Zhuhai Zhongfu Announces 2010 Interim Results

Product diversification to achieve growth in packaging, sales and production volume for non-carbonated drinks

Aug 23, 2010, 18:55 ET from Zhuhai Zhongfu Enterprise Holdings Limited

    ZHUHAI, China, Aug. 23 /PRNewswire-Asia/ --

    Performance Highlights

                                  Six months ended   Six months ended   Change
    (RMB)                              30 Jun 2010        30 Jun 2009       (%)

    Total Operating Income        1,601,868,596.16   1,477,864,030.28   +8.39%

    Operating Profit                146,319,993.82     166,887,638.15  -12.32%
    Gross Profit                    148,186,003.51     172,034,019.70  -13.86%
    Net Profit                      111,415,389.87     137,699,308.59  -19.09%
    Net Profit
     Attributable to
     Shareholders                    78,822,988.57      96,870,688.04  -18.63%
    Earnings Per Share                        0.11             0.14    -21.43%

China's leading beverage packaging and PET bottling company, Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu" or the "Company"; stock code: SZ000659), today announced its interim results for the period ended 30 June 2010.

During the period, Zhuhai Zhongfu reported stable sales and production volume. As of 30 June 2010, the Company's total operating income increased by 8.39% to RMB 1.6 billion. Operating profit decreased by 12.32% to RMB 146 million. Net profit dropped 19.09% compared with the same period last year, to approximately RMB 111 million. Net profit attributable to shareholders dropped 18.63% compared with the same period last year, to approximately RMB 78.82 million.

Mr. Gary Guernier, Chairman of Zhuhai Zhongfu, said, "China's beverage industry continued to grow in the first half of 2010. However, the current year's widespread and severe cold weather significantly affected beverage consumption. Additionally, we have not yet entered the peak season for beverage. These factors resulted in our slower profit growth, with the effect in carbonated beverages being most apparent. However, we have seen higher growth in bottled water, tea, fruit juice and other non-carbonated products, underpinning the long-term business prospects for the Company."

Zhuhai Zhongfu is regarded as the leader in China's beverage and non-beverage packaging industry, providing safe and environmentally friendly beverage and non-beverage products. Its product quality, R&D, cost control, customer service and employee training have also been well received in the industry. Coca-Cola, Pepsi and Uni-President are its major customers.

Mr. Guernier concluded, "The Company will take proactive measures to combat the negative impact due to bad weather in the first half of the year. In particular, we will vigorously diversify our services and products, most notably expanding our packaging, sales and production volume for bottled water, tea and fruit juice. We will also increase our marketing efforts for non-carbonated beverages. And we will continue to build further on our core strengths, which include continual efforts to cement our established partnership with customers, actively upgrading our service quality, expanding our production capacity, improving our products design, fully utilizing our production facilities, and persistence in stringent cost control. We are confident about delivering stable, solid business growth."

About Zhuhai Zhongfu Enterprise Holdings Limited

Zhuhai Zhongfu Enterprise Holdings Limited ("Zhuhai Zhongfu"; stock code: SZ000659) was established in 1982. It is primarily engaged in the production and marketing of PET bottling, PVC and OPP labeling, and it is also engaged in drink refilling. Zhuhai Zhongfu is one of the largest PET bottle manufacturers in China, and the first company supplying PET bottles to Coca Cola in China. The Company has over 80 production facilities and an annual production capacity of over 5.5 billion. Its products include PET bottles for carbonated soft drinks, drinking water and beer. It has received various honors and awards at the national and provincial level. The Company was listed on the Shenzhen Stock Exchange (Main Board) in 1996, the first entity in China's beverage packaging industry to be listed. For more details, please visit the Company's website at http://www.zhongfu.com.cn .

    For inquiries, please contact:

     Gloria Chiu
     Tel:   +852-2501-7970
     Email: gloria.chiu@golinharris.com

     Madison Wai
     Tel:   +852-2501-7903 / +852-9306-1632
     Email: madison.wai@golinharris.com

SOURCE Zhuhai Zhongfu Enterprise Holdings Limited