re: Ann: Forecast Profit 2011 At Chinese Subs... Almost half a...

re: Ann: Forecast Profit 2011 At Chinese Subs... Almost half a million AUD profit forecast.

Thia is very good. I think definitely a buy, although they will need investment dollars to expand production.

AML Forecasts Maiden Profit of RMB3m for Year Ended 30 June 2011 at Chinese Subsidiary
Profit Expectations to 30 June 2011
On the 8 April AML announced that it?s 53% owned magnesium alloy production subsidiary (Henan
Keweier Alloy Materials Co. Ltd - HNKWE) had secured contracts to supply 8,400 tonnes of
magnesium alloys in the period to end September 2011. This development enables AML to predict with
some confidence likely short-term profit outcomes for HNKWE to 30 June 2011.
Since December 2010, management accounts show that HNKWE has been trading profitably with
continued steady improvement in monthly profit results. Net profit after tax for the four months ended 31
March 2011 aggregated RMB3,525,136 as follows.
Month NPBT Tax Expense NPAT
December 2010 RMB32,271 RMB0 RMB32,271
January 2011 RMB335,495 RMB0 RMB335,495
February 2011 RMB1,138,842 RMB0 RMB1,138,842
March 2011 RMB2,596,583 RMB(578,056) RMB2,018,527
Total RMB4,103,192 RMB(578,056) RMB3,525,136
These figures are unaudited and do not allow for any possible revaluations of finished goods and raw
materials on hand. They may also vary because of later adjustment to accrual estimates. The numbers
are subject to change as a result of later audit review.
For the period 1 July 2010 to 31 December 2010 the Segment Information table on page 17 of AML?s
half yearly report showed the HNKWE net loss after tax as AUD262,571. This was equivalent to
RMB1,758,696.
A minimum of RMB1,000,000 before tax profit is expected in each of the remaining months to 30 June
2011. For the 12 months to 30 June 2011 management is confident that HNKWE will report a net profit
after tax greater than RMB3,000,000 which, at an exchange rate of 6.8719 on 15 April 2011, is
equivalent to AUD436,000.
This is expected to leave the consolidat