Saurer announces strong 2017 annual growth
- Excellent growth in revenue by 37% to CNY 8'713 million
- Strong earnings generation with profits before tax of CNY 996 million
- Outstanding performance in key markets China and Turkey with growth of 70%
- Successful listing in Q3 2017 on the Shanghai Stock Exchange
Mr. Clement Woon, Chief Executive Officer, says:
“2017 was a year of substantial growth for Saurer as the Group continued to benefit from strong demand for all textile solutions and components.
With growth in sales revenue by 37% to CNY 8'713 million, an excellent earnings generation with profits before tax of CNY 996 million and a profit margin of 11.4%, Saurer has successfully strengthened its position as the globally leading integrated textile equipment supplier, offering a suite of solutions from bale to yarn.
The strong performance is a result of the disciplined execution of our strategic priorities and our successful listing at the Shanghai Stock Exchange in Q3 2017, which enabled both our newly created segments – Saurer Spinning Solutions and Saurer Technologies – to contribute to last year’s profitable and high quality growth.
In its rich 165-year history, time and again, Saurer has proven that it is able to drive innovation and perform very successfully in changing market conditions. By taking advantage of favourable economic circumstances and our outstanding businesses capabilities, the Saurer Group has been able to post the best results of the last five years. We were particularly successful in China and Turkey, with growth rates of 70% in both countries. In addition, within three years, Uzbekistan has become the fourth-largest market for Saurer, posting over CNY 500 million in sales.
2017 was a year of profound change for the company, and we have made remarkable progress in further aligning our business to the needs of our customers, advancing technologically and developing our management. Backed by our industry-leading global sales and after-sales service system, we will continue to leverage the advantage of operating in some of the most dynamic and attractive markets in the world. As a listed subsidiary of the Jinsheng Group, Saurer is in a very favourable position to profit from unprecedented economic opportunities across these markets, including in China with its vision of the textile industry as well as the ‘One Belt, One Road’, ‘Industry 4.0’ and ‘Made in China’ initiatives.
As we continue to execute on our strategic priorities and build on our competitive advantage, I am confident that our teams have the determination and passion to deliver continuous growth and stable margins throughout the cycle and create even greater long-term value for investors and society.”
The full annual financial statement in Chinese is published on Saurer’s website and the Shanghai Stock Exchange. An English version will be available in mid-May.
Revenue by segment
Saurer has organised its operating units according to its strategic goals. The Saurer Spinning Solutions and Saurer Technologies business segments both aim to better serve customers’ needs, to enhance operational efficiency and to integrate and anticipate technological innovations. Saurer Spinning Solutions provides customers with services along the entire bale-to-yarn production process. Saurer Technologies concentrates on ennobling solutions, on line monitoring and sensor technology, as well as components contributing to various stages within the textile manufacturing process.
Key financial data
The Group achieved a strong performance by focusing intensively on providing our customers with integrated, fit-for-purpose solutions that delivered added value at different stages of the textile manufacturing process, tight cost control and efficient internal processes.
Annual General Meeting (AGM)
The date for the Annual General Meeting of Saurer Intelligent Technology Co Ltd. will be published in due course. Shareholders individually or jointly holding more than 3% of shares may submit proposals regarding the agenda in writing ten (10) days prior to the date of the AGM to Saurer Intelligent Technology Co Ltd., Office of the Board of Directors, Floor 36, Tower B, THE PLACE, 100 Zunyi Road, Shanghai 200051, China.
Saurer’s Board of Directors is proposing a dividend for shareholders of CNY 0.1 per 10 shares for 2017 (before tax), the total payout ratio therefore amounting to 31%. Subject to approval at the Annual General Meeting, the payment date will be communicated after the AGM.