Midas Strengthens its Foothold in China's Power Industry with New Contracts

Midas Holdings Limited announces that its subsidiary, Jilin Midas Aluminium Industries Co., Ltd has strengthened its foothold in China's power industry, having secured two new contracts worth a combined RMB123.4 million, for the supply of aluminium alloy tubings.

Awarded by leading power industry players, Xi'an XD Switchgear Electric Co., Ltd. and Xi'an XD High Voltage Apparatus Co. Ltd., the two contracts are valued at RMB100.3 million and RMB23.1 million respectively.

Mr Patrick Chew, CEO of Midas, said, "Midas has made good progress this year. The latest contracts not only attestto customers' confidence in our quality products, but also demonstrate our versatility in product diversification and growing our core aluminium alloy business beyond its traditional stronghold in the PRC railway sector."

Delivery for the abovementioned orders are expected to take place between 2012 and 2013. The contracts are expected to contribute positively to the Group's financial performance for the year ended December 31, 2012 and 2013.

In addition, the Group is also pleased to add that Jilin Midas has signed a Strategic Cooperation Agreement with Xi'an Switchgear Electric. The tenure of the agreement is for a one-year period, with an option to renew for another year upon expiry. Under the terms of the agreement, Jilin Midas will continue to enjoy preferred supplier status as long as Jilin Midas upholds its widely recognised high standard of manufacturing and its quality products are priced competitively.

In addition, the agreement will also facilitate the exchange of information relating to aluminium alloy specification requirements in the PRC power industry, as well as Jilin Midas' manufacturing capabilities and technologies.

"We are pleased that a leading player like Xi'an Switchgear Electric has placed its trust and confidence in Midas through the signing of a Strategic Cooperation Agreement. Moving forward, we will continue to forge close working relationships with customers and capitalise on viable market opportunities to drive our future development," Mr Chew added.