China Leon released its performance report for the first half of 2017
2017.08.31
China
Leon's overall corporate operating conditions were good in the first half of
this year. In addition to increase in both the quantity of inspected coal and
the price, the income in its main business increased. The Company's income in
its main business increased from RMB 81.1 million in the first half of last
year to RMB 105.9 million this year, with an increase of 30.6%. The gross
margin increased from RMB 41.5 million in the first half of last year to RMB
57.1 million this year, with an increase of 37.8%. The gross profit rate
increased from 51.2% in the first half of last year to 54.0% this year. The net
profit increased from RMB 10.1 million in the first half of last year to RMB
23.2 million this year, with an increase of 130.3%.
In
accordance with established strategic principles, China Leon constantly
increases the development of domestic and foreign markets in a wider range and
continuously improves the service quality of nine domestic service agencies.
With the establishment of four overseas service agencies, its service network
and coverage have been more sophisticated. Besides, the Company further
strengthens the high-tech research and development work, which is progressing
smoothly. We believe that the Company's future strategic planning will help
maintain its current leading market position and better respond to the various
challenges brought about by domestic and
international market changes.
In
order to enhance the service capacity of nine domestic service agencies and
cope with the ever-increasing amount of business, the Company decides to
upgrade the laboratories and other office facilities of the four service
agencies in the north. The Company's future development plan is to create a
better customer experience and provide better services for new and existing
customers through the overall upgrade of the existing facilities in the service
agencies, thereby to further enhance the Company's share of each market.
Currently, the Company's service agencies across the country have basically covered
China's major domestic coal trading ports. With the continuous growth of
business volume, the Company plans to expand the service network to other areas
strategically significant to China's waterway coal trading market, including
the many important ports in Shandong and Fujian. To date, the Company has set
up four overseas service agencies in Southeast Asian and South Asian countries,
i.e. Singapore, Malaysia, Indonesia and India, through investment in
establishment, acquisition and M&A. The establishment and operation of
overseas service agencies will certainly greatly enhance the Company's
international reputation and increase its income in overseas business, and then
blow the horn for China Leon's entry into the international market.
The
Company will continue to provide various supporting resources for the purposes
of promoting the work regarding scientific research, innovation and development
and enhancing its internal research and development capabilities. Besides, it
will further strengthen the cooperation with scientific research institutions
to jointly develop an automated service program. If the program can be
successfully put into use, the Company's cost of labor will be significantly
reduced, and minimum human errors and maximum service efficiency will be
achieved. The Company also plans to develop and upgrade its internal technology
infrastructure to support integrated quality control services and other new
business. Moreover, the customer system has achieved interoperability so that
customers can obtain complete and accurate test results through the most
convenient way in the shortest possible time.
Looking
ahead, China Leon's management said that, in addition to continuous upgrade and
expansion of the service center network, China Leon will improve its research
and development capabilities to enhance the detection program and experimental
capacity, actively make arrangements for the business regarding testing of
imported and exported coal, and enhance scientific research ability and technical
level. Besides, the Company will further consolidate its leadership in the coal
testing and inspection industry, and integrate China's coal testing and
inspection market through selection and acquisition.
