Da Ming posts half year profit at RMB97.6mn

The group enhance processing facilities and seizes market opportunities to strengthen industry leadership.

Da Ming International Holdings Limited (“Da Ming International”), primarily engaged in processing and logistic services within China's manufacturing sector, announced its unaudited interim results for the six months ended 30 June 2011.

The Group’s revenue increased by 41% to approximately RMB5,742 million. The rise was mainly due to the sales volume increased to 266,970 tons and average selling price to RMB21,508 per ton (2010: RMB18,581 per ton). Gross profit climbed to approximately RMB236 million for the period under review due to the greater sales volume and the rise in processing fee per ton coupled with the increased demand in in-depth processing services from its customers. The processing multiple rose to 1.31 while gross profit per ton increased to RMB885. Profit attributable to equity holders of the Company reached RMB97.6 million, according to a Da Ming report.

As at 30 June 2011, the total assets of the Group amounted to approximately RMB3,893 million and net cash amounted to approximately RMB127 million. In order to retain cash for future business development, the Board did not recommend the payment of interim dividends, according to a Da Ming report.

Mr Zhou Keming, Chairman of Da Ming International said, “After years of development, Da Ming International has become a well-reputed and sizeable enterprise which engaged in stainless steel processing, distribution and logistics in China. According to information published by the Stainless Steel Division of the Metallic Materials Distribution Association of China, the Group was once again ranked No.1 in the ranking of stainless steel processors and re-sellers in 2010. After the installation of more sophisticated equipment and the development of advanced processing techniques, the Group has commenced processing services to high-end customers in the chemical tanker manufacturing, wind power station construction and liquefied natural gas (LNG) storage facility production in 2011. The Group achieved a satisfactory growth by fully capitalising on its unique business model and cost advantages”.

Looking ahead, Mr Zhou said, “Da Ming will benefit from the recent growing China economy. In pursuing rapid growth, we are also managing our business development in a prudent manner to strike a balance between meeting our strategic targets and creating value for shareholders, while striving to maintain our leadership in the industry”