World Precision Machinery reverses losses, reports earnings of RMB53.9 mil in 1Q update

Turnover was mainly derived from sales in Jiangsu, Zhejiang, Guangdong and Guangxi.

Gross profit spiked 164.1% y-o-y to RMB55.7 million on the back of higher gross profit margin (GPM), which increased 4.9 percentage points y-o-y to 19.2%.

The higher GPM was due to the increase in production of conventional stamping machines and high performance and high tonnage stamping machines.

Other income increased over 10 times to RMB46.4 million from RMB4.0 million mainly due to a disposal of subsidiary, which netted the group RMB42.3 million, as well as an increase in government grants during the quarter.

Earnings per share (EPS) stood at RMB0.13 on a fully diluted basis, from loss per share of RMB0.01 the year before.

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As at March 31, cash and cash equivalents stood at RMB328.4 million.

Shares in World Precision Machinery closed 0.5 cent lower or 1.3% down at 38 cents on April 30.