Last checked at 22 Jun 2010 07:00
China Shoto plc
("China Shoto" or "the Company")
AGM Statement & Trading Update
China Shoto plc, a leading Chinese battery producer and the largest supplier of back-up battery to China's telecommunication operators, will hold the Company's Annual General Meeting at 10.00 am today.
Yang Shanji, Executive Chairman, will make the following statement at the meeting:
Current Trading
In the Preliminary results for the period ended 31 December 2009 announced on 28 April 2010, the Company stated that they expected that China's major telecoms operators would shift their investment priorities from infrastructure construction to product marketing and development.
The Chinese government has increased greater control over low carbon, energy reduction and environmental protection. Accordingly, China's major telecom operators have reduced investment in infrastructure projects. Lower levels of investment have reduced domestic demand for back up battery products.
The Board had hoped that a recovery of global markets and the development of overseas, export opportunities would mitigate the fall in domestic demand. The Company remains committed to developing international sales, and it has achieved higher sales of certain product lines in difficult conditions. Nevertheless, the Company has experienced significant competition in overseas markets and global markets remain fragile. Further, exports and margins have become less competitive as the Renminbihas strengthened.
As a result of these factors, during the first five months of the 2010 financial year, revenue and profitability has fallen by approximately 15 per cent. when compared against the same period in the previous financial year.
Outlook
The Board is confident of remaining the largest back up battery manufacturer in China. It is well placed with its large R&D facilities providing improved products. The Company continues to expand its environmental activities and is progressing with its major lead recycling programme which will position the Company favourably. The Board remains committed to developing its strategy of developing international sales. A further update on trading, will be provided as appropriate.
-Ends-
| For further information: |
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| China Shoto plc Yang Shanji, Executive Chairman | Tel: +44 (0) 20 7242 2666 / +86 159 6108 0515 www.chinashoto.com
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| Seymour Pierce Limited Stewart Dickson
| Tel: +44 (0) 20 7107 8000 www.seymourpierce.com
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| Media enquiries: Allan Piper/ Jiang Lei lei@firstcitypr.com |
Tel: +44 (0) 20 7242 2666 / +852 2854 2666 www.firstcitypr.cn |
Forward looking statements
This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, the terms "believes", "estimates", "anticipates", "expects", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include matters that are not historical facts.
By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. The Company's actual results of operations, financial condition and liquidity may differ materially from the impression created by the forward looking statements contained in this announcement. In addition, even if the results of operations, financial condition, and liquidity are consistent with the forward looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: changes in the competitive framework in which the Company operates and its ability to retain market share; the Company's ability to generate growth or profitable growth; the Company's ability to generate sufficient cash to service its debt; the Company's ability to control its capital expenditure and other costs; significant changes in exchange rates, interest rates and tax rates; significant technological and market changes; future business combinations or dispositions; and general local and global economic, political, business, and market conditions. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur.
Other than in accordance with their legal or regulatory obligations, the Company does not undertake any obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise.