JJ Auto AG
JJ Auto AG: Half-year results 2014 reflect positive business development
DGAP-News: JJ Auto AG / Key word(s): Half Year Results 28.08.2014 / 08:06 --------------------------------------------------------------------- H1 results 2014 JJ Auto AG: Half-year results 2014 reflect positive business development Berlin, August 28, 2014 - JJ Auto AG (together with its subsidiaries hereinafter "JJ Auto"), a dynamically growing manufacturer and supplier of automotive parts for commercial and heavy-duty vehicles in the Chinese market, today published its first interim report after the successful listing at the Frankfurt and Warsaw Stock Exchanges in June this year. The company was able to increase revenues and improve profitability in the first six months of the financial year. Compared to the same period last year, JJ Auto's revenues climbed by 7.1 per cent to 52.2 million Euros in the first half-year of 2014 (H1 2013: 48.7 million Euros). Calculated in the local currency RMB, revenue growth amounted to 10.6 per cent. The main reason for this increase were higher average selling prices especially in the segment "automotive tools and other parts", reflecting the higher demand for passenger cars in China. Revenues in this segment augmented by 41.9 per cent year-on-year accounting for 14.2 million Euros (H1 2013: 10.0 million Euros) or 27.1 per cent of JJ Auto's total group revenues. The major part of revenues was contributed by the segment "commercial vehicle fasteners", which contributed 49.0 per cent or 25.6 million Euros (H1 2013: 23.3 million Euros) to revenues in the first half-year of 2014. Revenues generated in the "heavy-duty machine parts" segment decreased to 12.4 million Euros (H1 2013: 15.3 million Euros) and therewith accounted for 23.7 per cent of total revenues. The decrease in this product segment was mainly due to delayed delivery to customers in the second quarter 2014 and will be recognised as revenues with a time lag in the third quarter 2014. Improved results and profit margins at all levels Gross profit for the period increased by 13.4 per cent to 12.3 million Euros (H1 2013: 10.9 million Euros) corresponding to a gross profit margin of 23.6 per cent (H1 2013: 22.3 per cent). This increase was the consequence of higher average selling prices, which led also to an 8.3 per cent growth in profit from operations (EBIT) amounting to 10.9 million Euros (H1 2013: 10.1 million Euros). The EBIT margin slightly improved by 0.2 percentage points to 20.9 per cent (H1 2013: 20.7 per cent). Net profit rose by 8.5 per cent to 8.2 million Euros (H1 2013: 7.5 million Euros), while the net profit margin amounted to 15.6 per cent (H1 2013: 15.4 per cent). Well prepared for future investments In the first half-year of 2014 the increased profits from operations were the main factor that led to a 15.7 per cent growth of shareholders' equity from 57.4 million Euros as at December 31, 2013 to 66.4 million Euros as at June 30, 2014. Accordingly, the equity ratio improved to 83.4 per cent as at June 30, 2014 (December 31, 2013: 82.5 per cent). Further progress expected With regard to the steadily growing automotive industry in China and the trend that more and more international automotive manufacturers are investing in the Chinese market, JJ Auto anticipates a growing demand for automotive parts in the future. As the products of JJ Auto are well accepted in the market, the company plans to expand its production capacities in the next few months in order to be well prepared for the higher demand. Furthermore, the automotive industry will benefit from declining steel prices. Based on this positive market scenario assumption, the management of JJ Auto expects to achieve a revenue growth of above 15 per cent in RMB terms for the full financial year 2014. The gross profit margin presumably will be maintained at least at 23 per cent while the EBIT margin is expected to be approximately 21 per cent. With the successful listing at the Frankfurt and Warsaw Stock Exchange we have reached a strategic milestone in the company's history. We are very confident that we will be able to maintain our profitable growth strategy and to achieve the targets we have set ourselves. Thus, we plan to invest in our research and development as well as in new machineries to increase our production capacity from currently around 82,000 to up to 130,000 tons per annum", says Clement Hoo, CFO of JJ Auto AG. The full half-year report 2014 of JJ Auto AG is available on the company's website under: http://www.jj-auto.de/en/investor-relations/publications/reports.html About JJ Auto JJ Auto is one of the leading manufacturers and suppliers of high-quality steel automotive parts, tools and heavy-duty machine parts such as nuts, bolts, wrenches, sleeves, track pins and bushings and track parts in China. As a supplementary business JJ Auto is also involved in the trading of automotive tools and parts. Founded in 1998, JJ Auto possesses extensive industry experience and technology know-how. Currently, JJ Auto exclusively sells its products in the Chinese market directly to distributors and direct sales customers, such as axle factories. The company's customer base consists of around 89 automotive parts distributors, which further sell JJ Auto's products to end users such as axle factories, repair shops and OEMs. The production facilities of JJ Auto, occupying a site area of 26,089 square metres, are located in Quanzhou City in the south-eastern Chinese province Fujian. In 2013 the production volume amounted to 83.51 thousand tons. At the end of 2013 JJ Auto employed more than 600 employees. For further information, please contact: Kirchhoff Consult AG Anja Ben Lekhal Tel: +49(0) 40 609 186 55 Mail: anja.benlekhal@kirchhoff.de Or visit http://www.jj-auto.de/en Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect JJ Auto's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of JJ Auto's forward-looking statements are proving to be incorrect, JJ Auto's actual results may be materially different from those expressed or implied by such forward-looking statements. JJ Auto does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. --------------------------------------------------------------------- 28.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: JJ Auto AG Unter den Linden 14 10117 Berlin Germany Phone: +49 (0)30 72616 8000 Fax: +49 (0)30 72616 8001 E-mail: jj-auto@kirchhoff.de Internet: www.jj-auto.de ISIN: DE000A1TNS70 WKN: A1TNS7 Listed: Regulierter Markt in Frankfurt (General Standard) Notierung vorgesehen. / Intended to be listed. End of News DGAP News-Service --------------------------------------------------------------------- 284262 28.08.2014
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