Techcomp's FY2011 Sales Up 21.3% to US$154.1m on Strong Chinese Demand for Analytical and Life Science Equipment

HONG KONG and SINGAPORE, March 1, 2012 /PRNewswire-Asia/ --

• Net profit before exceptional items up 13.8% to US$11.2m
• First and final dividend of 6.2 HK cent recommended
• Growing demand for Techcomp's products in China and other Asian emerging markets in FY2012

Techcomp (Holdings) Ltd ("Techcomp", or the "Group", HKSE stock code: 1298, SGX stock code: T43), one of China's leading manufacturers and distributors for analytical and life-science instruments, has released its financial results for the 12 months ended 31 December 2011 ("FY2011"). FY2011 sales were up a strong 21.3% year-on-year (yoy) to US$154.1 million mainly due to solid demand in China for its products in both the distribution and manufacturing businesses.

Due to one-off expenses associated with the Group's dual listing exercise carried out in FY2011 on the Stock Exchange of Hong Kong (SEHK), net profit attributable to shareholders declined by 20.0% yoy to US$8.4 million. Excluding the one-off expense of US$2.8 million in FY2011 and one-off gain of US$0.7 million on sale of a jointly controlled entity in FY2010, net profit would have been up 13.8% to US$11.2 million. To reward its shareholders, Techcomp's Board of Directors is pleased to propose a final dividend of 6.2 HK cent per share.

Gross profit increased 12.9% yoy to US$46.6 million in FY2011. Gross profit margin dipped from 32.5% in FY2010 to 30.3% in FY2011 mainly due to the appreciation of the Japanese Yen which a significant portion of the Group's purchases for the distribution business were denominated in.

About outlook and future plans, Richard Lo, President & CEO of Techcomp, said, "For FY2012, we will continue to focus on the China market where growth prospects are vast. China's spending on analytical instrument will increase by a compounded annual growth rate of 7.5% from US$2.8 billion in 2011 to US$3.5 billion in 2014, outpacing the global growth rate of 4.0% to US$43.9 billion (Note 1). The PRC government's investments in food safety, public healthcare, science and technology, tertiary education as well as continuous support for R&D spending will continue to drive strong demand for analytical and life science instrumentation.

"We will also focus on emerging markets in Asia like India and Indonesia, where we are well positioned to fulfil increasing demand for product services and support. As for our European market, we are quietly confident that the quality of our products and competitive pricing will create demand amongst increasingly price-conscious consumers.

"This has been an eventful year for Techcomp as we successfully completed a dual primary listing on the Main Board of the SEHK. I am confident that this will give us greater financial agility to seize future opportunities, such as acquisition and joint ventures, which may come our way."

Note:
1. Global Assessment Report 2010 (SDI Report), The Laboratory Life Science & Analytical Instrument Industry, 2010-2014

About Techcomp (Holdings) Limited

Backed by a strong research team, Techcomp (Holdings) Limited ("Techcomp") is China's leading manufacturer of highly advanced scientific instruments, with cutting edge technological patents in analytical instruments, life science equipment and laboratory instruments. The Techcomp brand of analytical instruments is used in laboratories for diverse industries, ranging from materials analysis and testing to pharmaceuticals, biotechnology, medicine, food and beverage, and to forensics. Techcomp has a strong R&D track record and is an original design and original equipment manufacturer for the world's leading brands of analytical instruments used in research and test applications. Techcomp's strong distribution network for a wide range of the world's leading brands of highly advanced analytical equipment is predominantly in China.

SOURCE Techcomp (Holdings) Limited