TIDMGTS
RNS Number : 3780O
GTS Chemical Holdings PLC
27 May 2015
27 May 2015
GTS Chemical Holdings plc
("GTS" or the "Company" or the "Group")
Preliminary Results
Group Revenue up 45.9%; Maiden Dividend proposed
GTS Chemical Holdings plc (AIM:GTS), the specialty chemicals
producer and China's largest producer of ammonium sulfite, is
pleased to report on its preliminary results for the year ended 31
December 2014, reflecting on another period of very robust
growth.
Highlights
-- Performance across all divisions exceeded market expectations
-- Revenue 45.9% higher
-- Profit before tax up 33.8%
-- Stable gross margin of 21.1% (2013: 21.2%)
-- Significant strategic and corporate progress with AIM listing
and acquisition of neighbouring land
-- Maiden dividend of 1.8 pence per share proposed
Andrew Harding, Non-Executive Chairman, commented: "The Group
has delivered a strong performance in 2014; we have exceeded market
expectations in all respects and the declaration of our maiden
dividend is fully supported by our results.
"We are currently investing in the future to meet expected
demand for our two main products and despite our rapid growth we
have remained focused on maintaining margins to increase bottom
line profitability. We remain committed to generating returns and
delivering shareholder value. "
Enquiries:
GTS Chemical Holdings plc
Mr Roy Su, CFO Tel: +86 159 5935 8899
www.gtschemical.com
SP Angel Corporate Finance Tel: +44 (0) 20 3470 0470
LLP
Nominated Adviser and Broker
David Facey / Stuart Gledhill
/ Liz Yong
Yellow Jersey PR Limited Tel: +44 (0) 7768 537
739
Dominic Barretto / Alistair
de Kare-Silver
About GTS Chemical Holdings plc
GTS manufactures specialty chemicals for the paper and chemicals
industry. The Group is the largest Chinese producer of ammonium
sulfite, a chemical used to manufacture paper from straw. GTS has
also a rapidly growing lubricant oil division which services the
automotive and industrial markets. Trading in recarburizer is its
third division, which accounts for less than 10% of Group
revenue.
The Group is located in Shandong Province, one of the largest
provinces in China, ranked by GDP, and an area rich in downstream
industries. GTS' location also means it is close to several
chemical plants and paper factories, which gives it a distinct
advantage over its competitors.
The Company is exposed to structural growth in the paper
industry and chemicals sector, and market research estimates that
from 2014 to 2020, China's demand for ammonium sulfite, led by the
paper industry, is set to grow at an annual compound growth rate of
12%. GTS stands to gain from the Chinese Government's support of
the non-wood paper industry and its drive to restructure the
lubricant oil market through increased regulation and higher
standards which favour the more modern producer.
The Group has a history of strong profit growth and consistently
high operating margins.
Chairman's Statement
Andrew Harding reports on a strong performance in 2014.
Performance
I am pleased to report an excellent performance in 2014 with
both of our main business segments performing better than expected
whilst demand for our products continues to grow; turnover was up
by an impressive 45.9% over the previous year. Our growth continues
into 2015 with turnover for the first quarter being 40.0% higher
than the first quarter of 2014.
We have concentrated on implementing our strategy set out at the
time of our IPO in 2014 which was to increase production capacity
of our Specialty Chemicals division to meet contracted demand and
to prepare for the expansion of our Lubricant Oils division as
demand grew. I am pleased to say that following the acquisition of
the land adjacent to our existing facilities we have commenced the
implementation of our next phase of growth and expect that our
production capacities will grow significantly in 2015.
Our two main divisions continue to benefit from the government
backed environmental changes that are currently taking place in
China. Our biggest product, ammonium sulfite, is in increasing
demand as the production of paper from straw continues to grow. We
believe that the increase in production of paper from straw will
continue to exceed the overall increase in demand for paper in
China as smaller, less environmentally friendly, producers leave
the market. Our modern lubricating oils production plant is able to
meet the increasingly stringent demands of regulation and the
consumer at the expense of smaller less efficient and less
environmentally friendly producers.
