(Hong Kong, 31 August 2011) Goodtop Tin International Holdings Limited (00195.HK) announced today its interim results for the six months ended 30 June 2011 (“the period”). The Company’s unaudited consolidated revenue for the period was HK$311.9 million, representing a year-on-year hefty increase of 244.3%. The overall increase in sales was attributed by a HK$199 million contribution from the newly acquired tin mining business, a 4.4% increase in the manufacturing segment and a 63.7% increase in the trading segment as compared with the same period last year. The Company also strengthened its profit base so much so that its gross profit margin increased from 12.2% to 14.6%. The improvement was brought about by the acquisition of tin projects Parksong Mining and Resource Recycling Limited (“Parksong Mining”) in Tasmania, Australia. Parksong Mining contributed approximately HK$46.9 million of the Group’s segment profit for the six months ended 30 June 2011.However, due to the impact of non-operating share-based payment expenses incurred by the issuance of share options, the Company recorded an operating loss of HK$34.5 million in the period. If the impact of share-based payment expenses was excluded, the Company would have posted a net profit of approximately HK$24.2 million.
“Opportunities and challenges for the Company abounded in the first six months of this year. After much in-depth evaluation and comprehensive research, we formally forged into the non-ferrous metal industry in March by acquiring the entire interest of Parksong Mining. Since then, we have successfully become a non-ferrous metal resource enterprise focusing on tin mining and sales. We believe that the re-positioning of our core business will bring better prospects to the Company and improve shareholder values,” said Mr. Cheng Hauyan, Chairman of Goodtop Tin.
Currently, the Company’s income is mainly generated from the production and sales of tin mines in Australia. The Company will continue to engage in the insulation products business through its subsidiary Vitar Insulation Manufacturers Limited (“Vitar”), which has over 30 years of experience in the manufacturing of high-temperature electric wires, silicone electric wires, tubes and mica insulation products, all of which are found in commonplace items such as electric motors, adaptors and household appliances.
Tin prices have increased continuously, thanks to the scarcity of tin resources and increased tin consumption both globally and in China. To capture market opportunities available in the non-ferrous metal sector and to sustain future development momentum, the Company has shifted its business focus to specialize in the mining and sales of tin. It has acquired Parksong Mining and commenced tin mining in Tasmania with its joint venture partners so as to capture the enormous development prospect of the mining industry.
The Company also holds 50% interests in Renison mine, which has been one of the major hard rock tin mines in the world and the largest tin mine in Australia, as well as the Mount Bischoff open pit tin mining project and the Rentails tailing processing project in Australia.
“Consequent to the successful business transformation, Goodtop Tin is now endowed with projects of high quality and potential, enormous resource advantages, advanced tin mining technologies and an experienced management team, which together will provide strong impetus to growth. Looking forward, we will focus on the non-ferrous metal industry, capture market opportunities, accelerate our pace of development, enhance the Company’s value and realize a stable growth of income and profit,” Mr. Cheng noted further.