SEYI (Shieh Yih Machinery) Announces Second Quarter Results and Outlines Capital Raising Activities

USA - English

• USA - English

TAIPEI, Taiwan, Sept. 2 /PRNewswire-Asia/ -- On Tuesday, August 31, 2010, SEYI (SHIEH YIH MACHINERY) (4533 TT), one of the world's leading producers of mechanical presses, released its audited financial results for the Six Months Ended June 30, 2010 and announced plans for the issuance of 20,000,000 new shares of common stock in September.

SEYI posted strong financial results for the Second Quarter of 2010. Net Operating Revenue of TWD 951,968,000 (US $29,767,604) represented a 96% increase over Net Operating Revenue in the same period last year. With significantly higher sales levels and improved operating efficiencies, the Company's Gross Margin expanded to 24.9% in the most recent quarter. As a result, profitability improved dramatically and SEYI reported Consolidated Net Income of TWD 59,697,000 (US $1,866,704) versus a Consolidated Net Loss of TWD 68,724,000 (US $2,148,968) for the Second Quarter in 2009. Second Quarter Earnings Per Share was TWD 0.49.

For the first six months of 2010, SEYI reported Net Operating Revenue of TWD 1,492,177,000 (US $46,659,694), an 86% increase over Net Operating Revenue of TWD 800,961,000 (US $25,045,685) during the same period in 2009. Consolidated Net Income of TWD 47,880,000 (US $1,497,186) compared favorably with a Consolidated Net Loss of TWD 101,010,000 (US $3,158,537) in 2009. Earnings Per Share for the first six months of 2010 was TWD 0.39.

Both SEYI's Taiwan and China operations have experienced dramatic sales increases in 2010. Sales from SEYI's Taiwan facility accounted for 57% of total sales during the period, registering a 56% increase over 2009. Sales from SEYI's China plant, located in Kunshan, Jiangsu Province, accounted for the remaining 43% of sales and more than doubled from the level achieved in the prior year.

In commenting on SEYI's first half results, Ms. Claire Kuo, Chairman and Chief Executive Officer said, "Sales from China have been strong all year, and this trend certainly continued into the Second Quarter. I am particularly pleased, however, by the strong showing of our Taiwan operation during the Second Quarter, as well as our Company's return to profitability for both the Second Quarter and the First Six Months of the year. Sales and profitability trends continue to be strong at both facilities in July and August, Ms. Kuo added.

SEYI also announced that on July 22, the Company received approval from the Securities and Futures Bureau to issue 20 million new shares of the Company's common stock. The price for the new shares, which will be offered to existing shareholders, has been set at TWD 11.30 (US $0.35).

The proceeds from the offering, which are expected to total approximately TWD 226 million (US $7.1 million), will be used to strengthen the Company's balance sheet. "In addition to the actions we have taken to improve sales and earnings over the past year," Ms. Kuo said, "we are also taking strong measures to improve SEYI's capital structure. Combined with the offering of 20 million new shares which the Company completed in 2009, the capital raised in this offering will greatly enhance the Company's financial flexibility. Now that the Company's ongoing operations are on a sound footing, we are exploring various strategic alternatives to expand the Company's business, and a strong financial position will enable us to take advantage of these opportunities as they arise."

SEYI expects the offering of its common stock to be completed by September 10.

About SEYI

Founded in 1962, SEYI has established a position of global leadership in the press building industry over the past 48 years. SEYI manufactures mechanical presses, ranging in size from 25 to 2400 tons, at facilities located in Taiwan and the People's Republic of China. At its original location in Taoyuan, Taiwan, SEYI operates a 12,500 square meter facility, and in 2003 the Company began production in China at an 11,000 square meter facility located in Kunshan, Jiangsu Province. Combined production capacity at the Taoyuan and Kunshan plants approaches 4,000 presses annually. Construction of a second 11,000 square meter facility in Kunshan was completed in 2009 and will begin production in 2010. The new facility in Kunshan will manufacture up to 300 presses annually, ranging in size from 300 to 4,000 tons. SEYI products have been sold to customers in over 40 countries around the world, and the Company is the dominant foreign supplier to China, India, South East Asia and the Americas in terms of volume. SEYI is the recipient of numerous quality awards from around the world.

The Company completed an initial public offering of its common stock in 2002 and is traded on the Taiwanese OTC (4533 TT) market.

    For further information contact:

     Fathi El-Farghali
     Director of Business Development
     203 Lemon Creek Dr. Unit A
     Walnut, California 91789 USA
     (O):   +1-909-839-1151 x207
     (M):   +1-626-675-9591
     Email: [email protected]
     Web:   http://www.seyi.com

     Kenneth Wei
     Spokesman
     446, Nan Shang Road,
     Kueisan, Taoyuan, Taiwan
     (O):   +886-3-352-5466
     Email: [email protected]
     Web:   http://www.seyi.com.tw

    Note: TWD 31.98 to USD1.0

SOURCE SEYI (SHIEH YIH MACHINERY)