China Specialty Glass Looks Back on Successful Financial Year 2012 with High Growth

China Specialty Glass AG ("CSG"), holding company of one of the largest producers of security glass in China, looks back on another successful financial year 2012 with high growth in revenues and earnings.     

-Revenue growth by 47.9 per cent to 113.7 million Euros

-Gross profit increased by 47.7 per cent to 51.9 million Euros

-EBIT increased by 9.2 per cent to 26.7 million Euros

-Negative one-off effect of 12.5 million Euros impacted earnings

-Further strong growth expected

Revenues of CSG increased significantly by 47.9 per cent from 76.9 to 113.7 million Euros. Higher revenues in all three segments contributed to this increase. With 46.7 million Euros, the largest segment of CSG sales was in bank security glass.// Gross profit augmented by 47.7 per cent from 35.1 to 51.9 million Euros. With a gross profit margin of 45.6 per cent (2011: 45.7 per cent) CSG continued to be highly profitable in the financial year 2012.

Due to a negative one-off effect of 12.5 million Euros resulting from a convertible loan, earnings before interest and taxes (EBIT), earnings before taxes (EBT) as well as net profit were impaired. Despite this effect, EBIT increased by 9.2 per cent to EUR 26.7 million, representing an EBIT margin of 23.5 per cent (2011: 31.8 per cent). EBT decreased by 3.7 per cent to 23.4 million Euros (2011: 24.3 million Euros) while net profit went down by 21.6 per cent to 16.3 million Euros (2011: 20.8 million Euros). Excluding this negative one-off effect, EBIT amounted to 39.1 million Euros and EBT to 35.8 million Euros. The one-off effect resulted from losses arising from the initial recognition of a convertible loan as well as the convertible components due to the fact that the interest rate of the loan is higher than the current market rate. CSG has reflected this valuation difference in their financial statements according to IFRS.

Solid financial base

Cash flow from operations increased by 48.6 per cent to 29.2 million Euros, up from 19.7 million Euros in the previous year. With a cash position of 84.4 million Euros (2011: 56.6 million Euros), a total equity of 114.8 million Euros (2011: 99.0 million Euros) and an equity ratio of 68.4 per cent CSG disposes of a very sound financial base for further investments.

The initial recognition of the convertible loan and the convertible components did not have a negative impact on the group’s cash position within the financial year 2012.

Promising outlook for 2013

Corresponding to its growth strategy CSG intends to further increase its product sales by the expansion of its sales network in China and abroad. The required enhanced production capacity will be achieved through the new laminated and thermal pre-stressed glass production line in Sichuan Province, which will be fully put into operation in 2013 and also by the expansion of the existing production plant in Guangzhou.

Given the growth opportunities for CSG group and its market leading position in China, the company expects to increase its revenues by around 40 per cent in 2013. Net profit is expected to grow at the same pace.

About CSG

China Specialty Glass AG is the German holding company of the China Specialty Glass Group. The Group develops, produces and sells specialty glass. The company's main products, which are all sold under the brand name “Hing Wah”, are, on the one hand, for safety glasses such as bullet-proof, bomb-proof and burglar-resistant glasses and, on the other hand, for constructional glasses including laminated, tempered and fire-resistant glasses, hollow glass blocks and electrically-controlled colour-changing glass. The group is one of the leading companies in China in the fields of safety glass for banks and the automobile industry, both in terms of production output and market share.

The shares of China Specialty Glass AG are listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN DE000A1EL8Y8 / SIN A1EL8Y / Ticker 8GS).