Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
XINGYE COPPER
HKEx Stock Code : 00505 
 
Corporate Profile
Engaged in manufacturing and sales of high precision copper plates and strips, trading of raw materials, provision of processing services and the management of a portfolio of investment.

Business Review - For the year ended December 31, 2012

2012 was a difficult year for the copper plates and strips sector in China. Even though downstream sectors such as power cable, transportation, real estate and electronics sustained growth in demand, downturn of the global economy and lower processing service fees for copper products attributed to over-capacity in the industry have caused enterprises to face hardship, with many small and medium sized enterprises enduring tremendous operating pressure due to shrinking financing options. On the other hand, enterprises have been modifying their product mix in view of shortage of high precision copper plates and strips in China, which will also intensify competition in the high precision copper market, and a new round of industrial restructuring is in the pipeline. The Company has adopted the following strategies to cope with challenges posed by the operating environment and industry competition, and strived to become a world class copper processing enterprise.

Business Outlook - For the year ended December 31, 2012

In 2013, the global economy surviving the crisis is still undergoing a period of correction. Nevertheless, as the major economies implemented qualitative easing and, specifically, there have been signs of market recovery driven by the US qualitative easing and the fading of the European debt crisis, which induced growing confidence, forecasts for 2013 economy are largely positive. In China, the real estate market is still under government regulation and control but the market has shown some signs of recovery. The 12th Five-Year Plan that focuses on promoting the construction of urbanized infrastructure, while the supply of high precision copper plates and strips falls short of supply in China, will definitely encourage a steady growth in demand for copper. As we entered the third year of the 12th Five-Year Plan, the Group will adhere to its core strategies ¡§to reinforce industry, to expand trading, to secure investments and to advance research and development¡¨ by (1) further implementing its RMB600 million investment project for introducing a world class production line and improving technology advancement; (2) active exploration of upstream resources, finding and investing in quality copper mines with an aim to extend the Group's industry chain; (3) increasing investment in research and development to accelerate the launching of new products; (4) optimizing trade structure and strengthening trading system; and (5) providing intensive training to base-level management and enhancing quality of the team to achieve growth across the Group, thus to consolidate the Group's leading position among its domestic and international counterparts.

Looking ahead, the Group will, in a cautious manner, adhere to upgrade its product quality, strictly monitor its production flow, broaden its international and domestic markets, open up further development opportunities and promote new production line projects with great effort, thus to add value to the Company and generate attractive returns for the shareholders.

Source: Xingye Copper (00505) Annual Results Announcement
Chairman HU Changyuan Issued Capital (shares) 700M
Par Value HKD 0.1 Market Capitalisation (HKD) 574M
 
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