DGAP-News: Gongyou Machines Ltd.: Results per 30.06.2010 - Trend towards Recovery

(firmenpresse) - DGAP-News: Gongyou Machines Ltd. / Key word(s): Half Year Results
Gongyou Machines Ltd.: Results per 30.06.2010 - Trend towards Recovery

11.10.2010 / 09:00

---------------------------------------------------------------------

Gongyou Machines Ltd. - Results per 30.06.2010 - Trend towards Recovery

After the Global crisis hit Gongyou badly in the previous financial year,
we observed a steady trend towards recovery during the reporting period.

Demand in China improved to a level where we operate already at full
capacity for the products designed for the Chinese domestic market. The
Chinese market, however, is more competitive and brings lower margins than
export markets.

Export markets recover only slowly, especially our previously largest
market, Russia, is only improving very recently. Demand for our machines
designed for international markets, which are our technologically most
sophisticated high margin products, is therefore still only moderate.

In total, our sales recovered by more than 19% to RMB 143 million and Gross
Profit increased by 54% to RMB 18 million.

Our net loss fell by 89% to only RMB 1.56 million. Excluding provisions on
bad receivables, which were caused by sales to clients who are affected by
financial difficulties since the crisis period, we would have already
entered the profitability zone during our last Financial Year.
Operationally, profitability improved over the last few months of the
reporting period.

in RMB mill                         FY 2010        FY 2009        +/- in %
Sales                                142.84         119.96           19.1%
Gross Profit                          18.09          11.75           54.0%
Net Loss after Tax                     1.56          13.97          -88.8%

Our Net Cash Flow from Operating Activities reached a positive RMB 7


million.

Our Balance Sheet is healthy with Shareholders' Equity of RMB 142 million
(equivalent to about EUR 15.6 million or EUR 1.60 per share).

The cash position increased drastically from RMB 4.9 million to RMB 54.5
million. Main reason was a loan granted for Research and Development
purposes of RMB 30 million. But also the fact that we imposed tighter
payment terms on our clients, and also improved the efficiency of our
logistics and production cycle allowed us to reduce working capital needs
and free up cash, in spite of a substantial increase in sales.

All balance sheet ratios (liquidity, indebtedness) are very comfortable.

The full annual report will be published on our website
www.gongyoumachines.com over the next few days.

Dong Yanwei
Chairman


End of Corporate News


11.10.2010 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

---------------------------------------------------------------------


100380 11.10.2010Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
Datum: 11.10.2010 - 09:01 Uhr
Sprache: Deutsch
News-ID 272558
Anzahl Zeichen: 3476

Kontakt-Informationen:

Kategorie:

Wirtschaft (allg.)

Diese Pressemitteilung wurde bisher 327 mal aufgerufen.

Alle Meldungen von Gongyou Machines Ltd.