Hongkong news (July 21, 2009) sales was a 30% contraction in Hongkong injection molding machine production business male group Co., said, although the financial market outlook remains uncertain, but there are signs that the company has got rid of the worst economic crisis period.

As one of the Chinese largest machine manufacturer, Zhenxiong group announced in July 14th its fiscal year ended March 31, 2009 sales fell 31% to HK $1 billion 600 million (about 1 billion 410 million yuan), profits plummeted about 70% to HK $85 million 700 thousand (about 75 million 600 thousand yuan).

Zhen Xiong said that the reason why sales had shrunk was that more than 10 thousand factories went bankrupt in Guangdong Province as the export center of Southern China, while Shanghai and other East China cities also had the same problem.

Zhenxiong expected, even in the most optimistic scenario, the global market to 2010 will usher in the recovery, but the company believes that by China government 4 trillion yuan ($590 billion) economic stimulus package, Chinese was probably the first country out of depression.

Zhen Xiong said, "as long as the Chinese government continues to implement the current loose monetary policy and provide support for all industries, it is believed that its demand for plastic injection machines will return to a more normal level. The year 2009 was one of the worst years in the company's 50 years of business. "

Zhen Xiong said that it had adopted the new marketing strategy, implemented a cost reduction plan and reduced the number of employees from 3700 to 2500, in order to make better use of future recovery opportunities. The company said these measures helped them improve their cash flow and increased their cash balance to HK $408 million (about 359 million 900 thousand yuan) in the second half of the fiscal year.

Zhen Xiong said they launched many new products on May 18th -22, 2009 China International Rubber and plastic Exhibition (Chinaplas), held in Guangzhou, including a large tonnage machine equipped with servo drive and energy saving of 70%. The company also showed a new all electric machine SM-50P. Once the recovery of the international market, the machine will become the flagship product of Xiong Xiong in these countries.