's Aluminium Alloy Division secured the CRH5 EMU High Speed Train Project.
The Group remains cautiously optimistic of the medium to long term development prospects of the PRC high speed train industry. The Group will monitor the situation closely and work with its partners.
About Midas Holdings Limited
Founded in 2000, Midas is today the leading manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector in the PRC. Over the years, Midas has built an established track record in supplying to the PRC passenger rail transportation sector, which includes participation in landmark contracts such as trains for the Beijing-Tianjin High Speed Train Project, and inter-city high speed trains for the CRH3-380 Project. Midas' customers include domestic PRC licensed train manufacturers from China South Locomotive & Rolling Stock Corporation Limited ("CSR") and China CNR Corporation Limited ("CNR"), as well as international customers such as Alstom Transport ("Alstom"), Siemens AG ("Siemens") and Bombardier Transportation.
Midas has a strategic 32.5% stake investment in Nanjing SR Puzhen Rail Transport Co., Ltd ("NPRT"), an associate company engaged in the development, manufacturing and sale of metro trains, bogies and their related parts. NPRT is one of the four Licensed Metro Manufacturers licensed to undertake metro train projects on a nationwide basis in the PRC.
In recognition of its consistent growth and profitability, Midas is one of only six companies, and the only aluminium alloy extrusion products manufacturer, in Asia to be included in Forbes Asia's "Best Under A Billion" list for four consecutive years from 2006 to 2009. The Company was also awarded the "Best Investor Relations Award (Gold)" at the Singapore Corporate Awards 2010 in the "S$300 million to less than S$1 billion market capitalisation" category. As testament to its strong brand name and reputation in the PRC, Midas was conferred the prestigious "China Well-Known Trademark" by the Trademark Office of the State Administration for Industry & Commerce of the PRC ("SAIC") in 2011.
Midas has a primary listing on the Mainboard of the Singapore Exchange Securities Trading Limited and a secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited.
