 |
 |
home > press releases > Kin Yat > 中文版 |
KIN YAT HOLDINGS LIMITED
Achieves record turnover of HK$921 million in year to March 2007
The core operations of toys, electrical appliances and motors contributed respectively 45%, 38% and 17% of turnover to the Group during the year.
Mr Vincent Fung Wah-cheong, Deputy Chairman, Kin Yat Holdings said: “While we relish and celebrate the success of our efforts, we must recognize that the tasks ahead to ensure sustainable growth are more strenuous and challenging. There are signs that the operating environment may get worse, amidst challenges of high material prices, increasing minimum wages in the Pearl River Delta region, a weakening US economy and strong competition. We must keep costs down through more efficient production processes, enhanced equipment and automation, and higher closer vertical integration.”
The commencement of Kin Yat’s third manufacturing base in Shaoguan since the last quarter of 2007 also provides timely relief when it comes to controlling production costs, expanding capacity and upgrading industrial capabilities to support future growth. In addition, the Group will continue to expand into new markets, for example, Mainland China which will enable it to enjoy further upside from the anticipated appreciation of the RMB. The shift to high value-adding products and a more diversified product portfolio is also an ongoing initiative for the Group.
The toys operation reported solid growth in segment turnover to HK$739,347,000, up 20% from last year. Market concerns over product quality have resulted in even more stringent requirements, leading to an industry consolidation which is driving out weaker players. The Group has maintained an excellent record in quality management, and it is poised to identify appropriate development opportunities as this consolidation process reshapes the market situation.
The toys segment is largely driven by the movie-and-entertainment industry. The Group has enjoyed strong toy products sales derived from certain blockbuster movies released in 2007. Such orders have exceeded forecasts, as the movies received excellent box office sales. New releases in 2008 have already created orders and generated sales for the Group in the 2007/08 financial year, and this momentum is expected to be sustained to contribute to the performance in fiscal 2008/09.
The Group’s strategy to focus on movie-related toys has also helped extend the traditional peak season, from June to September for Thanksgiving and Christmas shipments, to virtually all year round. This allows the Group to fully utilize its manufacturing capabilities and increase manpower productivity.
The electrical appliances segment recorded turnover of HK$617,505,000, 11 times over the previous year. It specializes in AI appliances, highlighted by the range of vacuum cleaning robots developed with the NASDAQ-listed iRobot Corporation (“iRobot”).
As market acceptance of the new vacuum cleaning robots is very positive, the segment will step up cooperation with iRobot to produce iRobot Roomba and to develop and manufacture other AI electrical household appliances. The Group is optimistic about the progress of such negotiations. It is expected that strong sales will continue to play a pivotal role in driving this segment’s further development. After the initial burst of phenomenal growth, the Group expects the pace of sales to ease off to a healthy longer term level of sustainable growth.
The motors operation generated external sales of HK$275,074,000 for the year under review, up 21% year on year. The segment continues to broaden its predominantly toys-focused customer base to include customers from other sectors, including automotive, household and personal care products, and office automation and audio-visual equipment. To cope with business growth and market development requirements, the Group plans to increase machinery and equipment for this segment.
Order books for the Group’s core operations are strong, and it is poised to enjoy another year of good performance. Its ongoing sales target is to maintain the high levels of orders achieved during the current reporting year. The Group also maintains a strong financial position to support business development activities.
As at March 31, 2008, the Company had aggregate cash in hand of HK$100 million and a net asset value of HK$790 million. Current ratio (current asset divided by current liabilities) stood at a healthy level of 1.9 times.
About Kin Yat Holdings Issued by : Through :
Hong Kong, July 21, 2008 - Toys, electrical appliances and motors manufacturer Kin Yat Holdings Limited (HKEx: 638) announced that in the year to March 31, 2008, turnover rose 78% to a record level of approximately HK$1,637,242,000. Profit attributable to equity holders of the Group grew 75% to another record level of HK$117,268,000, primarily benefiting from economies of scale. The Group declared a final dividend of HK5.5 cents, which together with the interim dividend of HK4.5 cents, represents a payout ratio of 35%.
Year ended March 31,
2008
2007
HK$ '000
HK$ '000
Turnover
1,637,242
920,944
Toys and related products739,347
616,809
Electrical appliances617,505
50,418
Motors (sales to external customers only)275,074
226,747
Material development5,316
26,970
Net profit attributable to equity holders of the Company
117,268
67,183
Segment Results from operating activities
Toys and related products53,835
44,055
Electrical household appliances74,816
867
Motors24,092
44,364
Material development(13,117)
(3,767)
Final dividend per share
HK5.5 cents
HK5.0 cents
Final dividend per share
HK4.5 cents
HK2.0 cents
Earnings per Share
- Basic
HK28.71 cents
HK16.57 cents
- Diluted
HK28.66 cents
HK16.53 cents
Kin Yat Holdings Limited (HKEx: 638) is an industrial group with a niche in electronic and mechanical productions. It has a stretch of toy, electrical appliances and motor manufacturing businesses, all based on its strong cost-effective engineering and production platform in Shenzhen and Shaoguan, China.
Kin Yat Holdings Limited
t6.communications limited
Angus Ho or Jeannie Ng
tel: 2511 8388 / fax: 2511 8238
email: enquiry-at-t6pr.com (use "@" to replace "-at-")
URL : http://www.t6pr.com