| Full-year Financial Statement for the year ended 31 March 2002 |
| |
Latest yr
(HK$'000) |
Previous yr
(HK$'000) |
% change |
| Turnover |
|
|
|
| Other income including interest income |
|
|
83.5 |
| Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items |
35,832 |
|
|
| Interest on borrowings |
|
|
|
| Depreciation and amortisation |
|
|
11.9 |
| Foreign exchange gain/(loss) |
|
2,544 |
|
| Exceptional items |
0 |
0 |
0 |
| Operating profit before income tax and extraordinary items |
27,040 |
63,811 |
|
| Income derived from associated companies |
0 |
0 |
0 |
| Less income tax |
(5,792) |
|
|
| Less minority interests |
0 |
0 |
0 |
| Operating profit after income tax attributable to shareholders |
|
|
|
| |
Latest year |
Previous year |
| Earnings per share (after tax and extraordinary items) |
|
24.79 HK cents |
| Net tangible asset backing per ordinary share |
82.26 HK cents |
69.36 HK cents |
| Review of Performance |
 For the year ended 31st March, 2002, the Group had achieved a turnover of HK$957 million, a decline of about 20.5% as compared to fiscal year 2001. The decrease in turnover was mainly attributable to a general slow down of the economy, in particular the electronics industry. The 11th September, 2001 incident further dampened the already depressed global demand for electronics equipment, and in turn, the demand for electronics components. As a result, there was an erosion of the margin. As such operating profit after tax has shown a larger decline to HK$21.2 million, a decrease of 59.7% as compared to fiscal year 2001.
Other income increased due to an increase in commission income received from one of our major principals. It represents mainly incentive rebate for achieving certain sales target.
Interest on borrowing showed a substantial decrease due to decrease in interest rate for the year and less usage of trade facilities as well as due to decrease in inventory level. |
| Commentary On Current Year Prospects |
With China's entry into the World Trade Organisation, increased expansion and penetration into this market has become the Group's key strategic thrust for growth. As part of our plan to fortify our presence in China, the company has established a logistic centre in Waigaoqiao in the Free Trade Zone in Shanghai that will provide warehousing and logistic support in China. With the tremendous business potential in Suzhou/Shanghai area, this subsidiary is a tactical move as many of our principals as well as potential customers are situated around this region. Moreover as a logistics centre, the company will be able to trade more effectively and cut down its operational costs, which can translate into cost savings for our customers and ultimately generate greater demand for our components.
Besides establishing a subsidiary in China, South Korea has always been perceived to be the market with the greatest growth potential for electronics components. The company has formed a joint venture in South Korea in May 2002. The Korean partners have in-depth knowledge of electronics components market and extensive network of contacts in Korea. In additions, their engineering capabilities allow them to pro-actively undetake design and application for customers which will enable us to establish a strong market presence in South Korea.
The electronics components distribution industry, which has been plagued by pricing pressures in last year, is expected to continue to compete vigorously due to volatility in supply and demand of components. Notwithstanding that the path is still fraught with economic uncertainties and market volatility, we believe that with our strategic positioning of resources, the Group should be in a position to take advantage of a recovery. We are hopeful about the prospective growth in both China and other Asia Pacific region and we are stepping up efforts aggressively to achieve greater market share.In addition, we will continue to focus on ways to improve efficiencies, reduce costs, source for new business and cultivate stronger relationships with our customers and principals.
Since the start of this current year, we have seen orders picking up. If the growth momentum we have seen so far continues into the second half of the year, and barring any surprises, we expect to do better this year. |
|
31/03/2002
HK$'000 |
31/03/2001
HK$'000 |
| Current assets |
397,135 |
365,035 |
| Non-current assets |
|
|
| Property, plant and equipment |
36,049 |
37,418 |
| Other investments |
810 |
810 |
| Subsidiaries |
- |
- |
|
433,994 |
403,263 |
| |
|
|
|
| Current liabilities |
183,607 |
253,428 |
|
|
|
| Non-current liabilities |
31,576 |
2,436 |
|
|
|
| Shareholders' equity |
|
|
| Issued capital |
53,200 |
1,000 |
| Reserves |
165,611 |
146,399 |
|
433,994 |
403,263 |
|