In the knowledge that we live in a changing world, we continue
to seek more efficient methods of production and our in-house
development team continues to refine our production processes and
this year we have gained two more patents and have launched new
products within our Lubricant Oils division.
Dividend
Our performance in 2014 and our confidence in the future
justifies our stated intention to recommend a dividend equal to
approximately 5% of the IPO issue price. Accordingly, we are
recommending a dividend of 1.8p per share which will be put to
shareholders for approval at the Company's AGM.
Our CEO and major Shareholder has decided to reinvest his
portion of the dividend (amounting to RMB12.7m net of tax) back
into the Chinese operating subsidiary by way of a 10 year loan at
3% per annum with interest being payable at the end of the term. Mr
Liu's decision is welcomed by the board as it will enable us to
invest and expand our operations at a faster rate than otherwise.
Moreover, it underlines his commitment to the business and its
success for all shareholders.
Andrew Harding
Non-Executive Chairman
27 May 2015
Group Chief Executive's Review
Cheng Liu reports that GTS has continued to grow throughout the
period.
2014 performance overview
GTS has delivered growth in turnover in excess of expectations
of 45.9%.
Speciality Chemicals delivered growth of 24.4% compared with the
previous year. This was driven largely by the demand from the paper
industry as production of paper from straw continued to grow,
supported by government initiatives.
The absolute increase in Lubricant Oils sales was 194.9%,
although this is in part because 2013 did not represent a full
year, as sales began only in July 2013. Comparing H2 2014 with H2
2013, a better indication of underlying growth, shows an increase
of 61.3%, underlining the true strength of this division. Growth
has continued into the first quarter of 2015 as we achieved a 67%
increase compared to the same period last year. Given the continued
growth we are expecting to invest further in this division towards
the end of 2015 in order to double our capacity.
Reported growth in Recarburizer sales was 101.6%. Similarly to
Lubricant Oils, sales of Recarburizer began only in July 2013.
Comparing H2 2014 with H2 2013 indicates a 2% drop in sales over
the period. This is consistent with our strategy that the
Recarburizer division is and will remain a relatively small part of
our business. Despite its relative size, the division remains
profitable achieving a gross margin similar to that of our other
two businesses.
Segmental sales analysis
Sales (RMB 12 months 12 months Absolute Increase
millions) to 31 December to 31 December
2014 2013
Speciality
Chemicals 504.3 405.3 +24.4%
Lubricant
Oils* 138.6 47.0 +194.9%
Recarburizer* 61.7 30.6 +101.6%
Total 704.6 482.9 +45.9%
*Commenced in July 2013
Sales of Chemicals by end customer
Sales RMB m 2013 2014 % increase %total % total
2013 2014
Chemical industry 195.2 193.4 (0.9) 48.2 38.4
Paper industry 113.5 148.3 30.7 28.0 29.4
Food 51.2 70.4 37.5 12.6 14.0
Distributors 20.0 56.7 183.4 4.9 11.2
Other 25.4 35.4 39.5 6.3 7.0
405.2 504.2 24.4 100.0 100.0
Speciality Chemicals
Specialty Chemicals remains our largest division representing
71.6% of total turnover. In 2014, nearly half of our sales in this
division were made to the chemical industry. This has declined both
in magnitude (-0.9%) and as a percentage of total division sales
compared with 2013. Despite the large increase in sales to the
paper industry this channel has remained at just below 30% of total
divisional sales as sales to the food industry and to general
distributors have also grown significantly which has compensated
for the drop in sales to the chemical industry.
Sales to our largest customer, Tralin Paper grew by 50%, meeting
expectations as Tralin itself progressed its own expansion. In
2014, Tralin accounted for 21.8% of total Chemicals divisional
sales (2013: 18.1%). Sales to all paper companies increased by
30.7% and sales to non-paper companies increased by 21.9%.
Accordingly, although Tralin remains our largest customer, growth
in this segment is not entirely dependent upon them. Moreover it
should be noted that at present we are the only producer of
ammonium sulfite able to supply sufficient quantities of consistent
quality in order to meet their needs.
