HONG KONG — China Leon Inspection Holding Limited (the “China Leon” or the “Company”, Stock Code: 1586.HK) is pleased to announce its unaudited interim results for the 6 months ended 30, June 2017 (the “Review Period”).
During the Review Period, China Leon operated well in the year and recorded a stable and sound growth in its performance. In the first half of 2017, both the trade volume and price of coal rose, driving the Company’s steep revenue growth. During the Period, The Company’s revenue increased by 30.6% from approximately RMB81.1 million for the six months ended 30 June 2016 to approximately RMB105.9 million for the Period. The Company’s gross profit increased by 37.8% from approximately RMB41.5 million for the six months ended 30 June 2016 to approximately RMB57.1 million for the Period. The gross profit margin increased from 51.2% for the six months ended 30 June 2016 to 54.0% for the Period. The Company’s net profit increased by 130.3% from approximately RMB10.1 million for the six months ended 30 June 2016 to approximately RMB23.2 million in the Period.
During the Period, the Company stepped up efforts in market development as per the established corporate strategy, upgrading the nine service centers in Mainland China on an ongoing basis while setting up four new service centres abroad, thereby further completing service network. Currently, the overseas service centres are under construction. Meanwhile, the Company increased investment in R&D and made steady progress. The Company’s strategic planning will reinforce market leading position and help to cope with challenges both at home and abroad.
To improve service capabilities and to accommodate increased business volume, the Company intend to upgrade some of laboratorial facilities at existing service centers located in the North. Expansion plans will further strengthen Company’s market shares locally by allowing the Company to better market service capabilities through site tours and provide improved customer experience. The Company’s current service centers cover primarily major seaports for coal trade in China. As the operation continues to grow, the Company also plans to expand service network to other regions that are strategically important to China’s seaborne coal trade, including certain key seaports located in Shandong province (north) and Fujian province (south). As the Company further penetrate the coal testing and inspection market for coal transported via rail or truck, the Company expect to set up new service centers at strategically-located rail interchanges that are critical for inland coal trade.
So far, the Company has established Overseas Service Centres in Singapore, Indonesia, Malaysia, and India (all four overseas service centres are under construction) through new construction as well as acquisition. The establishment of overseas service centres will raise brand recognition internationally, increase overseas revenue, and setf off on march to the international market.
In addition, the Company is dedicated to deploying adequate resources to advance research and development efforts. The Company plans to strengthen internal research as well as collaboration with third-party institutions to develop automated service process, which will allow the Company to significantly reduce labor costs, minimize human error and improve efficiency for services. China Leon also plans to develop and upgrade in-house technology infrastructure to support new business offerings, including comprehensive quality control services. Combined with customers’ systems of the Company, the upgraded technology infrastructure will capture and compile the test results from complete service sessions, and enable the Company to manage holistically the coal quality over a stipulated period of time.
Looking forward to the future, the management of China Leon stated: “The Company will continue to upgrade and expand its service center network, actively develop the imported and exported coal testing services, improve its research and development and technical strength, and further solidify our leading position in the coal testing and inspection industry. Meanwhile, the Company will integrate the market of China’s coal testing and inspection through the selection of acquisitions.”