Jinshan Industries (00040.HK) announced that in the six months ended September 30, 2021, the turnover of continuing operations increased by 14.5 per cent to HK $3.584 billion. The profit from continuing business attributable to the owners of the company increased by 22.5% to HK $55.5 million.Earnings per share of continuing business was HK7.08 cents (2020 / 21: HK5.78 cents). Earnings per share, together with discontinued business, was HK5.15 cents (2020 / 21: HK6.29 cents). The Board does not recommend the payment of an interim dividend for the six months ended 30 September 2021 (2020 / 21: nil).

On August 31, 2021, GP Industrial Group completed the sale of its subsidiaries engaged in automobile distribution business. In accordance with the existing financial reporting standards, the operating results of the sold vehicle wiring business in the first half of this year and the comparative figures for the six months ended 30 September 2020 will be grouped under the discontinued business items.

The gross profit margin fell slightly to 26.1% from 26.8% in the same period last year, mainly due to the appreciation of the RMB and the substantial increase in the cost of various raw materials and components. Compared with the same period last year, the RMB appreciated by more than 7% against the US dollar in the first half of this year. Although the price increases of different types of materials and components vary, the costs of individual materials and components with high demand have increased by 15% to 25%.

However, customer price adjustments and improved KEF sales mix and increased sales of audio system products partially offset the negative impact of RMB appreciation and increased material costs on GP Industrial Group's gross profit margin.