Lubricant Oils
Sales in the Lubricant Oil division, which began trading in July
2013, reached RMB 138.6 million in 2014; sales for the six months
to 31 December 2013 were RMB 47 million. The division now
represents 19.7% of Group revenue. The increase in sales has been
driven by investing in our marketing of the Lubricant Oils
division's products through an increase in the size of our
marketing team, opening a sales office in Jinan, the capital of
Shandong Province, and through direct advertising. As a result we
have enlarged our distributor network and increased national
coverage, from 18 distributors across 9 provinces at the beginning
of the year to 48 covering 18 provinces by the end of 2014.
In 2014, 91.3% of the Lubricant Oils division's sales consisted
of automotive oils and 8.7% of industrial oils. Approximately 80%
of the sales of automotive oils are to repair workshops and the
remainder to petrol stations through our distributors. As part of
the process of increasing our market presence in the automotive
sector we have commenced production of allied products such as
anti-freeze and brake fluid, in order to be able to offer a more
complete product range. Similarly, we have begun production of
cutting fluid to expand our range of products to our industrial
customers.
During the year, in response to customer feedback and to widen
our product reach, we repositioned our Qiaoke brand, which is now
targeted at the medium to low end of the market. Our Ogistar and
Changyun brands continue to target the medium to high end of the
market. Ogistar is our biggest seller by volume and sales of the
other two main brands are broadly equal. Industrial sales and other
products amounted to 676 tonnes.
In 2014, the average sales price for our premium brand,
Changyun, was RMB 16,500 per tonne, for Ogistar, our mid- range
brand, RMB 16,000, and for Qiaoke, which is aimed at the lower to
mid end of the market RMB 14,300 per tonne. Despite the fall in the
world oil price, the cost of base oil in China has remained pretty
constant. Accordingly in 2014 we have not seen any significant
reduction in turnover nor erosion in margins.
Recarburiser
The Recarburizer division, which also began trading in July
2013, has performed consistently, generating revenue of RMB 61.7
million; sales for the six months to 31 December 2013 were RMB 31
million. The distributor network has also been expanded, from 11
distributors across 6 provinces at the beginning of the year to 17
distributors in 7 provinces by the end of 2014. Sales in the second
half of 2014 were roughly equal to the sales in the second half of
2013. This is consistent with our strategy to keep the Recarburizer
Division as a relatively modest part of the Group's activities
although we have seen modest growth in the first quarter of
2015.
Gross profit and margins
Gross profit for the year increased by 45.2% to RMB 148.7
million from RMB 102.4 million in 2013.
12 months 12 months Increase
to 31 December to 31December in
Gross
Gross Margin Gross Margin Profit
Gross Profit 2014 % 2013 % %
(RMB millions)
Specialty Chemicals 106.5 21.1 84.1 20.7 +26.6%
Lubricant Oils* 29.1 21.0 11.2 23.8 +159.8%
Recarburizer* 13.1 21.2 7.1 23.2 +84.5%
Total Gross
Profit 148.7 21.1 102.4 21.6 +45.2%
Gross Margin 21.1% 21.2%
Whilst overall gross margin has decreased slightly year on year
to 21.1% from 21.2%, it has increased slightly in the Specialty
Chemicals division and decreased in the Lubricant Oils and
Recarburizer divisions.
The gross margin that we are achieving in the Lubricant Oil
division has stabilised now that the business has begun to mature
and we expect that the margin will remain fairly constant in the
short term. In particular during 2014 repositioning of our Qiaoke
brand had an impact upon gross margin.
The gross margin for the Recarburizer division has also
stabilised since its introduction in 2013. We foresee slight
further fall in the margins may happen for this division, however
small fluctuations are immaterial to the overall results of the
group.
Costs
Expenses increased at a slightly faster rate than revenue mainly
due to labour cost increases, largely resulting from the enlarged
Lubricant Oils sales team. Additional expenses related to the
company's listed status such as fees to non-executive directors and
professional advisers.
Seasonality
In general, none of our businesses are subject to seasonal
demand other than the impact of Chinese New Year, which is common
to most businesses. Chinese New Year has an impact upon sales in
the run up to New Year, but has most impact upon the results for Q1
each year. The chart below shows sales by quarter since Q1
2014.
