Sound Global Achieved Growth of 38% in Profit with its Robust and Comprehensive Platform

Wednesday, 20 August 2014, 18:40 HKT/SGT

HONG KONG, Aug 20, 2014 - (ACN Newswire) - Sound Global Ltd. ("Sound Global", or the "Company"; Hong Kong Stock Code: 967) is pleased to announce its unaudited consolidated results of the Company and its subsidiaries for the six months ended 30 June 2014 ("the Period").

The Company's revenue of the Period increased by approximately RMB 160.1million or 10.9% from approximately RMB 1,474.6million for the six months ended 30 June 2013 ("the same period of last year") to approximately RMB 1,634.7million. The increase was attributed mainly to: (1) increased contribution from the Operation and Maintenance ("O&M") segment of approximately RMB56.4 million as certain Build, Operate and Transfer ("BOT") projects started operations; and (2) increased contribution from the turnkey Engineering, Procurement and Construction ("EPC") services of approximately RMB134.2 million as the Company continues to be awarded and fulfilling its EPC projects in China.

Gross profit of the Period increased by approximately RMB56.3 million or 12.7% from approximately RMB444.2 million for the same period of last year to approximately RMB500.5 million. The gross profit margin increased by approximately 0.5% from approximately 30.1% to approximately 30.6%. Profit attributable to owners of the Company of the period increased by approximately RMB66.2 million or 38.2% from approximately RMB173.4 million for the same period of last year to approximately RMB239.6 million. As at 30 June 2014, the Company's cash position remained strong and stood at approximately RMB3,753.3 million.

Mr. Wen Yibo, Chairman of Sound Global expressed, "We have achieved great performance for the first half of year, which will definitely help the Company stay on track to meet our target of this year. The Company will continue efforts to achieve a further business growth in the second half of 2014. We have achieved a balanced growth in various business segments. The EPC segment has maintained its leading advantage and a rapid growth has been achieved in O&M segment. Meanwhile, we have seen fast development in M&A projects and great breakthrough in extension of operation tenure in third party O&M projects. In rural and township projects, the leading position and business presence penetration across the country has been reinforced. Sound global has possessed full value chain advantage and innovation in area of business and technology, which will drive its stable and fast business growth and further improve the profitability."

Mr. Wen has also emphasized the company's position in the industry, "Sound Global has been a leading industry player and striving to build itself into a comprehensive platform company. It will continue to lead the industry development and provide lucrative returns to its investors. We look forward to continuous support on the Company for its further development in the future."

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 researched and developed 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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