DGAP-News: China Specialty Glass AG / Key word(s): Quarter Results
China Specialty Glass AG with improved sales and gross margin
15.12.2011 / 09:19
---------------------------------------------------------------------
Gruenwald/Munich, December 15, 2011 - In the first nine months of the
financial year 2011, China Specialty Glass AG ('CSG') further improved its
sales and gross margin. The German holding of one of China's largest
producers of security glass achieved consolidated revenues of EUR 55.4
million, an 11.1% increase year-on-year. The gross profit in the first
three quarters of 2011 rose by 13.5% to EUR 25.4 million compared to
previous year's period while gross profit margin improved from 45.1% to
45.9%. Growth in sales was achieved mainly by increased sales of
high-margin products in CSG's product portfolio, namely automotive security
glass.
Re-negotiation of distribution agreement with Saint-Gobain affects net
profit
CSG is currently re-negotiating the exclusive distributorship contract with
Saint-Gobain, which has been signed earlier this year, in order to better
reflect the changing market environment in China and to reduce the Group's
exposure to the potential market risks deriving from the agreement.
Furthermore, the Group is in discussion with Saint-Gobain in areas of
potential collaboration outside the scope of the existing exclusive
distributorship rights.
As a result, in the third quarter 2011 CSG had to realise an impairment
loss of EUR 3.6 million on the rights anticipating the outcome of the
current re-negotiation of the distribution rights agreement. In addition,
the one-time IPO expenses amounting to EUR 1.4 million affected the
results. Accordingly, EBT for the first nine months came in at EUR 14.9
million, 19.5% below the comparable period 2010, and net profit decreased
year-on-year by 22.3% to EUR 12.2 million. Adjusted for these extraordinary
effects, EBT increased by 7.6% to EUR 19.9 million and net profit by 7.0%
to EUR 16.7 million: Thus, the adjusted net profit margin for the first
nine months of 2011 was 30.2%.
Sales guidance confirmed
CSG confirmed its plans to achieve revenues of EUR 75 million to EUR 80
million (assuming an average exchange rate of RMB/EUR 8.6864) and a net
profit margin of approximately 28% to 29% for the whole year 2011. Adjusted
for the extraordinary items (impairment and IPO expenses) the net profit
margin is expected to reach between 30% to 31%.
About China Speciality Glass AG
China Speciality Glass AG is the German holding company of China Specialty
Glass Group. The group develops, produces and sells specialty glass. The
company's major products sold under its 'Hing Wah' brand are security
glass, which includes bulletproof glass, intruder resistant glass, bomb
blast resistant glass and self-defence glass as well as construction glass,
which includes architecture laminated glass, architecture tempered glass,
fire resistant glass, hollow glass and electric-controlled colour-changing
glass. For security glass products in the Chinese banking and automotive
industry, the Group is one of the market leaders both in terms of
production output and market share.
The shares of China Specialty Glass AG are listed in the Prime Standard of
Frankfurt Stock Exchange
(ISIN DE000A1EL8Y8 / WKN A1EL8Y / Ticker 8GS).
For further requests please contact:
Kirchhoff Consult AG
Dr. Kay Baden
T: +49 40 60 91 86 39
F: +49 40 60 91 86 60
E: baden@kirchhoff.de
or visit www.csg-ag.com
End of Corporate News
---------------------------------------------------------------------
15.12.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: China Specialty Glass AG
An den Römerhügeln 1
82031 Grünwald
Germany
Phone: +49 (0)89 189 42 52 27
Fax: +49 (0)89 189 42 52 28
E-mail: ir@csg-ag.com
Internet: http://www.csg-ag.de
ISIN: DE000A1EL8Y8
WKN: A1EL8Y
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
149857 15.12.2011
DGAP-News: China Specialty Glass AG with improved sales and gross margin
| Source: EQS Group AG