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China Aluminum Cans Announces 2016 Interim Results Net Profit up 58.2% Leveraging Strong R&D Capability to Develop

August 29, 2016 From:China Cans Clicks:1024 Share to

Press Release [For ImmediateRelease]   China Aluminum Cans Announces2016 Interim Results  Net Profit up 58.2% Leveraging Strong R&D Capability toDevelop High Margin New Products  ...

 

Press Release

[For Immediate Release]

 

China Aluminum Cans Announces 2016 Interim Results  Net Profit up 58.2%

Leveraging Strong R&D Capability to Develop High Margin New Products

 

Highlights of 2016 Interim Results:

l   Net profit increased by 58.2% year-on-year to approximately HK$56.4 million.

l   Basic earnings per share were HK9.0 cents, up 7.1% year-on-year.

l   Gross profit margin up 7.5 percentage points to 35.6% from a year ago.

 

(29 August 2016, Hong Kong) China Aluminium Cans Holdings Limited (“China Aluminum Cans” or the “Company”) (stock code: 6898.HK), the largest aluminum aerosol can manufacturer in China, today announced its interim results for the six months ended 30 June 2016 (the “Period”). During the Period, net profit increased by 58.2% year-on-year to approximately HK$56.4 million. Basic earnings per share was HK9.0 cents, up 7.1% year-on-year.

 

The Company and its subsidiaries (the “Group”) recorded revenue of approximately HK$348.7 million in the first half of 2016, down 2.5% from a year ago. Underpinned by a 12.7% decline in cost of sales, its gross profit grew by 23.5% year-on-year to approximately HK$124.2 million, with gross profit margin advanced by 28.1% to 35.6% from the same period of the previous year.

 

With the productivity enhancement driven by the acquisition of an automated production line in November 2015, the Group achieved steady growth in production and sales. Nevertheless, due to the impact of depreciation of Renminbi against Hong Kong Dollar, the Group’s revenue for the Period slightly decreased when compared with the corresponding period last year. During the Period, the Group’s revenue was primarily derived from the sales of aluminum aerosol cans as well as aerosol and non-aerosol products. Revenue derived from the aluminum aerosol cans segment was approximately HK$120.8 million, up 5.4 % year-on-year, while revenue derived from the aerosol and non-aerosol products segment amounted to approximately HK$227.9 million, down 6.3% lower year-on-year.

 

During the Period, due to a reduction in production costs resulting from improved procurement process, cost of sales of the Group dropped 12.7% to approximately HK$224.5 million, accounting for approximately 64.4% of its total revenue in the Period, which was 7.5% lower than the same period of the previous year.  

 

Looking forward, Mr. LIN Wan Tsang, Chairman of the Board and Executive Director of China Aluminium Cans, said, “The competition in the global aluminum aerosol cans market will remain fierce. In particular, the competition from overseas small-sized manufacturers will intensify, coupled with the soft landing of the Chinese economy and a slowdown in domestic demand for consumable products and high-end personal care products in the PRC. In the face of the rapidly changing market environment, the Group will continue to diversify our product mix and develop new products with high gross profits and high demand. Meanwhile, we will actively optimize and integrate internal resources to consolidate our business foundation. The Group will make further investments in upgrading existing production facilities with more advanced machinery and equipment to enhance our product quality, production capacity and efficiency in order to keep in pace with the market developments, thereby creating more profit to our shareholders.”

 

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About China  Aluminium Cans Holdings Limited

The Company is principally engaged in the manufacturing of (i) monobloc aluminium aerosol cans, which are generally used in the packaging of fast-moving personal care products as well as pharmaceutical products; (ii) the content filling of aerosol cans, and production and sale of aerosol and non-aerosol products which focuses on the development of car care service products. In terms of aluminium aerosol cans, the Company accounted more than 30% market share in China for three consecutive years from 2010 to 2012. It is the largest manufacturer of aluminium aerosol cans in China.