GP Batteries International Limited

19 December 2000, Singapore - Mainboard-listed GP Batteries International Limited ("GP Batteries"), is pleased to announce today its unaudited results for the six months ended 30 September 2000.

Review of Results

The Group's turnover for the six months ended 30 September 2000 rose by 11.8% to S$286.5 million and the consolidated net profit after taxation and minority interests increased by 63.5% to S$14.3 million when compared to the previous corresponding period. Earnings per share for the period based on the weighted average of 103,461,168 (1999: 103,461,168) shares in issue amounted to 13.80 Singapore cents, compared with 8.44 Singapore cents for the previous corresponding period.

Business Review

The business environment continued to improve from the previous year. Market conditions for rechargeable batteries have improved as consolidation takes place. The Group achieved another record sales for the period through internal growth. Shipments to our major overseas markets reached new highs. Sales in Asia remained strong as we gained market share from weaker competitors. The weak Euro has handicapped our sales efforts in Europe, but we have managed to achieve our budgeted growth. The continuous efforts of the Group to reduce costs and improve efficiency resulted in the long awaited improvement.

The Group has started to market its own Lithium Ion battery and the product has been well received by portable computer manufacturers. Mass production of these batteries is expected to commence in next fiscal year. In November, the Group's Lithium Ion battery plant in Taiwan, Gold Peak Industries (Taiwan) Limited ("GPIT"), entered into an agreement with Taisec Securities Inc. ("Taisec") whereby Taisec will provide advisory and listing application services to GPIT for listing on the Taiwan Stock Exchange. GPIT is expected to be able to list in Taiwan in 2002.

The Group has increased the production capacity of our alkaline 9-Volt battery factory in Malaysia as well as several of our rechargeable battery factories in China to meet increased demand.

In September 2000, the Group entered into a subscription agreement with a syndicate of banks and financial institutions for the issue of US$60,000,000 Floating Rate Notes due September 2003. The proceeds from the issue of the Floating Rate Notes will be used to refinance its existing US$35,000,000 Unsecured Bonds due November 2000 and its short-term bank borrowings.

In the opinion of the Directors, no items, transaction or event of a material and unusual nature has arisen between the date up to which this report refers and the date on which this report is issued which would substantially affect the results of the Company or of the Group.

Prospects

The outlook for the second half year remains optimistic. Market prices for batteries have generally stabilized and raw material prices have not risen even as world oil prices remained high. Our position in advanced rechargeable batteries - Lithium Ion and Nickel Metal Hydride - will continue to enable us to participate in the development of the rapidly growing communications industry. Lithium Ion batteries will become an important element of the Group's business in the next financial year.

The Group has set up a separate business unit to commercialize our efforts in large Prismatic Nickel Metal Hydride Batteries. Small-scale production will commence early 2001. The Group is pursuing various business opportunities in electric transportation.

Barring unforeseen circumstances, the Directors expect the Group to achieve satisfactory results in the second half of the current financial year.

© Copyright 1996-2019 irasia.com Ltd. All rights reserved.

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website. TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website.