xinren aluminum holdings lt (XAH) Snapshot

Xinren Aluminium Holdings Limited announced unaudited group earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue was RMB 1,765,108,000 against RMB 1,440,762,000 a year ago. This increase in revenue was mainly attributable to the recognition of deferred revenue which had not been recognized as of December 31, 2012 as well as increase in trading sales of alumina. Loss before taxation was RMB 3,394,000 against RMB 2,565,000 a year ago. The slight increase in loss before taxation was primarily due to losses incurred in the smelting segment that suffered from lower average selling prices of aluminum products. However, this loss from the smelting segment was alleviated by the higher profit from the fabrication and trading segments, and contribution from the share of result in a jointly controlled entity. Loss attributable to owners of the parent was RMB 6,758,000 against RMB 10,108,000 a year ago. Net cash generated from operating activities was RMB 111,061,000 against net cash used in operating activities of RMB 75,403,000 a year ago. This was mainly attributable to the decrease in deferred expenses and amount due from a jointly controlled entity as well as the increase in trade and other payables. However, the overall increase was partially offset by the increase in prepayments, trade and other receivables and decrease in deferred revenue. Purchase of property, plant and equipment was RMB 1,571,000 against RMB 32,773,000 a year ago. Prepayment for purchase of property, plant and equipment was RMB 2,534,000 against RMB 88,797,000 a year ago. Payment of land use rights was RMB 4,120,000 against RMB 1,400,000 a year ago. Basic loss per share was 0.52 cents against profit per share of 0.92 cents a year ago.

XinRen Aluminum Holdings Limited provided group earnings guidance for the first quarter ended March 31, 2013. Based on the preliminary financial figures, the Group is expected to report a marginal after-tax loss for the first quarter of 2013 due to weaker selling prices of aluminum products in first quarter of 2013. This profit guidance is based on a preliminary review of the unaudited financial results of the Group. Further details of the Group's performance will be disclosed when it finalizes its unaudited financial results for first quarter of 2013.

XinRen Aluminum Holdings Limited filed its Annual on Apr 11, 2013 for the period ending Dec 31, 2012. In this report its auditor, Ernst & Young LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern.