29th Nov 2007 07:00
China Shoto plc29 November 2007 Press Release 29 November 2007 China Shoto plc ('China Shoto' or 'the Company') Trading Update China Shoto (AIM:CHNS), a leading Chinese producer of industrial batteries andpower supply systems, is pleased to announce that the strong progress reportedfor the six months ended 30 June 2007 has continued into the second half of thefinancial year. Revenues in the back-up battery business have continued to grow in excess of 50%compared to the prior year. China Shoto is particularly pleased to have won asignificant order for the Indian market, as previously announced. Demand in thedomestic telecoms sector remains a key driver of the business. China Shoto is amarket leader in this sector. Revenues in the power type battery business are benefiting from the increase incapacity reported at the interim stage, with daily production capacityincreasing from 18,000 units to 24,000 units. The primary market for thesebatteries is the domestic electric bicycle market. Revenues in this businessare growing in excess of 40% compared to the prior year. As stated in the interim results and in accordance with the Company's dividendpolicy, the Directors will be recommending a final dividend of 4.5 pence pershare in cash for the year ending 31 December 2007. The Company also announces that it has entered into an agreement to dispose ofits 51 per cent interest in the turbine business ("FTD"). The transfer price ofthis disposal is RMB 8.0 million yuan and the dividend from this investment overthe holding period was around RMB 3.9 million yuan (the total amount paid inacquiring the interest was RMB 10.08 million yuan). The Directors believe that,while FTD is a solid business, management time and resources are more profitablyutilised in further expanding the rapidly growing core business. The Directors of China Shoto are confident that the outturn for the current yearwill be in line with market expectations. Furthermore, they believe that theCompany is well positioned to continue its good growth during 2008 and beyond. - Ends - For further information:China Shoto plcCao Guifa, Executive Chairman Tel: +44 (0) 20 7398 7700 www.chinashoto.com Seymour Pierce LimitedStuart Lane / John Depasquale Tel: +44 (0) 20 7107 [email protected] www.seymourpierce.com Media enquiries:AbchurchHenry Harrison-Topham / Ariane Comstive Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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