Cash Flow
Net cash generated from operations
Net cash generated from operations fell by RMB 22.5 million from
RMB 48.2 million to RMB 25.7 million in 2013 largely as a result of
an increase in trade receivables and a decrease in trade and other
payables. Trade receivables actually increased by 11.6% compared
with our growth in turnover of 45.8% which highlights the efforts
that we have undertaken to ensure that our debtors are closely
monitored.
RMB m
--------------------- ------
Trade payables 12.1
--------------------- ------
Notes payable 16.3
--------------------- ------
Other taxes payable 20.3
--------------------- ------
Other (6.8)
--------------------- ------
Total 41.8
--------------------- ------
Trade payables and notes payable should be considered together
as they both represent payment for goods and services. The overall
amount has decreased by RMB 28 million as a result of a decision to
support our suppliers through earlier payment and from an
increasing reluctance of our suppliers to accept notes payable.
This reduction in the creditor base has had a one off impact in
2014 and we do not expect any further reduction in the terms upon
which we pay our suppliers.
Cash flow for other taxes payable included payment of personal
income tax withheld of RMB 21.8m related to the dividend payment
(RMB 109m) which was one off transaction relating to the
restructuring and was not related to the purchase of goods and
services.
Interest
The increase in interest paid reflects an increase in the
average level of borrowing in the period, although we remain a
lightly geared company.
Financing
Net cash from financing was RMB 11.8 million. This is best
analysed in three parts: net funds raised during the IPO process,
the net dividend paid in order to effect the restructuring required
in order to prepare for the IPO and an increase in bank debt.
Investment
Our total investment activities in 2014 amounted to RMB 33
million. This consisted of the purchase of the land use right for
RMB 20 million (classified as an intangible asset), the
construction of one new Specialty Chemicals production line and
upgrade of two production lines, plus building up one wasted sulfur
warehouse.
In April 2014, the Group invested RMB 4.9 million in an
additional liquid ammonium sulfite and liquid ammonium bisulfite
production line, increasing capacity by 25% from 240,000 tonnes per
year to 300,000 tonnes per year, based on an eight hour shift.
Additional ancillary facilities, including a sulphur warehouse,
were also constructed. Furthermore two of the existing liquid
ammonium sulfite and liquid ammonium sulfite production lines were
upgraded between December 2013 and February 2014, enabling GTS to
produce higher quality chemicals on these lines.
In December 2014, the group acquired 51,333 square meters (c.5.1
hectares or c.77 mu) of land which is directly opposite the
existing site. The land is designated for industrial usage, and the
land use right granted for a period of 50 years. The increased
production area will enable the company to expand significantly its
production of specialty chemicals and lubricating oils.
Dividend
The Group is committed to its dividend policy of a yield of
approximately 5% per annum, as stated in the Company's AIM
admission document.
The Board intends to recommend to shareholders, for approval at
the AGM that a dividend of 1.8 pence (GBP) per share be paid for
the full year. The proposed dividend represents a 5% annual yield
on the listing price of the Company's shares of GBP0.36 and is in
line with the indication made in the AIM admission document.
Outlook
The outlook for our core business segments is strong. Growth in
Specialty Chemicals continues to be underpinned by our contract
with Tralin Paper, which is continuing with its own expansion
plans, and by the expansion of other customer networks. With the
continuous improvement of product quality and brand awareness,
sales of specialty chemicals to other sectors continued to grow, in
particular to the food and pharmaceutical industries.
We also expect the growth in Lubricant Oils sales to continue to
rise as we increase our distributor network and brand recognition.
With the building up of more experienced staff and geographic
coverage, the Lubricant Oils division will contribute more to both
of revenue and profit.
We intend to continue to expand our production facilities,
during 2015 we intend to commence construction of a lubricating oil
production line on the newly acquired land, as well as expanding
our specialty chemicals facilities on the existing site.
I would like to thank our Board of Directors, our employees and
our shareholders for their support throughout the year. All
involved with the company can reflect with pride on 2014, we have
achieved a successful AIM listing and delivered the commitments
made to investors. We look forward to updating our shareholders on
progress during 2015.
