Phoenitron Hold Announces 2010 Nine Months Results

Nov 11, 2010 22:00 JST

Source: Phoenitron Holdings Limited

HONG KONG, Nov 11, 2010 - (ACN Newswire) - Phoenitron Holdings Limited ("Phoenitron Hold" or together with its subsidiaries the "Group"; SEHK: 8066) (formerly known as "Cardlink Technology Group Limited"), 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 unaudited results for the 9 months ended 30 September 2010.

During the period under review, the Group has recorded a revenue of approximately HK$110.1 million, a rise of 8.1% over the corresponding period last year. Gross profit was HK$27.9 million. Profit attributable to equity holders was approximately HK$2.8 million. Basic earnings per share were 0.57 HK cents.

Since the Group entered the used automobile recycling business through its subsidiary Hota (USA) ("Hota") last year, Hota's plant in Zhangjiagang, China has been under construction during the review period. As a result, the Group's share of losses of Hota amounted to HK$2.7 million due to the initial construction costs and start-up operating expenses during this period. However, mass production for used-metal recycling is expected to start by end of 2010 and begin to contribute initial revenue to the Group.

Moreover, the Group has recently agreed to provide shareholder's Loan of USD8,500,000 to Hota to accelerate its development of used automobile parts recycling business. The loan will be used to finance Hota for setting up facilities and factories in Zhangjiagang and commencing its re-manufacturing of used parts of second-handed automobiles businesses in Zhangjiagang upon approval by the government.

Regarding the Group's smart card business, discounts have been offered to customers to boost the sales volume due to intense market competition. Increases in direct costs and a less favorable sales mix also affected the gross profit margin of the smart card business. The Group will continue to streamline its production and operations, including optimising internal resources, enhancing its cash management program, and negotiating with suppliers for better terms. Operating expenses will also be scrutinized to improve efficiency.

Ms Lily Wu, Chairman of Phoenitron, said, "Looking forward, we are confident that by focusing on the business of recycling used resources by capitalising on technology, the new business can generate better returns to our shareholders. We are also striving 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

Eric Liu
Tel: +852 2114 4901
Email: eric.liu@sprg.com.hk

Source: Phoenitron Holdings Limited
Sectors: Daily Finance