Zhejiang Glass Company, Limited (a joint stock limited company incorporated in the People's Republic of China) (Stock Code: 739) Announcement in relation to Estimated Increase in Unaudited Consolidated Net Profit The board of directors ("Board") of Zhejiang Glass Company, Limited ("Company") would announce that the unaudited consolidated net profit of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2004 ("Relevant Period") is expected to increase by 80% to 100%, as compared with the corresponding period in 2003. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
This announcement is made pursuant to the disclosure obligation under Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Board would announce that according to the management accounts of the Group for the Relevant Period, the unaudited consolidated net profit of the Group for the Relevant Period (which are subject to finalisation and further review) is expected to increase by approximately 80% to 100%, as compared with the corresponding period in 2003 (the unaudited consolidated net profit of the Group for the six months ended 30 June 2003 amounted to approximately RMB56 million). During the Relevant Period, the Group experienced an increase by more than 30% in both the production volume and the average selling price of the Group's flat glass as compared with the corresponding period in 2003.
The Board would also point out that the operating results of the Group for the Relevant Period were not materially affected by the austerity measures implemented by the government of the People's Republic of China ("PRC"). The prices of heavy oil and soda ash, being major fuel and raw materials for the manufacturing of the Group's flat glass, remained high during the Relevant Period and led to an increase in the unit cost of sale of the Group by approximately 15% as compared with the corresponding period in 2003. However, the increase in the production volume and the average selling price of the Group's flat glass exceeds the increase in the unit cost of sale of the Group, thus resulting in the improvement of the Group's profitability. The interim results of the Group for the Relevant Period are expected to be released on or around 25 August 2004. Such interim results are subject to finalisation and to the review by the Company's audit committee. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
Press Release from Zhejiang Glass
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