http://www.hkexnews.hk/listedco/ ... TN20121114477_C.pdf
COMMENTARY ON THE STATEMENT OF COMPREHENSIVE INCOME
Our total revenue decreased by approximately RMB56.6 million or 21.8% from RMB259.3 million in 3Q2011 to RMB202.7 million in 3Q2012. Revenue at our Aluminium Alloy Extruded Products Division decreased by approximately RMB56.7 million or 22.8% from RMB248.3 million in 3Q2011 to RMB191.6 million in 3Q2012. Our Aluminium Alloy Extruded Products Division contributed approximately 94.5% of total revenue as compared to approximately 95.8% for 3Q2011.
我們的總營業額由二零一一年第三季約人民幣259,300,000元減少約人民幣56,600,000元或21.8%，至二零一二年第三季的人民幣202,700,000元。我們鋁合金擠壓產品部的營業額由二零一一年第三季約人民幣248,300,000元減少約人民幣56,700,000元或22.8%，至二零一二年第三季的人民幣191,600,000元；而其貢獻佔總營業額約 94.5%，而二零一一年第三季則約佔 95.8%。
The table below shows the revenue segmentation by end usage at our Aluminium Alloy Extruded Products Division for the three months ended 30 September 2012.
Aluminium Alloy Extruded Products Division
Revenue contributions for the “Others” segment in the Aluminium Alloy Extruded Products Division comprised mainly of the supply of aluminium alloy rods and other specialized profiles for industrial machinery.
The Group’s gross profit margin for 3Q2012 was 31.5% versus 33.5% in 3Q2011. This was due to lower gross profit margin at our Aluminium Alloy Extruded Products Division of 32.1% in 3Q2012 as compared to 34.3% in 3Q2011. The lower gross profit margin came about from an increase in per unit production cost due to lower utilisation of production capacity.
Other operating income comprised mainly interest income and disposal of scrap materials at our Aluminium Alloy Extruded Products Division.
Selling and distribution expenses were higher by RMB1.3 million in 3Q2012 as our sales team stepped up our marketing efforts which resulted in increases in sales and marketing expenses including travelling and entertainment expenses as well as increased in transportation costs.
Administrative expenses increased by about RMB6.2 million in 3Q2012 mainly due to increase in payroll costs, depreciation, travelling and utilities expenses as compared with 3Q2011.
Finance costs comprised interest for bank borrowings, bank charges and financing costs relating to discounted notes receivables. Finance costs increase mainly due to higher bank borrowings. Approximately RMB7.6 million (3Q2011: RMB2.7 million) of the interest on bank borrowings that are used to finance the construction of property, plant and equipment for our new production lines were capitalized
融資成本包括銀行借款利息、銀行收費及應收貼現票據的成本。融資成本的增加主要因為銀行借款較高。約人民幣7,600,000元 (二零一一年第三季: 人民幣 2,700,000元) 來自我們的新生產線建設的物業、廠房及設備融資的銀行借款利息被資本化。
The Group share of loss from its associated company, Nanjing SR Puzhen Rail Transport Co. (“NPRT”), is approximately RMB7.0 million in 3Q2012. This is due mainly to fewer train cars delivered to its customers during this period.
As a result of lower profits in 3Q2012 and concessionary tax rates which partially offset the provision of withholding taxes arising from dividends payable by our PRC subsidiary to the holding company, income tax expense decreased by about RMB8.2 million. Our Jilin Aluminium Alloy Extruded Products Division qualified as high tech enterprise and was taxed at a concessionary rate of 15% for three years with effect from the financial year of 2011.
由於二零一二年第三季溢利減少及享有優惠稅率，在部份抵銷了有關中國的附屬公司向控股公司預提應付股息所產生的預扣稅後，所得稅開支減少約人民幣 8,200,000 元。鋁合金擠壓產品部符合高新技術企業的資格從二零一一年度起享有優惠稅率15% ，為期三年。
3Q2012 ended with net loss of approximately RMB6.5 million.
