Greater China Precision Components Ltd.: 2010 Final Results

Greater China Precision Components Ltd. / Key word(s): Final Results

29.04.2011 / 09:00

GCPC / 2010 Final Results


- 2010 Revenues RMB 305.1 mn. (EUR 34.6 mn.)

- 2010 Net profit RMB 33.0 mn. (EUR 3.7 mn.)


SINGAPORE/HUIZHOU, 29 April, 2011: GCPC (ISIN SG9999005052 / WKN A0MZS3 /
Ticker 49G) publishes its final 2010 report and gives an outlook for fiscal
year 2011.

In fiscal year 2010 GCPC achieved sales of RMB 305.1 mn., an increase of
24.1% compared to  fiscal year 2009  (RMB 245.9 mn.). The increase can
mainly be attributed to a higher sales volume from existing customers.
Gross profits came in at RMB 65.9 mn. (FY 2009: RMB 64.8 mn.). Gross profit
margins were 21.6% compared to 26.3% in 2009. Decrease in gross profit
margins was mainly due to an increase in labor costs and a decrease in
average selling prices.

2010 net profits were RMB 33.0 mn. (Fiscal year 2009: RMB 31.8 mn.). The
increase in net profit was mainly due to a net gain from disposals as well
as fair value adjustments of financial assets.

GCPC reported a 2010 EPS of RMB 1.26 (Fiscal 2009: RMB 1.20).

For fiscal year 2010 the Board of Directors recommends to pay a final
dividend of RMB 0.30 per share.

Outlook

The globalization efforts of Chinese handset vendors, who are GCPC's major
customers, have had a positive impact on GCPC's revenues in 2010 and will
continue to do so in 2011. The intense competition within the handset
industry is expected to continue to put pressure on average selling prices.
Coupled with rising labor costs, GCPC expects gross margins to remain under
high pressure in the first half of 2011.

However, GCPC plans to focus more on middle to high end products in order
to alleviate the pressure of falling average selling price. This may lead
an increase of gross profit margins in the second half of 2011. GCPC has
already attracted international customers (such as Motorola and Amazon)
placing orders for high end products. In addition, GCPC's on-going pursuit
of other international handset vendors could eventually result in a direct
working relationship in the second half of 2011.

Consequently, H1 2011 net profits might be marginally lower than in the
corresponding period of 2010. However, GCPC remains cautiously optimistic
that revenues and net profits for the full year 2011 could still be better
than in 2010.

For detailed information on GCPC please visit www.greater-cpc.com.

The Board of Directors / Singapore, 29 April 2011

GCPC's key figures for 2010 at a glance (in RMB mn.):
(Conversion rate used is 1 EUR=8.8065 RMB per 31/12/2010) 

                                            2010        2009    Change %
-------------------------------------------------- ------- ------- ------
Sales                                  RMB 305.1       245.9        24.1
Earnings before interest and taxes (EBIT)   RMB 38.4    36.7         4.6
Net profit                              RMB 33.0        31.8         3.8
Basic earnings per share (EPS)          RMB 1.26        1.20         5.0

Gross profit margin                      %  21.6        26.3       -17.9
Net profit margin                        %  10.8        12.9       -16.3
Depreciation                            RMB 20.8        12.7        63.8
Capital expenditures                    RMB 30.4        96.2       -68.4

Number of employees (average)              2,200       2,008         9.6
Average number of shares (million)          26.3        26.4        -0.4

                                            2010        2009    Change %

Cash & cash equivalents                 RMB 43.0        30.5        41.0
Other current assets                   RMB 222.1       249.7       -11.1
Fixed Assets                           RMB 260.4       251.3         3.6
Current liabilities                     RMB 86.0       115.1       -25.2

*The calculation of the basic EPS for 2010 and 2009 is based on the
weighted average number of ordinary shares in issue of 26,302,752 and
26,420,581, respectively.

Financial Calendar
- Investor conference, Frankfurt, May 4, 2011
- Annual General Meeting, Huizhou, June 18, 2011
- Half year report 2011: Sept. 2, 2011 (www.greater-cpc.com)

Forward-looking statements:
This press release contains statements about future developments that are
based on currently available information and may involve risks and
uncertainties, the result of which may be that the actual results differ
from the forward-looking statements. Statements about future developments
must not be understood as guarantees. Future developments and results
rather depend on a variety of factors, they contain various risks and
imponderabilities and are based on assumptions that might turn out to be
incorrect. For example, these include unforeseeable changes of the general
political, economic, and social conditions.

About GCPC
GCPC (www.greater-cpc.com; ISIN: SG9999005052, Ticker: 49G) is one of the
leading one-stop providers of mobile handset casings in China. GCPC's
primary business is the manufacturing of spray painted mobile handset
casings. As a one-stop service provider, GCPC provides its customers with
services, such as product design development, molding and prototyping, raw
materials and components procurement, plastic injection, spray painting and
assembling services. Substantially all of its products are sold to
customers that are based in China, including electronics manufacturing
service providers, or EMS for international brands of mobile handset
original equipment manufacturers (OEMs). GCPC does not manufacture products
under its own brand. GCPC operates its business primarily through its
subsidiary, Green Precision Components (Huizhou) Co., Ltd in Huizhou City,
Guangdong Province, China.


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Language:    English                                                 
Company:     Greater China Precision Components Ltd.                 
             7 Temasek Boulevard #13-02 Suntec Tower One             
             038987 Singapur                                         
             Singapur                                                
Phone:       +65 6339 9866                                           
Fax:         +65 6332 1169                                           
E-mail:      investor@greater-cpc.com                                
Internet:    www.greater-cpc.com                                     
ISIN:        SG9999005052                                            
WKN:         A0MZS3                                                  
Listed:      Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart;  
             Open Market (Entry Standard) in Frankfurt               
 
 
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