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For more information Strategic Financial Relations Limited Ms Jackey Ho/ Ms Joanne Lam Tel : 2864 4816 Fax : 2527 1196 http://www.strategic.com.hk |
(Hong Kong, 6th September, 2001) -- Singamas Container Holdings Limited ("Singamas"/ "the Group") (Stock code: 0716), one of the world's leading container manufacturers and container depot and mid-stream operators, today announced its interim results for the six months ended 30th June, 2001.
In the first half of 2001, the Group attained a consolidated turnover of US$85,530,000, representing an increase of 11.2% over the corresponding period of last year. Consolidated profit after taxation and minority interests was US$3,588,000, improved by 69.2% over 2000. Earnings per share was US 0.79 cent as compared to US 0.46 cent last year.
Mr. Chang Yun Chung, Chairman of Singamas said, "Benefiting from the strong container throughput in the PRC and the Asia Pacific region, Singamas once again reported satisfactory growth in both turnover and profit. During the period, the container depot business performed well with the mid-stream operation recorded healthy improvement and the container manufacturing business remained stable."
Container manufacturing remained the Group's core business, accounting for 78.6% of its total turnover. During the period, it achieved consolidated turnover of US$67,242,000, 8.0% higher than the same period of last year. Profit before taxation and minority interests was US$2,668,000, 57.6% higher than last year. The downturn of the U.S. economy depressed prices and slowed down new orders. However, the cost of raw materials also dropped which compensated for the decrease in sale prices and enabled the Group to maintain its overall profit margins.
The Company entered into a joint venture agreement to acquire a 40% equity interest in Shunde Shun An Da Pacific Container Co., Ltd. ("SSPC") on 6th February, 2001. SSPC mainly produces ISO dry freight containers and 45-foot/48-foot specialised containers. Commenting on this joint venture, Mr. Chang said, "After four months' operation, SSPC began to contribute positively to the Group with monthly production capacity currently at around 11,000 twenty-foot equivalent units ("TEUs"). The addition of SSPC not only increases the Group's total production capacity to capture a larger market share, it also extends the Group's manufacturing network to the Southern PRC to tap on the market demand in that region."
Shanghai Reeferco Container Co., Ltd. ("Shanghai Reeferco"), specialising in the production of environment friendly Chlorofluorocarbon free refrigerated containers, achieved a turnover of US$22,543,000, representing an increase of 125.8%, and a profit before taxation and minority interests of US$1,400,000, more than 18 times from last year. After the upgrading of Shanghai Reeferco's production facilities and processes by entering into a technical collaboration agreement with Hyundai Mobis Company Limited in October 2000, the factory's efficiencies have greatly improved with daily production capacity increased from 12 units to 28 units. Shanghai Reeferco produced 5,502 TEUs during the period under review.
The Group's container depot operations continued to perform well and achieved positive results. They recorded consolidated turnover of US$12,316,000 and a consolidated profit before taxation and minority interests of US$2,281,000, 28.3% and 86.3% above the corresponding period in 2000, respectively. Container throughput handled by the PRC's major ports along the coastline remained strong with double-digit growth rates. Shanghai, Qingdao, Ningbo and Xiamen were amongst the busiest ports in the PRC and they collectively achieved a growth rate of 19.9%. With a comprehensive container depot network along these coastal ports, the Group's PRC container depots benefited from this growth and attained a turnover of US$8,096,000 and profit before taxation and minority interests of US$1,590,000.
In addition, the declining cargo throughput in Hong Kong increased the empty container storage business of the Group's container depots in Hong Kong. During the first half of 2001, the Group's Hong Kong depots recorded a profit before taxation and minority interests of US$691,000.
In line with the Group's strategy to extend its depot network coverage into other Asian countries, the Group entered into a shareholders' agreement on 12th February, 2001 with Pacific International Lines (Private) Ltd., Eastern Maritime (Thailand) Ltd. and a private investor to establish a new container depot, Singamas Falcon Logistics Co., Ltd. ("Singamas Falcon") in Bangkok, Thailand. Singamas Falcon has already commenced commercial operations in August.
The mid-stream operation achieved satisfactory results with a turnover of US$5,972,000 as compared to last year's figure of US$5,062,000, and registering a profit before taxation of US$953,000, increased by 22.5% from 2000. It is expected that the Group's mid-stream operation will continue to perform well in the future.
Mr. Chang said, "The inclusion of SSPC will further strengthen the competitiveness and market position of the Group's container manufacturing business in the PRC and the global markets. The new container depot, Singamas Falcon, is expected to bring satisfactory contributions to the Group while the mid-stream operation will continue to perform well in the future. We believe that the Group's business will continue to grow and generate positive results in the second half of 2001."
Looking into the future, the Group will continue to seek new business opportunities to extend its container manufacturing and depot networks with joint co-operations or acquisitions of factories and depots at strategic locations.
To enhance quality customer services, the Company implemented its website in May 2001 and is planning to offer the on-line placement of orders to further enhance its functionality. The website enables customers and associates to gain online access through Factory Online and Depot Online to track their orders and container movements at any time. The system has been installed in all the Group's factories, container depots and the mid-stream operation.
Mr. Chang concluded, "We will continue to strengthen our business foundations by focusing on our existing business and pursuing prudent cost control strategies. Leveraging the solid foundations established and the ongoing efforts of all our staff members, we are confident that Singamas will maintain good profitability in the years ahead."
Note: The full text of the Company's interim results announcement can be accessed through the Internet at : http://www.singamas.com and http://www.irasia.com/listco/hk/singamas
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