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China Specialty Glass continues successfully on its growth path
- Significant revenue growth of 35.8 per cent to 108.8 million Euros
- Strong EBIT of 44.3 million Euros and increased EBIT margin of 40.7 per cent
- Net profit went up to from 8.6 million Euros to 33.9 million Euros
- On track to achieve full year 2013 guidance
China Specialty Glass AG ("CSG"), holding company of one of the largest producers of security glass in China, continued to show excellent financial results in the first nine months 2013. Pursuant to its growth strategy, CSG's revenues increased significantly by 35.8 per cent to 108.8 million Euros (9M 2012: 80.2 million Euros). Main reasons for this positive development were the higher sales quantity in all product segments as well as an increased average unit selling price in the third quarter of 2013. Revenues of bank security glass amounting to 49.7 million Euros (9M 2012: 33.0 million Euros) still contributed with a share of 45.6 per cent (9M 2012 41.1 per cent) the major part to total revenues. Automotive security glass generated revenues of 36.5 million Euros (9M 2012: 32.0 million Euros) and thus had a part of 33.5 per cent of total revenues, while construction glass accounted with 22.7 million Euros (9M 2012: 15.2 million Euros) for 20.8 per cent of total revenues.
The higher sales in all product segments resulted in a gross profit increase by 41.0 per cent to 52.8 million Euros (9M 2012: 37.4 million Euros). The overall gross profit margin could also be slightly improved and amounted to 48.5 per cent (9M 2012: 46.8 per cent).
Due to a one-off impact on earnings arising from the initial recognition of the convertible loan in the first nine months of 2012, EBIT recorded an extraordinary positive development rising by 194.9 per cent from 15.0 million Euros to 44.3 million Euros year-on-year. This corresponds to an EBIT margin of 40.7 per cent (9M 2012: 18.7 per cent). Without considering the negative one-off effect in the previous year period, EBIT would have grown from 27.5 million Euros by 61.1 per cent to 44.3 million Euros.
For the same reason net profit climbed significantly to 33.9 million Euros (9M 2012: 8.6 million Euros), representing a net profit margin of 31.1 per cent.
With a strong cash position of 115.1 million Euros (9M 2012: 82.0 million Euros) and an equity ratio of 68.5 per cent (9M 2012: 66.4 per cent) the Group still is financially well positioned for future investments.
Further growth milestones
In line with its growth strategy, CSG will continue to increase its product sales by enhancing its sales network in China and abroad. Furthermore, the Group will continue to expand its production capacities at the new production site in Sichuan as well as the in the existing plant in Guangzhou. After having completed Phase I of the Sichuan plant, phase II is still under construction and is expected to go into full operation in 2016. According to a non-binding notification of the Guangzhou government, CSG may need to relocate its premises by 2016. Although no official decision has been made, CSGs management will start browsing the market for a suitable piece of land in the suburban areas of Guangzhou in 2014.
On track to achieve full year 2013 guidance
CSG is on track to achieve its guidance for the full year 2013, which anticipates an increase of around 40 per cent in revenues and net profit.
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