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Phoenitron Hold Announces 2010 Annual Results, Net Profit Surges 31.0% to HK$13.5 Million
Used Automobile Resources Recycling Business to Start Overseas Operation by End of March
HONG KONG, Mar 22, 2011 - (ACN Newswire) - Phoenitron Holdings Limited ("Phoenitron Hold" or together with its subsidiaries the "Group"; stock code: 8066), a world-leading one-stop smart card solutions provider and a pioneer in the imported used automobile resources recycling business within China, has announced today its results for the year ended 31 December 2010.
During the period under review, the Group's turnover grew by 7.8% to HK$152.6 million. Gross profit was HK$40.2 million. Profit attributable to equity holders was approximately HK$13.5 million, a surge of 31.0% over last year. Basic earnings per share were 0.537 HK cents (2009: 0.439 HK cents).
Ms. Lily Wu, Chairman of Phoenitron Hold, said, "We are very pleased that despite the Group faced a difficult and competitive business environment in year 2010, we have managed to achieve a fifth straight year of record turnover in the core business of manufacturing and sales of smart cards and plastic cards. Moreover, our automobile resources recycling plant is now already in its final phase of construction and will be a major growth driver for the Group in 2011."
In September 2010, the Group completed subscription of additional Series A Preferred Shares of Hota (USA) Holding Corp. ("Hota"), allowing it to become Hota's single largest shareholder and develop used automobile resources recycling business in full strength. Hota's plant in Zhangjiagang, the PRC has begun equipment installation and the Group expects that it will start operations with initial revenue contributions by the second quarter of 2011. Moreover, Hota's overseas operations will also begin by the end of March 2011. It will mainly engage in scrap automobile purchases and initial processing of selected parts. During the review year, the Group's share of losses of Hota (USA) and its subsidiaries amounted to HK$0.35 million, which was mainly due to its start-up operating expenses.
Regarding its smartcard business, Phoenitron Hold has increased its market share in Asia and China through greater volume, thanks to its highly automated smart card production facilities, and strong sales and marketing teams in Hong Kong, Shenzhen and Beijing which dedicated their efforts to expand the Group's customer base. As a result, Asia became the largest market of the Group, with sales up by 14.0% to account for 36.3% of the Group's turnover while sales from China rose by a significant 21.8%, accounting for 34.1% of turnover. The European market accounted for 29.1% of turnover.
Ms. Wu concluded, "Among the first-comers of the industry, we will seize the opportunity to expand market share within the automobile recycling industry in China. We believe that Hota's 'green' business would be a promising profit driver of the Group. Moreover, we will strive to maintain steady development of our smart card solutions business through continuous improvement of our competitiveness."
Contact:Strategic Financial Relations Limited
Heidi So
Tel: +852 2864 4826
Email: heidi.so@sprg.com.hk
Jover Wong
Tel: +852 2114 4955
Email: jover.wong@sprg.com.hk
Source: Phoenitron Holdings Limited
Sectors: Cards & Payments, Daily Finance
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