Monday, January 25, 2021
 
Columnist
Martin Hennecke
 
ZHONGDA INT'L
HKEx Stock Code : 00909 
 
Corporate Profile
The principal activities are the development, manufacture and sales of automobile equipment and buses and trading of automobile spare parts.

Business Review - For the year ended December 31, 2010

Automobile Repair and Maintenance Equipment

During the year, export sales of the Group comprising mainly automobile spray booths and car lifters were approximately RMB24.1 million, representing an increase of 15.7% when compared with previous year. However, domestic sales recorded a record high growth of approximately 44.5% as compared to last year. While it is expected that the global economy would still be volatile and export sales would not be recovered in the short period of time, we would continue to developing new products to retain our competitiveness.

Trading of Automobile Spare Parts

Yancheng Zhongda Automobiles Equipment Co. Ltd. is the procurement center for both the Group and the Zhongda Industrial Group Corporation. The turnover of this segment was approximately RMB196.6 million which increased by 52.1% when compared with last year. It was mainly due to an increase in domestic sales of Bus Rapid System (¡§BRT¡¨) by Zhongwei Bus. Moving forward, we are still planning to upgrade this platform to serve our affiliate companies and joint ventures. In the long run, we would expand and open this platform to serve outside customers.

Automobile (Double-Decker) Manufacturing

During the year, Nanjing Zhongda Jinling Double-Decker Bus Manufacture Co. Ltd. (¡§Zhongda Jinling') has contributed revenue of approximately RMB64.1 million, accounting for approximately 13.9% of the Group's total revenue. While we continue to develop and explore the market for double-decker, we have invited new investors and strategic partners to participate the venture and our interest has been diluted accordingly. Zhongda Jinling would be an associated company of the Group afterwards.

Zhongwei Bus

Zhongwei Bus is our associated company which is specialized in manufacturing long-haul coaches. Its products have been sold to over 40 countries around the world. During the year, export sales was still weak but the company has successfully launched a Bus Rapid System (¡§BRT¡¨) system in Yancheng City of Jiangsu Province. As a result, it contributed a profit of approximately RMB1.0 million to the Group.

Overseas Project

During the year, we have successfully established a joint venture in South Africa with South Africa National Taxi Council (¡§SANTACO¡¨). We would be bulk selling tailor-made minibus and coaches to the country. At the same time, we were forming another joint venture with SANTACO to build and operate the first nationwide electronic fare management system in the country as well. These two projects are expected to provide the Group with a new source of income.

New Energy Project

We are acquiring Nanjing Zhongda Qingshan Electric Vehicle Company Limited (¡§Zhongda Qingshan¡¨). The company is specialized in producing power battery, motor and control system of electric vehicle. The acquisition conforms to the comprehensive implementation of new energy automobile industry in the PRC. We believe the company would have considerable growth potential.

Business Outlook - For the year ended December 31, 2010

Looking forward, with the start of the ¡§Twelfth Five-Year Plan¡¨, we expect the PRC would further consolidate and boost its recovery from the global economic crisis. We will continue to strengthen our core business segments that increase its future earnings. On the other hand, we will continue to seek potential investment opportunities that could create high value for our shareholders and enhance the return of their investments.

Source: Zhongda Int'l (00909) Annual Results Announcement
Chairman N/A Issued Capital (shares) 1,087M
Par Value HKD 0.1 Market Capitalisation (HKD) 462M
 
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