Cheng Liu
Group Chief Executive
Consolidated and Company Statement of Comprehensive Income
For the period ended 31 December 2014
Note Group Group
Year Year Company
ended ended Period
31 December 31 December 22 January
2014 2013 to 31
RMB'000 Pro December
forma 2014
RMB'000 RMB'000
--------------------------- ---- ------------ ------------ -----------
Revenue 3 704,567 482,860 -
--------------------------- ---- ------------ ------------ -----------
Cost of sales 4 (555,829) (380,437) -
--------------------------- ---- ------------ ------------ -----------
Gross profit 148,738 102,423 -
--------------------------- ---- ------------ ------------ -----------
Selling and distribution
expenses 4 (21,584) (10,879) -
--------------------------- ---- ------------ ------------ -----------
Administrative expenses 4 (18,139) (11,487) (2,119)
--------------------------- ---- ------------ ------------ -----------
Operating profit 109,015 80,057 (2,119)
--------------------------- ---- ------------ ------------ -----------
Interest on bank deposits 783 549 -
--------------------------- ---- ------------ ------------ -----------
Non-operating income net
of expenses 429 (18) -
--------------------------- ---- ------------ ------------ -----------
Finance costs 6 (7,846) (4,094) (10)
--------------------------- ---- ------------ ------------ -----------
Profit before tax 102,381 76,494 (2,129)
--------------------------- ---- ------------ ------------ -----------
Income tax expense 7 (16,228) (11,643) -
--------------------------- ---- ------------ ------------ -----------
Profit for the period 86,153 64,851 (2,129)
--------------------------- ---- ------------ ------------ -----------
Other comprehensive income - - -
--------------------------- ---- ------------ ------------ -----------
Total comprehensive income
for the period 86,153 64,851 (2.129)
--------------------------- ---- ------------ ------------ -----------
Earnings per share 8
--------------------------- ---- ------------ ------------ -----------
Basic (RMB) 1.19 0.91
--------------------------- ---- ------------ ------------ -----------
Diluted (RMB) 1.19 0.91
Consolidated and Company Statement of Financial Position
As at 31 December 2014
Group
2013
Group Pro Company
2014 forma 2014
Notes RMB'000 RMB'000 RMB'000
----------------------------- ----- -------------- ------------- -------------
Non-current assets
----------------------------- ----- -------------- ------------- -------------
Property, plant and
equipment 9 46,431 38,094 -
----------------------------- ----- -------------- ------------- -------------
Intangible assets 10 28,763 9,103 -
----------------------------- ----- -------------- ------------- -------------
Investment in subsidiaries 11 - - 10
----------------------------- ----- -------------- ------------- -------------
75,194 47,197 10
----------------------------- ----- -------------- ------------- -------------
Current assets
----------------------------- ----- -------------- ------------- -------------
Inventories 12 31,275 31,681 -
----------------------------- ----- -------------- ------------- -------------
Trade and other receivables 13 148,280 132,859 57,029
----------------------------- ----- -------------- ------------- -------------
Pledged deposits 14 11,000 27,308 -
----------------------------- ----- -------------- ------------- -------------
Cash and cash equivalents 14 113,121 91,496 2
----------------------------- ----- -------------- ------------- -------------
303,676 283,344 57,031
----------------------------- ----- -------------- ------------- -------------
Total assets 378,870 330,541 57,041
----------------------------- ----- -------------- ------------- -------------
Capital and reserves
----------------------------- ----- -------------- ------------- -------------
Share capital 15 10,241 10,000 10,241
----------------------------- ----- -------------- ------------- -------------
Share premium 15 44,167 43,930 44,167
----------------------------- ----- -------------- ------------- -------------
Capital reserve 16 51,277 - -
----------------------------- ----- -------------- ------------- -------------
Merger reserves 17 (6,167) (6,165) -
----------------------------- ----- -------------- ------------- -------------
Statutory reserve 18 1,648 1,648 -
----------------------------- ----- -------------- ------------- -------------
Option reserve 19 197 - 197
----------------------------- ----- -------------- ------------- -------------
Retained earnings 101,112 14,832 (2,129)
----------------------------- ----- -------------- ------------- -------------
Total equity 202,475 64,245 52,476
----------------------------- ----- -------------- ------------- -------------
Current liabilities
----------------------------- ----- -------------- ------------- -------------
Borrowings 20 75,900 69,450 -
----------------------------- ----- -------------- ------------- -------------
Trade and other payables 21 62,706 104,594 4,565
----------------------------- ----- -------------- ------------- -------------
