China Specialty Glass AG: Further positive development in the first six months of 2013
H1 Report 2013
- Significant revenue growth of 36.0 per cent to 65.8 million Euros
- Strong EBIT of 26.8 million Euros and EBIT margin of 40.7 per cent
- Guidance for full-year 2013 confirmed
The management of China Specialty Glass AG ("CSG"), holding company of one of the largest producers of security glass in China, is fully satisfied with its financial results of the first six months of 2013. With an increase of revenues by 36.0 per cent to 65.8 million Euros (H1 2012: 48.4 million Euros) in the first half-year of 2013, the Group is in line with its growth strategy. This significant revenue growth was possible due to an increased sales quantity in all product segments in the first six months of 2013. As in the past, the bank security glass contributed the major part to total revenues with 29.9 million Euros (H1 2012: 19.9 million Euros) or 45.4 per cent of total sales, while automotive glass accounted for 22.1 million Euros (H1 2012: 20.0 million Euros) or 33.6 per cent of total sales. CSG's construction glass generated revenues of 13.8 million Euros (H1 2012: 8.5 million Euros) and thus had a share of 21.0 per cent of total revenues.
Excellent profit margins
As a result of the strong sales in all CSG businesses, gross profit grew by 35.8 per cent from 23.2 million Euros to 31.5 million Euros year-on-year. Gross profit margin remained stable at 47.9 per cent compared to the first half-year of 2012.
EBIT showed an even more positive development and rose significantly from 4.2 million Euros to 26.8 million Euros year-on-year resulting in an EBIT margin of 40.7 per cent(H1 2012: 8.7 per cent). Without considering the one-off effect arising from the initial recognition of the convertible loan in the first six months of 2012, EBIT would have grown by 89.9 per cent.
In H1 2013 net profit reached 20.3 million Euros and the net profit margin amounted to 30.8 per cent.
Furthermore, the Group is financially well positioned for future investments disposing of a cash position of 115.8 million Euros (H1 2012: 74.4 million Euros) and a solid equity ratio of 67.9 per cent (H1 2012: 64.7 per cent).
Guidance for the full-year 2013 confirmed
CSG confirms its outlook for the full-year 2013 published in the first quarterly report 2013. Given the growth opportunities for CSG Group and its market leading position in China, the management still expects revenues to increase by around 40 per cent and net profit to grow at the same pace compared to 2012.
Following its growth strategy, CSG plans to further increase its product sales by the expansion of its sales network in China and abroad. The enhanced production capacity that is needed will be achieved through the new laminated and thermal pre-stressed glass production lines in Sichuan Province as well as by the expansion of the existing production plant in Guangzhou. Phase I of the Sichuan plant has started operation in 2013. Phase II of the Sichuan project is still under construction and is progressing according to plan.
China Specialty Glass AG
China Specialty Glass AG is the German holding company of the China Specialty Glass Group. The Group develops, produces and sells specialty glass. The Group's main products, which are all sold under the brand name "Hing Wah", are, on the one hand, for safety glasses such as bullet-proof, bomb-proof and burglar-resistant glasses and, on the other hand, for constructional glasses including laminated, tempered and fire-resistant glasses, hollow glass blocks and electrically-controlled colour-changing glass. The Group is one of the leading companies in China in the fields of safety glass for banks and the automobile industry, both in terms of production output and market share.
The shares of China Specialty Glass AG are listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN DE000A1EL8Y8 / SIN A1EL8Y / Ticker 8GS).