* Extracted from Annual Report 2016
On behalf of the Board of Midas Holdings Limited, I am delighted to present to you our Annual Report for FY2016.
FY2016 was a milestone year for Midas as the Group completed the acquisition of Huicheng Capital and its subsidiary which formed our new “Aluminium Alloy Stretched Plates Division” on 27 July 2016. With the expansion of the Group's product offerings to include aluminium alloy stretched plates coupled with strengthening contributions from our associated company, NPRT, the Group delivered a 76.3% increase in profit after tax to RMB100.8 million during the year under review.
We are heartened to have delivered improved profitability during the year, supported by the consolidated contributions from our new business segment. This bodes well for our diversification strategy as we seek to leverage synergies across the aluminium products value chain and cross sell our products and services to customers across industries.
For FY2016, we recorded total revenue of RMB1,485.7 million. Revenue from the Group's Aluminium Alloy Stretched Plates Division for the period from 27 July 2016 to 31 December 2016 amounted to RMB182.0 million, contributing to 12.2% of total revenue for the year. Meanwhile, the Group's core Aluminium Alloy Extruded Products Division registered revenue of RMB1,293.3 million, accounting for 87.1% of total revenue in FY2016 compared to about 99.2% for the financial year ended 31 December 2015 (“FY2015”).
During the year, our Aluminium Alloy Extruded Products Division and our associate, NPRT, also enjoyed a good stream of contract wins totaling approximately RMB533.6 million and RMB7,170 million respectively.
Jilin Midas continued to benefit from the positive sentiment in the PRC railway industry. Besides a series of four metro train car body components supply contracts, Jilin Midas also garnered contracts totaling RMB251.9 million for the supply of aluminium alloy extrusion profiles and certain fabricated parts for the manufacture of high speed trains.
The Group also actively sought international business opportunities, with three contract wins from the Middle East and Europe amounting to RMB152.3 million during the review year. The increased demand for our aluminium alloy extrusion products is representative of the confidence our repeat customers have in us as well as our leadership position in the highspeed train and metro train segments.
Besides capitalising on opportunities in the railway industry, Midas is on track with the implementation of our diversification and capacity expansion strategy, which contributes to the Group's growing income streams and enhances our competitiveness.
Going into 2017, Midas is expected to remain a beneficiary of the PRC's railway expansion plans, as the government continues to invest in the expansion of the country's railway network. Together with its “One Belt One Road” initiative, this represents significant infrastructure and construction opportunities in the PRC and overseas markets for businesses.
As a leading player in the PRC railway industry, Midas is poised to capitalise on opportunities arising from positive industry developments. We will continue to actively identify and harness opportunities in both the PRC and international railway sectors, backed by our reputation for quality and reliability. Coupled with our enhanced operational capabilities, the Group will continue to harness synergistic benefits from an expanded product range across our value chain, which will align with the Group's plans for capacity expansion and diversification growth across new industries and sectors.
On behalf of the Board and Management, we would like to thank our shareholders, customers, suppliers and business partners for your support. To our management and staff, I must thank you for the hard work and commitment.
Your confidence in Midas provides us with the strength to push on with our strategy – which we aim to translate into greater shareholder value and sustainable growth of the Group in the years ahead.
CHEW HWA KWANG, PATRICK
Chief Executive Officer