SHOUGANG CENTURY HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
SHOUGANG CONCORD CENTURY HOLDINGS LIMITED首 長 寶 佳 集 團 有 限 公 司
(Incorporated in Hong Kong with limited liability)
(Stock Code: 103)
PROFIT WARNING FOR THE YEAR ENDING 31 DECEMBER 2014
This announcement is made by the Board pursuant to Rule 13.09(2) of the Listing Rules and the
Inside Information Provisions.
Based on the currently available information which includes, but without limitation to, the unaudited management accounts of the Group for the eleven months ended 30 November 2014, it is expected that the Group will record a consolidated loss in the range of HK$105,000,000 to HK$115,000,000 for the year ending 31 December 2014 as compared to a consolidated loss of HK$16,590,000 for the year ended 31 December 2013, representing an increase of 533% to 593%. The expected discernible loss was mainly due to the significant decline in the selling price of steel cords especially during the second half year, which was attributable to the further slowdown in economic growth and business activities in the PRC during the said period that intensified market competition in the steel cord industry. Such significant decline in selling price of steel cords has severe negative impact to the gross profit margin of the Group. The expected discernible loss has not included any other potential provisions which have to be made subject to the review of the Board and audit committee of the Company together with the discussion with the auditors of the Company.
The Directors expect that the announcement of the audited consolidated results of the Group for the year ending 31 December 2014 will be published in March 2015 in compliance with the requirements under the Listing Rules.
This announcement is made by the board (the ''Board'') of directors (the ''Directors'') of Shougang Concord Century Holdings Limited (the ''Company'' which together with its subsidiaries, the "Group'') pursuant to Rule 13.09(2) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the inside information provisions (the
''Inside Information Provisions'') under Part XIVA of the Securities and Futures Ordinance (Chapter
571 of the laws of Hong Kong).
Based on the preliminary review of the currently available information which includes, but without limitation to, the unaudited management accounts of the Group for the eleven months ended 30
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November 2014, it is expected that the Group will record a consolidated loss in the range of HK$105,000,000 to HK$115,000,000 for the year ending 31 December 2014 as compared to a consolidated loss of HK$16,590,000 for the year ended 31 December 2013, representing an increase of 533% to 593%. The expected discernible loss was mainly due to the significant decline in the selling price of steel cords especially during the second half year, which was attributable to the further slowdown in economic growth and business activities in the PRC during the said period that intensified market competition in the steel cord industry. Such significant decline in selling price of steel cords has severe negative impact to the gross profit margin of the Group. The expected discernible loss has not included any other potential provisions which have to be made subject to the review of the Board and audit committee of the Company together with the discussion with the auditors of the Company.
Despite the above discernible loss, there has been no material impact on the operations of the Group. We are also of the view that the overall operation and financial position of the Group remain stable.
The Company will finalise the consolidated final results of the Group for the year ending 31
December 2014. Hence, the information disclosed in this announcement only represents a preliminary assessment by the Board and the management of the Group based on the information currently available to them. The audited consolidated final results of the Group may be subject to adjustments following further review by the Board, discussions with the auditors of the Company and completion of the required auditing procedures. The information in this announcement has not been reviewed by the auditors of the Company or the audit committee of the Company.
The Directors expect that the announcement of the audited consolidated results of the Group for the year ending 31 December 2014 will be published in March 2015 in compliance with the requirements under the Listing Rules.
By order of the Board
Shougang Concord Century Holdings Limited Li ShaofengChairman
Hong Kong, 18 December 2014
As at the date of this announcement, the Board comprises the following directors:
Mr. Li Shaofeng (Chairman), Mr. Yang Kaiyu (Managing Director), Mr. Leung Shun Sang, Tony (Non-executive Director), Mr. Zhang Wenhui (Non-executive Director), Mr. Tang Cornor Kwok Kau (Deputy Managing Director), Mr. Zhang Zhong (Executive Director), Mr. Yip Kin Man, Raymond (Independent Non-executive Director), Mr. Law, Yui Lun (Independent Non-executive Director) and Mr. Chan Chung Chun (Independent Non-executive Director).
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