Global Lock Safety – Final results

Global Lock Safety – Final results

Global Lock, the provider of security solutions to retailers and other organisations in China, announces its final results for the year ended 31 December 2010.
 
Highlights:

Revenue for the year RMB 21.65m (an increase of 152% over 2009's RMB 8.6m)

Global Lock, the provider of security solutions to retailers and other organisations in China, announces its final results for the year ended 31 December 2010.
 
Highlights:

  • Revenue for the year RMB 21.65m (an increase of 152% over 2009's RMB 8.6m)
  • Loss for year RMB 3.29 m (2009: loss of RMB 0.59m)
  • Net assets (including minority interests) of RMB 59.00m (2009: RMB 51.8m)
  • Cash and cash equivalents RMB 7.95m (2009: RMB 1.92m)
  • Loss per share RMB 0.01 (2009: RMB 0.00)

 
Chairman's Statement
2010 was a significant year for Global Lock Safety (International) Group Co., Ltd ("Global Lock" or "the Company"); the Company listed on London's AIM Market on 21 October at an initial market capitalisation of GBP 41.25 million and by the year-end the Company and its subsidiaries (together "the Group") had expanded its operational network to a total of 56 branches in 11 provinces across the People's Republic of China ("the PRC" or "China") serving more than 11,000 retail store customers (compared with 38 branches and 5,100 retail store customers as at 31 December 2009). This represented a significant increase on the 6,000 customers signed up at the time of the Company's admission.
 
The Group's total revenues for the year amounted to RMB 21.65 million (approximately GBP 2.0 million), an increase of 152% over the revenues of RMB 8.6m achieved in the previous financial year, with an after-tax loss of RMB 3.29 million (approximately GBP 315,000) (2009: loss of RMB 0.59m). This loss is accounted for by the substantial investment necessary for the rapid expansion of the Group's branch network and the funding of those new branches in the early high-growth stage before they acquire sufficient customers to attain profitability.
 
The Board's strategy remains firmly focused on the rapid expansion of its branch network and accelerating its customer acquisition within China. Key to this process has been facilitating and cementing good relationships with provincial and local government bodies and local police forces. The board believe that services offered by Global Lock help free up valuable police resources by largely eliminating false alarms as well as contributing to safer neighbourhoods.
 
The Company hosted two conferences at the People's Conference Hall in Beijing, the first being a press conference on 20 November 2010 which was arranged to publicise Global Lock's strategic partnership with China Legal Daily. A second National Conference was also held towards the end of November which was aimed at nationwide and regional politicians, as well as legal & public security officials and police departments and the Directors believe this to be a crucial step in the on-going development and expansion of the Company. The purpose of the conference was to facilitate co-operation between the Company and the governmental and regional police departments with a view to them supporting and promoting the Company's security solution around China. At the conference, the Company promoted its unique security solution and its potential for assisting governmental and regional police departments in the performance of their duties. The Directors estimate that approximately two hundred delegates attended these conferences.
 
Following the success of the Beijing conferences, Global Lock has placed greater emphasis on its marketing at conferences, in collaboration with city level government, in order to accelerate customer acquisitions. This initiative has already met considerable success, with trials in Jingzhouin Hubei Province and Yuxiin Yunnan Province. At the Jingzhou conference, held on 23 December 2010, 28 new customers were signed up and at the Yuxi conference, held on 30 December 2010, 46 new customers were acquired. In addition, the Company is working closely with the local government in Yuxi who are trialling an integrated security solution in two residential areas using Global Lock as the security provider.
 
As part of the Board's efforts to heighten the national profile of Global Lock, the Company has forged an alliance with China Legal Daily, China's leading legal newspaper of record, published under the auspices of the Ministry of Justice with a circulation of approximately 30 million readers. The Board believe that this is the first time in China Legal Daily's history that it has entered into such an alliance with any private company. The Company's profile was further heightened when it secured the services of footballing legend Diego Maradona as a Company spokesman. Mr Maradona is a folk hero in China with superstar status.
 
The Company is also considering expansion beyond the retail sector into neighbourhood security and this is firmly in line with our desire to become China's leading provider of security solutions.

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