China Metal Recycling profit up 148.5% to HK$1bn

Credit tightening in China provided a favorable business environment to the company as weaker rivals faces financing difficulties.

China Metal Recycling (Holdings) Limited (“CMR”), China’s largest scrap metal recycling company according to the China Association of Metal Scrap Utilisation, today announced its interim results for the six months ended 30 June 2011.

The Group achieved another record interim result during the period under review following the outstanding growth momentum in the past few years. This was attributable to the significant increase in sales of both ferrous and non-ferrous metals, as well as the Group’s business from new regions, namely Eastern China and Northern China, which have contributed substantially to the growth. The Group’s sales volume of ferrous metals and non ferrous during the period were 1.1 million tons and 310,000 tons respectively, representing an increase of 69.7% and 129.5% compared to the same period in 2010, as mentioned in a China Metal Recycling report.

Mr. Jacky Chun, Chairman and CEO of CMR, said, “Thanks to our increased market share, the continued strong market demand for recycled metals, and expansion of our regional coverage, we are glad to once again deliver record-high results during the period under review. Credit tightening in China has also provided a favorable business environment to us as weaker players have been facing difficulties of obtaining necessary financings. Leveraging our scale, financing capabilities and other competitive advantages, CMR has been able to continue expanding market share, further strengthening its market leader position in the industry.”

Looking ahead, CMR will roll out strategies to leverage its competitive advantages to:

1. Continue to strengthen its strategic national network and product categories in order to establish an integrated metal recycling system that combines the recycling and dismantling of scrap metals, electrical appliances, motor vehicles and vessels, so as to fully support the State government’s target of establishing a comprehensive recycling system under the 12th Five-Year Plan;

2. Develop a diversified sales and procurement network to enlarge its market share;

3. Continue to invest in advanced machineries and environmental protection facilities to ensure operational efficiency and economies of scale; and

4. Increase investment in the Group’s staff to enhance management quality and strengthen its overall operational and business integration capability.

Mr. Chun concluded, “With the contributions from our multiple regional operations, we are confident to maintain the volume growth momentum through to the second half of 2011. Our strategy of combining both organic and inorganic approaches of corporate development to maintain our first-mover advantage will be continued, reinforcing our leadership position in the industry as well as bringing more than spectacular returns to our shareholders.”