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http://www.hkexnews.hk/listedco/listconews/sehk/20110826/LTN20110826037.pdf
MANAGEMENT DISCUSSION AND ANALYSIS
Financial Review
Revenue
For the six months ended 30 June 2011, the Group recorded revenue of approximately
RMB945.94 million, representing an increase of approximately 62.6% as compared to
the corresponding period in 2010. CNC machine tools remained the major source of the
Group's revenue. During the period under review, sales revenue of CNC machine tools
business amounted to approximately RMB769.84 million, representing an increase of 62.3%
as compared to the corresponding period in last year. Revenue of CNC machine tools
accounted for approximately 81.4% of the Group's total revenue. On the other hand, sales
revenue of the Group's forklift trucks business during the period under review was also
increased by 122.8%, as compared to corresponding period in last year, to approximately
RMB135.41 million and approximately 14.3% of the Group's total revenue. Moreover, sales
revenue of parking garage structures amounted to approximately RMB40.70 million during
the period under review, representing a decrease of approximately 13.0% as compared
to corresponding period in last year and accounted for approximately 4.3% of the total
revenue.
Gross
MANAGEMENT DISCUSSION AND ANALYSIS
Financial Review
Revenue
For the six months ended 30 June 2011, the Group recorded revenue of approximately
RMB945.94 million, representing an increase of approximately 62.6% as compared to
the corresponding period in 2010. CNC machine tools remained the major source of the
Group's revenue. During the period under review, sales revenue of CNC machine tools
business amounted to approximately RMB769.84 million, representing an increase of 62.3%
as compared to the corresponding period in last year. Revenue of CNC machine tools
accounted for approximately 81.4% of the Group's total revenue. On the other hand, sales
revenue of the Group's forklift trucks business during the period under review was also
increased by 122.8%, as compared to corresponding period in last year, to approximately
RMB135.41 million and approximately 14.3% of the Group's total revenue. Moreover, sales
revenue of parking garage structures amounted to approximately RMB40.70 million during
the period under review, representing a decrease of approximately 13.0% as compared
to corresponding period in last year and accounted for approximately 4.3% of the total
revenue.
Gross
27/8 2011 22:01 le 045738 Prospects
The risk of further volatility in the global economy still remains. In respect of the economy
of China, the China Government is trying to strike balance amongst growth, inflation and
economic transition. Provided that the inflation in China could be under control in the last
quarter of 2011, those austerity measures will then be loosened which will further facilitate
the capital investment. On the other hand, due to increasing labor shortage in China,
manufacturers are prompted to use more automatic equipment such as CNC machines,
which will promote continuous growth of the Group's CNC machine tools business.
China is the largest machine tools consuming country. The Group will continue to expand
its production capacity and enhance its production efficiency, as well as strengthen the
research and development capabilities of its CNC machine tools products, in order to meet
the robust demand from the domestic market and provide high quality CNC machine tools
to the customers.
Looking forward, the Group will continue to participate actively in machine tools fairs
in China, and enhance the promotion of the Group's CNC machine tools products so as
to solidify the Group's market share in China. On the other hand, the management will
continue to looking for appropriate investing and acquisition activities so as to increase
the competitive edge of our Group. The Group is committed to becoming an international
CNC machine tools manufacturer. The management believes that with its extensive sales
network, advanced technology and manufacturing facilities as well as brand effect, the
Group is capable of meeting customers' different needs. The management therefore has
optimistic outlook for the future growth of the Group and will strive to bringing favorable
returns to the shareholders of the Company.
Liquidity and financial resources
The working
The risk of further volatility in the global economy still remains. In respect of the economy
of China, the China Government is trying to strike balance amongst growth, inflation and
economic transition. Provided that the inflation in China could be under control in the last
quarter of 2011, those austerity measures will then be loosened which will further facilitate
the capital investment. On the other hand, due to increasing labor shortage in China,
manufacturers are prompted to use more automatic equipment such as CNC machines,
which will promote continuous growth of the Group's CNC machine tools business.
China is the largest machine tools consuming country. The Group will continue to expand
its production capacity and enhance its production efficiency, as well as strengthen the
research and development capabilities of its CNC machine tools products, in order to meet
the robust demand from the domestic market and provide high quality CNC machine tools
to the customers.
Looking forward, the Group will continue to participate actively in machine tools fairs
in China, and enhance the promotion of the Group's CNC machine tools products so as
to solidify the Group's market share in China. On the other hand, the management will
continue to looking for appropriate investing and acquisition activities so as to increase
the competitive edge of our Group. The Group is committed to becoming an international
CNC machine tools manufacturer. The management believes that with its extensive sales
network, advanced technology and manufacturing facilities as well as brand effect, the
Group is capable of meeting customers' different needs. The management therefore has
optimistic outlook for the future growth of the Group and will strive to bringing favorable
returns to the shareholders of the Company.
Liquidity and financial resources
The working
