23 August 2011, Hong Kong) China Automation Group Limited ("China Automation Group" and its subsidiaries, collectively, the "Group", HKSE stock code: 0569), one of the largest integrated solution providers of railway signaling systems in the PRC, and the largest integrated solutions provider of safety and critical control systems in the petrochemical industry in the PRC, is pleased to announce its interim results for the six months ended 30 June 2011.
During the reporting period, the turnover of the Group grew 42.0% to RMB1,072.4 million (1H2010: RMB755.0 million). Gross profit increased 40.4% to RMB425.5 million (1H2010: RMB303.1 million). Profit attributable to equity holders rose 7.8% to RMB153.1 million (1H2010: RMB142 million). Basic earnings per share increased 6.6% to RMB14.99 cents (1H2010: RMB14.06 cents). The Board of Directors declared an interim dividend of HK2 cents per share.
The two core business segments of the Group, namely the petrochemical business and the railway business, both recorded robust organic growth for the first half of 2011. Turnover of petrochemical business rose by 39.9% to RMB553.2 million while turnover of railway business increased 44.4% to RMB519.2 million.
During the reporting period, the Group maintained its leading position in the petrochemical and railway industries. As at 30 June 2011, the Group's cumulative installation numbers of safety and critical control systems increased to 2,027 and 1,363 sets for petrochemical and railway industries respectively. Meanwhile, the Group’s continued R&D efforts has yielded results, its newly developed products of iMEC (Intelligent Machinery Expert Control System), iSOM(Intelligent Safety Operation Management System), and ITCC-OTS(Operator Training System) has begun to contribute revenue.
In addition, the Group has taken actions to expand its product range both in petrochemical and railway segments through M&A. The Group's products now extended from safety and critical control systems to control valves in petrochemical industry, and from signaling systems to train traction equipment and control systems in railway industry. This business expansion enables the Group to enter into markets with enormous opportunities both for control valves and train traction equipment and control systems. It is also a strategic move for the Group to become a leading automation company in China for the long run. Moreover, this business expansion will offset and minimize the impact of slowdown in railway projects on the Group.
Mr. Xuan Rui Guo, Chairman and Executive Director of the Group, said, "We are confident for our future market driven by the rapid economic development of China. We understand there is uncertainty regarding the national railway projects in the short term. However, we are optimistic in the long run. We will strive to maintain strong growth and consolidate our leading market position. By focusing on the Group's core business in petrochemical and railway industries, we aim to transform into a leading automation company with comprehensive and integrated business including safety and critical control system, control valve, signaling system, and train traction equipment and control system."
"Looking ahead, the Group will continue to enhance its competitiveness through expanding its product range. Attention will be given to the integration of our newly acquired companies. At the same time, the Group will seek M&A targets in a prudent manner to generate synergies with the Group's existing businesses and maximize returns for our shareholders," Mr. Xuan concluded.
Source:todayir