The total turnover for the Group decreased as compared to 2005 largely due to a decrease in the sales of hardware equipment during 2006. However, overall gross profit margin improved from 7% to 22% because of an increase in the turnover contributions from maintenance services and the property agency businesses. The Group reported a gain of HK$9,290,000 from partial disposal of interest in ChinaCast Communications Holdings Ltd.
Mr Tse Michael Nam, Chairman of the Group said: "2006 saw the continuous evolution of the Group into a diversified investment holding company and there will be more exciting developments that will hold great growth potential for us in the months to come."
While the legacy business of providing automatic teller machines ("ATMs") maintenance service through TopAsia Computer Limited and its subsidiaries ("TopAsia Group") remains the core business stream, the Group now holds investments in Acacia Asia Partners Limited ("Acacia"), a provider of computer technology services primarily to the real estate agency businesses in Shanghai, and Grand Panorama Limited ("Grand Panorama"), a real estate consulting agency in Shanghai.
As a newly transformed investment holding company, the Group continued to look for opportunities to diversify its interests into areas with high commercial viability. Subsequently, after the close of the 2006 financial year, the Group entered into a Sale and Purchase Agreement to purchase the entire issued capital of an investment holding company that holds a contract to provide management and consultancy services for the cultivation of licorice roots in Inner Mongolia, the main growing centre of licorice roots in China.
Mr Tse continued: "We believe that there are huge market potentials for the licorice root business. Licorice root is an important Chinese medicine and a sought-after health product ingredient worldwide. The supply and quality of licorice roots from China have been decreasing in the recent years as a result of lack of management of the land in which licorice grows. The demand is however on the increase. This gap in demand and supply will gradually lead to an increase in the price for licorice."
The Group expects to commence the operation of its new agricultural project in April. The proper cultivation of licorice roots will ensure that the supply and quality of licorice roots will increase in future, and most importantly, lead to land preservation and anti-desertification through control of soil erosion and movement. As this is in line with the Government's national policy and interest, the Group has their full backing and support. The Group believes that through these efforts, it will gain access to further land management contracts and other lucrative business opportunities.
In the IT arena, TopAsia Group reported a 20% increase in its turnover in ATM after-sales services. During the year, TopAsia Group won the bid for the provision of after-sales repair and maintenance service for all of Bank of China's Yunnan branch ATMs. It has also become one of the leading ATM services providers to the Bank of Communications in 2006, expanding its servicing scope from 12 after-sale services contracts in 2005 to the current 29, which represented almost one-third of the bank's total branches of approximately 80.
In Zhejiang, the number of ATMs under its service more than doubled from less than 200 a year ago to over 400. In addition, the company tapped into a new market in the northwestern Gansu Province with more than 100 ATMs now under its service. Initial inroads were also made in the Qinghai Province.
New contracts for ATM maintenance services were clinched with Zhejiang Postal Bureau, Bank of Shanghai, China Merchants Bank, Bank of Commerce and Huishang Bank, etc. As for its storage facilities business, the division received new orders from the Industrial Bank's head office and Shanghai Securities Central Clearing and Registration Corporation.
Going forward, TopAsia Group's goal is to achieve a 5% year-on-year increase in the volume of its repair and maintenance services. In respect of marketing and sale of self-service facilities, TopAsia Group aims to achieve a year-on-year growth of 20%.
During the year, the Group's real-estate related operations, through Acacia and Grand Panorama, were adversely affected by the Chinese Government's policy changes and the imposition of austerity measures. To cope with the unfavorable market environment, Acacia downsized its staff strength and curbed its capital investment to minimize operational cost in the interim. However, the Group remains confident of the long term potential of China's real estate market, in particular the office sector in Shanghai and Beijing in which Grand Panorama specializes. This area of the real estate business is less speculative and more stable.
The Group's new identity as a diversified investment holding company continued to take shape in 2006, following the completion of various asset restructuring exercises. The Group will continue to embrace changes and relish new challenges and to turn them into opportunities for further growth.
Financial Highlights| Year ended December 31, | ||
| 2006 | 2005 | |
| HK$ '000 | HK$ '000 | |
| Turnover | 58,740 | 225,108 |
 Continuing operations |
58,740 | 128,884 |
| Discontinued operation |
- | 96,224 |
| Gross Profit | 12,671 | 17,119 |
| Continuing operations |
12,671 | 8,894 |
| Discontinued operation |
- | 8,225 |
| Net (loss) attributable to shareholders | (9,991) | (35,672) |
| Basic (loss) per Share (HK cents) | (2) | (7) |
About Venture International Investment Holdings Limited Issued by : Through :
Venture International Investment Holdings Limited (HKEx: 61) is an integrated investment company with a diversified portfolio of investments and operations in the IT, real estate and agricultural arenas. The Group's aim has always been to create more value for its shareholders and investors. Moving forward, it aims to be the best in the field of converting natural resources to commercial resources and to be part of world efforts in the conservation of environment for the greater good of mankind.
Venture International Investment Holdings Limited
t6.communications limited
Jenny Lee or Angus Ho
email: enquiry@t6pr.com
URL : http://www.t6pr.com