News: Gongyou Machines Ltd.

DGAP-News: Gongyou Machines Ltd.


Final Results

Gongyou Machines Ltd.: Profit of more than RMB 13 million in a difficult economic environmentCorporate News transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Gongyou Machines Ltd. achieved a still respectable performance in the
financial year 2008, in spite of an increasingly difficult economic
environment.

Our Sales Turnover decreased by 11% to RMB 179.6 million, mainly due to
falling demand in the domestic markets in China. Our main client base is
Chinese furniture manufacturers. Many of them have slowed down their own
expansion, because furniture exports to the USA decrease.

Machine exports to our main overseas markets, like Russia, Latin America
and ASEAN, are still rising. The demand, especially for our recently
developed range of high-end machines, remains healthy.

Our Gross Profit fell by 33% to RMB 34.6 million. In addition to the
falling sales, spiraling costs for our main raw materials, steel and
copper, have affected our margin. Also, labor costs were growing faster
than in previous years. However, recent trends indicate some improvement
regarding metal prices.

Selling, distribution and administration costs rose in total by about 20%,
in line with increased costs for salaries and services in China.

The Net Profit fell by 61.6% to RMB 13.3 million.

Earnings per share reach 14.2 Eurocents.

Our balance sheet continues to be strong. Shareholders equity increased by
9% to RMB 157.5 million.

We are free of bank liabilities, and our current assets exceed
substantially our current liabilities.

Our book value reaches EUR 1,68 per share.

Contact:
Julian Sandt, Director
sandt@orchidcapital.net
(c)DGAP 08.10.2008
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