PANASIALUM announces 2014 Interim Results

PanAsialum Holdings Company Limited (stock code: 2078), an aluminium products manufacturer based in Guangdong Province, PRC today announced its unaudited interim results for the six months ended 31 March 2014 (the "Current Period").

The first half of the current financial year was a challenging period for PanAsialum. The Group recorded a substantial loss on purchase contracts on aluminium ingots attributable to the weak performance of the Chinese economy. In addition, the widening price gap of aluminium ingots between China and overseas benchmarks and weak orders for products with higher profit margins adversely affected the Group's profit margin. Moreover, the significant downward adjustment of the Australian dollar and increased head count and preparation costs needed for the relocation of the Group's production facilities to Nanyang City, Henan Province, PRC ("Nanyang") also contributed to the negative performance.

During the Current Period, the Group managed to increase its revenue by 11% to HK$1,432 million (for the six months ended 31 March 2013 ("2013 Period"): HK$1,293 million) due to the continued dedication of the employees in difficult times. Nevertheless, the overall challenging business environment generated a negative impact on the Group's performance. Gross profit amounted to HK$248 million (2013 Period: HK$388 million); gross profit margin was 17% (2013 Period: 30%). Profit attributable to equity owners of the Group decreased 52% to HK$120 million (2013 Period: HK$249 million). Basic earnings per share amounted to 10 HK cents (2013 Period: 25 HK cents).