COMMENTARY ON THE STATEMENTS OF FINANCIAL POSITION
Property, plant and equipment increased due to additions made to machinery and infrastructure development for:-
1. the fifth extrusion production lines and downstream processing fabrication lines at our Jilin Aluminium Alloy Extruded Products Division;
2. construction of new plant in Luoyang City; and
3. construction of new plant for Jilin Midas Light Alloy Co., Ltd. (“JMLA”)
3. 吉林麥達斯輕合金有限公司(「吉林輕合金」) 的新廠房建設。
As a result of a slowdown in the PRC railway industry, inventories have increased by RMB104.1 million due to slower delivery.
Trade and other receivables increased by about RMB245.0 million. This is mainly due to slower payments from our major customers as a result of the slowdown in the PRC railway industry.
The table below shows the breakdown of Trade and Other Receivables:
30 September 2012
31 December 2011
Increase / (Decrease)
Deposits and prepayments
Notes Receivables 應收票據
In 2011, the PRC railway industry has been affected by several incidents. These have negative impacts on our major customers. They may further delay payments to their suppliers. Therefore, our trade receivables turnover days may increase in the forthcoming quarters. However, we remain confident because of the following reasons:
(a) Railway projects are PRC strategic projects and will continue to move ahead.
(b) Our major customers are major PRC state enterprises. We have confidence in their ability and credibility.
Trade and other payables increased by about RMB104.1 million due mainly to slower payment to our suppliers.
Net bank borrowings increased by RMB297.4 million mainly due to increase in loans for working capital and purchase of plant and machineries.
COMMENTARY ON THE CONSOLIDATED STATEMENT OF CASH FLOWS
During the quarter under review, payments made for property, plant and equipment in respect of our fifth production line, downstream processing fabrication machinery and our new plant in Luoyang Midas and Jilin Midas Light Alloy Co., Ltd came to RMB207.8 million. Net cash used in operating activities is approximately RMB50.3 million mainly due to increase in trade and other receivables as well as increase in inventories. Nevertheless we have net increase in cash and cash equivalents due to the net increase of bank borrowings of RMB297.4 million and investments received from Jilin Kaitong Engineering Co. Ltd, of about RMB285.4 million for a stake in JMLA which resulted in cash and cash equivalents balance of RMB820.6 million as at 30 September 2012.
於回顧季度， 我們就第五條生產線及下游加工線購買物業、廠房及設備、為洛陽麥達斯及吉林輕合金有限公司建設新廠房作出付款約人民幣 207,800,000元。經營活動所用的現金淨額約人民幣 50,300,000元，主要由於貿易及其他應收款項增加及存貨上升。然而，現金及現金等價物錄得淨增加，主要由於銀行貸款淨額上升人民幣297,400,000 元，及從吉林凱通工程有限公司取得其為投資於吉林輕合金股權的人民幣285,400,000元。因此，於二零一二年九月三十日，現金及現金等價物的結餘為人民幣820,600,000元。
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results
10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months
The PRC Government continues to demonstrate its commitment to expand China’s rail transportation network, with the Ministry of Railway having recently announced an additional upward revision for total planned fixed assets investments in 2012 to approximately RMB630 billion, of which approximately RMB516 billion is planned for investments into railway infrastructure. These planned investments are part of the government’s “Twelfth Five-Year Plan” (2011-2015) to enhance China’s infrastructure. In addition, the PRC metro sector is likely to grow further as the National Development and Reform Commission had announced in September that it has approved project plans and feasibility studies for 25 metro projects with estimated investments valued at over RMB700 billion.
中國政府仍繼續展示其致力於拓展中國鐵路行業的承諾，鐵道部最近公佈將再度上調二零一二年總規劃固定資產投資額至人民幣6,300 億元，其中約人民幣5,160 億元將作為鐵路基礎建設投資。這些規劃投資是政府「十二五規劃」(二零一一年至二零一五年)促進中國基礎建設的一部分。此外，受惠於國家發展和改革委員會在九月份宣佈其批准了25項總價值約人民幣7,000 億元的城軌專案及城市軌道交通建設規劃，中國的城軌行業預計將進一步發展。
Given the recent upward revisions in railway investments, the Group remains cautiously optimistic on the outlook of China’s railway industry over the mid to long-term as the development of the PRC railway network remains an integral component of the country’s economic growth strategy. Railway transportation is also the most efficient and affordable means of transportation in the PRC. We will continue to monitor developments in the PRC railway sector, and to grow other product segments and tapping opportunities in the export markets.