Dividends payable (net
of tax) - 87,200 -
----------------------------- ----- -------------- ------------- -------------
Current income tax
liabilities 4,660 5,052 -
----------------------------- ----- -------------- ------------- -------------
143,266 266,296 4,565
----------------------------- ----- -------------- ------------- -------------
Non-Current liabilities
----------------------------- ----- -------------- ------------- -------------
Long-term borrowings 20 6,590 - -
----------------------------- ----- -------------- ------------- -------------
Long-term loans 22 26,539 - -
----------------------------- ----- -------------- ------------- -------------
33,129 - -
----------------------------- ----- -------------- ------------- -------------
Total liabilities 176,395 266,296 4,565
----------------------------- ----- -------------- ------------- -------------
Total equity and liabilities 378,870 330,541 57,041
----------------------------- ----- -------------- ------------- -------------
Consolidated and Company Statement of Changes in Equity
For the period ended 31 December 2014
The Group Share Share Capital Merger Statutory Option Retained Total
capital premium reserve reserve reserve reserve earnings RMB'000
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Balance at
31 December
2012 10,000 43,930 - - - - 60,629 114,559
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
(pro forma)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Comprehensive
income - - - - - - 64,851 64,851
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Payment of
dividends
(gross) - - - - - - (109,000) (109,000)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Merger reserve - - - (6,165) - - - (6,165)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Transfer of
statutory
reserve - - - - 1,648 - (1,648) -
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Balance at
31 December
2013 10,000 43,930 - (6,165) 1,648 - 14,832 64,245
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
(pro forma)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Comprehensive
income - - - - - - 86,153 86,153
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Issued of
new shares 241 8,439 - - - - - 8,680
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Share issue
costs - (8,202) - - - - - (8,202)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Capital
contribution - - 51,404 - - - - 51,404
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Merger reserve - - - (2) - - - (2)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Share based
payment
expenses - - - - - 197 - 197
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Transfer of - - - - - - - -
statutory
reserve
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Recognised
interest
expenses (127) 127 -
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Balance at
31 December
2014 10,241 44,167 51,277 (6,167) 1,648 197 101,112 202,475
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
The Company Share Share Option Retained
capital premium reserve earnings Total
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Balance at - - - - -
31 December
2013
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Comprehensive
income - - - (2,129) (2,129)
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Issued of
new shares 10,241 44,167 - - 54,408
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Share based
payment
expenses - - 197 - 197
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Balance at
31 December
2014 10,241 44,167 197 (2,129) 52,476
-------------- ---------------------- ------------ --------- --------- ------------ --------- --------- ------------
Consolidated and Company Statement of Cash Flows
For the period ended 31 December 2014
Group
Year Company
Group ended Period
Year 31 December 22 January
ended 2013 to 31
31 December Pro December
2014 forma 2014
Note RMB'000 RMB'000 RMB'000
---------------------------------------- ---- ------------ ------------ -----------
Cash flow from operating activities
---------------------------------------- ---- ------------ ------------ -----------
Profits before tax 102,381 76,494 (2,129)
---------------------------------------- ---- ------------ ------------ -----------
Depreciation of property, plant
and equipment 4,714 3,279 -
---------------------------------------- ---- ------------ ------------ -----------
Amortisation of intangible assets 340 150 -
---------------------------------------- ---- ------------ ------------ -----------
Impairment of non-current assets - 781 -
---------------------------------------- ---- ------------ ------------ -----------
Finance income (783) (549) -
---------------------------------------- ---- ------------ ------------ -----------
Finance costs 7,846 3,895 -
---------------------------------------- ---- ------------ ------------ -----------
Share based payment expense 197 - 197
---------------------------------------- ---- ------------ ------------ -----------
Recognised interest expenses 16 127 - -
