GRG Banking Reports Continuing Growth in 3Q Financial Results

Source: Securities Times, China


Guangzhou, China - the 3Q financial report of GRGBanking Equipment Ltd. (002152) for this year shows the continuous rapid growth both in revenue and net income. Operation income hits ¥784 million ($114.73 million), up 64.60% with net income reaching ¥204 million ($29.85 million), rising by 46.95% from the same period last year. Encouraged by the robust growth, it forecasts net income increase of 30% to 60% by the end of 2008.


The revenue structure of GRGBanking indicates ATM sales generate the majority of its revenue. The revenue overall is ¥748 million($109.46 million), up 65.68% from 2007, with¥133 million ($19.4 million) generated by ATM sales, up 60.99% compared with the same period of last year. Module outsourcing offsets the impact of appreciation of Chinese currency. The overall sales gross margin is 44.25%, down 1.44% year over year.


In the first nine months of 2008, the domestic market share of GRGBanking ATM and capability of taking big orders has been driven to increase steadily. Its products have been in almost all major banks of China. In September, it won an order of over ¥400 million ($ 58.85 million) from Agricultural bank of China, one of the largest banks in the country. GRGBanking is also shortlisted in purchasing tenders of Communication Bank of China, Construction Bank of China and Bank of China, gaining 17 banking customers in total. It also spreads to rural credit cooperative market successfully.