Sound Global Announces FY2013 Annual Results; Solid Revenue Growth of 18%, EBITDA Surged 25% YOY

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Tuesday, 25 March 2014, 19:55 HKT/SGT

HONG KONG, Mar 25, 2014 - (ACN Newswire) - Sound Global Ltd. ("Sound Global", or the "Company"; Stock Code: 00967.HK) is pleased to announce its audited consolidated results of the Company and its subsidiaries for the year ended 31 December 2013 ("FY2013").

HIGHLIGHTS
-- Revenue for 2013 totaled approximately RMB 3,140million, an increase of 18.4% compared to the year before (2012: approximately RMB 2,652million)
-- Gross profit for 2013 rose by 19.7% to approximately RMB 958million (2012: approximately RMB 800million)
-- EBITDA was approximately RMB 868million, up for 25% (2012: approximately RMB 693million)
-- EBIT was approximately RMB 851million, up for 26% (2012: approximately RMB677million)
-- Basic earnings per share reached approximately RMB 32.82cents in 2013

The Company's revenue increased by approximately RMB487.2million or 18.4% from approximately RMB 2,652.3million in 2012 to approximately RMB 3,139.5million in 2013. Gross profit increased by RMB157.8 million or 19.7% from approximately RMB800.4million in 2012 to approximately RMB 958.2million in 2013. The increase in 2013 was due to the higher revenue and the stable gross profit margin throughout the financial year. On a year-to-year basis, the gross profit margin remained relatively stable at around 30%. Profit attributable to owners of the Company remained relatively consistent at approximately RMB 427.5million in 2012 and approximately RMB 423.3million in 2013.

Turnkey revenue
Turnkey revenue increased by approximately RMB436.9million or 17.9% from approximately RMB 2,446.0million in 2012 to RMB 2,882.9million in 2013 as the Company expands its operations. Profit contribution from turnkey projects and services increased by approximately RMB84.9million or 14.0% from approximately RMB 607.9million in 2012 to approximately RMB 692.8million in 2013. The Company continues to be awarded and is fulfilling its Engineering, Procurement and Construction ("EPC") projects in PRC.

Revenue from equipment fabrication segment
External revenue from equipment fabrication segment decreased by approximately RMB48.2million or 43.0% from approximately RMB 112.0million in 2012 to RMB63.8million in 2013. Profit contribution from equipment fabrication segment increased by 30.7% from approximately RMB 7.5million in 2012 to approximately RMB 9.8million in 2013.

Revenue from operations and maintenance segment
Revenue from operations and maintenance segment increased by approximately RMB98.5 million or 104.5% from approximately RMB 94.3million in 2012 to approximately RMB 192.8million in 2013. Profit contribution from operations and maintenance segment increased by approximately RMB84.1million or 250.3% from approximately RMB 33.6million in 2012 to approximately RMB 117.7million in 2013. Revenue and profit increased as additional ten Build, Operate and Transfer ("BOT") projects and six Operation and Maintenance ("O&M") projects started operations in 2013.

Mr. Wen Yibo, Chairman of the Company remarked, "In 2013, the celebration of Sound Group's 20th anniversary provides an opportunity for the management not only to review Sound Global's remarkable achievements in the past, but also to appreciate the great talent and dedication of our employees, and to express our sincere gratitude to our business partners, customers and shareholders globally for their support and trust in Sound Global continuously. Sound Global has laid a strong foundation over the past few years with our integrated competitive advantages in technology know-how, management expertise and complete supply chain. Sound Global has never slow down its pace in seeking new developments in water treatment and environmental protection sectors in municipal, rural and industrial domestic markets , as well as globally.

Looking forward, the Company will further enhance its EPC order book and equipment sales. Moreover, supported by our strong cash flow, the Company is well positioned to capture any suitable BOT/TOT/PPP and O&M projects which produces high returns and foreseeable recurring revenues in a risk cautious manner. The sewage treatment projects in rural areas and industrial parks will become the spotlight for growth of the waste water treatment industry, after the development in large and middle-sized cities. Having the first mover advantage in these two areas, Sound Global will definitely move to the next phase with impressive growth fueled by our comprehensive advantages."

About Sound Global Ltd.
Sound Global is the leading one-stop integrated water and wastewater treatment solutions providers in the PRC. The Company offers services covering the full value chain of the water and wastewater treatment industry - from the design and construction of water and wastewater treatment facilities, to the operation and maintenance of water and wastewater treatment facilities and the manufacture of water and wastewater treatment equipment. With advantages in technology, capital, management and whole industry chain, Sound Global has earned a high reputation within the water industry for its excellence since its founding. The Company has very extensive business networks covering all major provinces in PRC. On top of coverage in domestic market, sound global has also penetrated into overseas market in 2009 and continued expanding its business presence internationally. Sound Global is the first Chinese water enterprise that successfully won the bid for the overseas water project.

The Company places significant emphasis on its in-house design capability and the innovative adaptation and application of technologies to offer customized, cost-effective and practical solutions for the diverse challenges presented by the treatment of municipal and industrial water and wastewater. With strong R&D and technical capacity, Sound Global could provide wastewater treatment solution for all major industries, particularly coking, metallurgy and petrochemical industries who demand highly sophisticated wastewater treatment technologies.

In 2011, Sound Global expanded into the markets of environmental management in China's suburban-rural areas. Sound Global engineered a new program -- the "Sound Global SMART(1) Solution for wastewater treatment in Small Townships". This program was implemented in 18 bundled wastewater treatment projects in Changsha County of Hunan Province. This integrated wastewater treatment programs, developed by Sound Global, established successful models for wastewater treatment in suburban-rural areas of China.

(1)Small & Skillful, Multiple & Modular, Active & Automatic, Rapid and Technologic

Topic: Press release summary Sectors: Daily Finance, Daily News
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