Derivative Group (6893) develops and sells personal care products, health care products and household products through a number of its own brands, including Derivatives, American muscle Magazine and retail. In addition, it also sells and distributes products on the basis of family ownership.
With the popularity of e-commerce, JFG set up a joint venture company in April this year, which aims to promote the sale of e-commerce products in mainland and Hong Kong through cross-border online platforms, and plans to make use of different multimedia promotion channels, such as social media and mobile apps, to enhance brand awareness.
In the year to the end of March this year, market income rose 5.8% to 227 million yuan, profit increased 91% to 21.2 million yuan, and overall gross profit margin rose 3.7 percentage points to 60.8%. At the end of the period, the number of weekly deposit days increased from 63.1 to 66.6 days as of the end of March 2015, and the number of weekly shifts for trade receipts decreased from 45.7 days to 37.6 days, with an annual decrease of about 20 million yuan, with an annual reduction of 240 million yuan, and the assets ratio remained at zero.
With regard to the latest profit warning, it is estimated that the profit for the six months to the end of September this year will be reduced by about 8.5 million yuan, or by 60% in the same period in 2015, mainly due to the decline in the retail market in Hong Kong, which has reduced sales revenue by about 9%; the extra cost generated in the course of operating expenses and related administrative expenditure has increased by about 19%; and the unrealized foreign income of the people against the Hong Kong dollar is about 4.3 million Hong Kong dollars. However, comprehensive income increased 24 times year-on-year during the forecast period, mainly due to fair value gains of $304 million from available-for-sale investments. It is worth noting that the mid-term issue will be published this month.
On October 17, it fell to 1.90 yuan and rebounded, forming a rising trend. MACD held the bull gap, but yesterday, when it lost the 100-day line, STC%K continued to fall below the% D line. It is appropriate to lower the suction rate by 2.15 yuan, and the reverse resistance is 2.50 yuan, not falling below 2 yuan to hold.