Overseas business is gradually picking up, and short-term investment leads to high profit growth:
After two consecutive years of declining profits, the company's full-year net profit rose sharply to $18.87 million in 2012 due to a $9m gain on short-term investments, a nearly tenfold increase from $1.74 million in the same period last year. During the period, although the company's US and Chinese markets continued to expand and bring new orders, due to the decline in sales of mid-end products in the UK market, revenue reached US $422.8 million, down 0.1% from the same period last year; gross profit was US $108.16 million, up 2.6% from the same period last year, and gross profit margin was 25%, a slight increase. The company's basic earnings per share were 0.62 cents, with an interim dividend of HK $0.04 per share and a final dividend of HK $0.08 per share. If you strip out the contribution of the company's other income and the impairment loss on investment, the company's full-year core profit increased by 30%, mainly due to the company's effective control of expenses.
The company invests mainly in short-term products, and its investment attitude is cautious:
The main reason for the sharp increase in the company's performance this year is the pull of investment income during the company period. At present, the company invests in short-term financial products, and the investment is very cautious, mainly because the company has a large part of cash on hand, so the company chooses short-term investment to increase cash income. As the company does not rule out a large number of capital requirements to achieve possible mergers and acquisitions in the future, the company will only choose some short-term products to ensure the liquidity of the company's funds.
The financial situation is good, and a number of measures will continue to improve gross profit margin in the future:
On December 31, 2012, the company's cash and cash equivalents increased to $99.5 million, the capital-to-debt ratio increased to 17.7% from 14.4% in 2011, and the company's current assets increased by 5.9% to $537.6 million from $508.9 million in 2011. while the company's current liabilities increased by 11.5% to $157.9 million from $141.6 million in 2011, the current ratio decreased to 3.4 times. In the future, the company will continue to improve gross profit margin by improving production efficiency and continuously introducing new products. In 2012, the capacity utilization rate was 60%, 75%, and in 2013, it is estimated that it will achieve 70%, 80%. The company does not rule out mergers and acquisitions in the future and will choose companies that enhance its advantages to invest.
Outlook for the future:
The overall competition in the furniture industry is very fierce, and some competitors in the industry have price reduction behavior. The future development space of the company is to constantly seize the market share of competitors. At present, the company's market share is 1.3%, and the market at the bottom of the industry is very scattered, so the company has a lot of market space in the future. The company expects the Chinese market to maintain double-digit growth in the future, and the product structure is expected to continue to improve.