---------------------------------------- ---- ------------ ------------ -----------
Share for share exchange adjustments 11 (2) - -
---------------------------------------- ---- ------------ ------------ -----------
Reversal of impairment of non-current
assets (781) (1,968) -
---------------------------------------- ---- ------------ ------------ -----------
Loss on disposal of property,
plant and equipment 781 1,968 -
---------------------------------------- ---- ------------ ------------ -----------
Operating cash inflows before
movements in working capital 114,820 84,050 (1,932)
---------------------------------------- ---- ------------ ------------ -----------
Decrease in inventories 406 11,307 -
---------------------------------------- ---- ------------ ------------ -----------
Increase in trade and other receivables (15,421) (62,717) (3,109)
---------------------------------------- ---- ------------ ------------ -----------
Increase/(decrease) in trade and
other payables (49,634) 29,003 4,565
---------------------------------------- ---- ------------ ------------ -----------
Net cash generated from/(used
in) operations 50,171 61,643 (476)
---------------------------------------- ---- ------------ ------------ -----------
Interest paid (7,846) (3,895) -
---------------------------------------- ---- ------------ ------------ -----------
Income taxes paid (16,620) (9,519) -
---------------------------------------- ---- ------------ ------------ -----------
Net cash generated from/(used
in) operating activities 25,705 48,229 (476)
---------------------------------------- ---- ------------ ------------ -----------
Investing activities
---------------------------------------- ---- ------------ ------------ -----------
Purchase of property, plant and
equipment (13,051) (14,015) -
---------------------------------------- ---- ------------ ------------ -----------
Expenditure on intangible assets (20,000) (1,627) -
---------------------------------------- ---- ------------ ------------ -----------
Proceeds from disposal of property,
plant and equipment - 18 -
---------------------------------------- ---- ------------ ------------ -----------
Interest received 783 549 -
---------------------------------------- ---- ------------ ------------ -----------
Net cash used in investing activities (32,268) (15,075) -
---------------------------------------- ---- ------------ ------------ -----------
Financing activities
---------------------------------------- ---- ------------ ------------ -----------
Proceed from issue of shares 8,677 8 8,677
---------------------------------------- ---- ------------ ------------ -----------
Payment of listing costs (8,199) - (8,199)
---------------------------------------- ---- ------------ ------------ -----------
Proceed from bank borrowings 82,490 86,450 -
---------------------------------------- ---- ------------ ------------ -----------
Repayment of bank borrowings (69,450) (42,450) -
---------------------------------------- ---- ------------ ------------ -----------
Long term / short term loans from
directors 28,252 - -
---------------------------------------- ---- ------------ ------------ -----------
Long term / short term loan from
subsidiary directors 5,365 - -
---------------------------------------- ---- ------------ ------------ -----------
Loan from the Company's shareholders 668 - -
---------------------------------------- ---- ------------ ------------ -----------
Capital contribution 51,277 - -
---------------------------------------- ---- ------------ ------------ -----------
Payment of dividend (87,200) - -
---------------------------------------- ---- ------------ ------------ -----------
Net cash from financing activities 11,880 44,008 478
---------------------------------------- ---- ------------ ------------ -----------
Net increase in cash and cash
equivalents 5,317 77,162 2
---------------------------------------- ---- ------------ ------------ -----------
Cash and cash equivalents at beginning
of period 118,804 41,642 -
---------------------------------------- ---- ------------ ------------ -----------
Cash and cash equivalents at end
of period 14 124,121 118,804 2
---------------------------------------- ---- ------------ ------------ -----------
Analysis of balance of cash and
cash equivalents
---------------------------------------- ---- ------------ ------------ -----------
Cash and cash equivalent as stated
in the consolidated statement
of financial position 113,121 91,496 2
---------------------------------------- ---- ------------ ------------ -----------
Time deposits with original maturity
of less than 6 months when acquired,
pledged for notes payable 11,000 27,308 -
---------------------------------------- ---- ------------ ------------ -----------
Cash and cash equivalents as stated
in the consolidated statement
of cash flows 14 124,121 118,804 2
---------------------------------------- ---- ------------ ------------ -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR MMGZKZNKGKZM
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