Shenzhen SEG Samsung: net profit up on government subsidy

Shenzhen SEG Samsung Glass Co Ltd said its 2006 audited net profit was up 15.81% year-on-year at CNY 46.85 million despite rising production costs and strong market competition, thanks mainly to a gov…

Shenzhen SEG Samsung Glass Co Ltd said its 2006 audited net profit was up 15.81% year-on-year at CNY 46.85 million despite rising production costs and strong market competition, thanks mainly to a government subsidy. Samsung Corning Investment Co Ltd and Samsung Corning Co Ltd, two units of South Korea“s Samsung Corning Co Ltd, hold stakes of 21.37 % and 14.09% respectively in Shenzhen SEG Samsung. In its 2006 financial statement filed to the Shenzhen Stock Exchange, the company said it received CNY 94.35 million in government subsidy in 2006, up sharply from the previous year“s CNY 19.11 million. Earnings per share stood at CNY 0.06 in 2006 against CNY 0.05 a year earlier. The company said high energy and raw material prices increased production costs for its core products which include cathode-ray tubes, flat panel displays and glass bulbs for kinescopes. In addition, it said falling demand and oversupply of CRTs as consumers switch to flat panel displays also contributed to lower revenue. It said core revenue was CNY 2.01 billion, down 2.56% from CNY 2.07 billion in 2005, while core business cost rose 1.85% to CNY 1.65 billion . Operating and financial expenses rose 13.54 % and 4% respectively to CNY 267.76 million and CNY 102.39 million. The company has set a production target of 19.5 million displays and 15.47 million CRTs in 2007. No revenue or profit targets were given. Total assets stood at CNY 3.65 billion at the end of 2006, down 14.51 % from CNY 4.27 billion at end-2005.