HONG KONG, Aug. 22, 2011 /PRNewswire-Asia/ -- COSTIN New Materials Group Limited ("COSTIN" or the "Company", together with its subsidiaries, the "Group", stock code: 2228), which is principally engaged in the research and development, production and sales of non-woven materials and recycled chemical fibres, is pleased to announce its interim results for the six months ended 30 June 2011.
During the Reporting Period, the Group achieved turnover up approximately 54.3% to approximately RMB650.7 million, which was mainly attributable to an increase in the overall selling price of the products, and growth in the sales quantities of non-woven materials and recycled chemical fibres. Gross profit increased 39.0% from the same period of 2010 to approximately RMB203.5 million. Profit attributable to owners of the Company rose 32.7% to approximately RMB128.9 million. Basic earnings per share was RMB16.11 cents. The Board recommends the payment of an interim dividend of HK$3.5 cents per share for the Reporting Period.
During the Reporting Period, the turnover of non-woven fabrics and recycled chemical fibers reached RMB508.4 million and RMB141.8 million, respectively, representing increases of 53.9% and 55.1% over the same period of 2010.
In July 2011, the Company issued US$30,000,000 convertible bond to CITIC Capital China Access Fund Limited, an investment fund managed by a subsidiary of CITIC Capital Holdings Limited. The Group will obtain sufficient funding to support its business expansion and also strengthen its shareholder base in the future.
Mr. Chim Wai Kong, Chairman and Executive Director of COSTIN said, "The Group will continue to expand its production capacity with new production facilities to strengthen its competitiveness and leadership in the industry. The Group's new production line with an annual production capacity of 18,000,000 square meters of high-thermal resistance filtration materials is expected to commence operation in September 2011. Moreover, the Company expects to commence production of composite materials in the third-quarter of 2012, with a targeted annual production capacity of 22,500,000 square meters. In addition, the Group will establish new production facilities for recycled chemical fibres to boost annual production capacity from the current 42,000 tons annually to approximately 162,000 tons annually in 2014. COSTIN is striving to become a leading enterprise in the non-woven materials and recycled chemical fibres markets in the PRC."
Mr. Eric Yip
SOURCE COSTIN New Materials Group Limited