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- Brisk growth of China's mid to low-end smartphone market drove strong business growth of over 50%
- Pre-installation of mobile games publishing app and SOUL(R) in Greater China market boost future growth |
HONG KONG, Nov 25, 2013 - (ACN Newswire) - AV Concept Holdings Limited ("AV Concept" or the "Group"; stock code: 595) pleased to announce the interim results of the Group for the six months ended 30 September, 2013 ("reviewing period"). During the reviewing period, the Group recorded a turnover of HK$1,441,000,000, representing a growth of 9.3% (2012:HK$1,318,500,000). Gross profit was HK$85,800,000 (2012: HK$108,200,000). The net profit rose by 55.5% to HK$@ (2012: HK$13,000,000). EBITDA of the group substantially rose by 63.4% to HK$38,400,000 (2012: HK$23,500,000). During the reviewing period, the financial position of the Group has also been strengthened as follows: total debt to total equity ratio dropped from 83% to 73%; and current assets to current liabilities ratio rose from 122% to 129%. Under the exponential growth of China's smartphone market, the semiconductor distribution business picked up the overall performance of the Group.
Summary
-- Thanks to the exponential growth of China's smartphone market which drove growth from semiconductor distribution business, net profit rose by 55.5% to HK$20,300,000 (2012: HK$13,000,000);
-- EBITDA substantially rose by 63.4% to HK$38,400,000 (2012: HK$23,500,000);
-- Turnover increased by 9.3% to HK$1,441,000,000 (2012: HK$1,318,500,000);
-- Gross profit was HK$85,800,000 (2012: HK$108,200,000) mainly due to a transition change of product mix of lower portion of higher-gross-profit-margin;
-- Total debt to total equity ratio dropped from 83% to 73%; and current assets to current liabilities ratio rose from 122% to 129%.
During the reviewing period, the semiconductor business of the Group recorded a revenue of HK$1,363,100,000, representing a growth of 17.7% (2012: HK$1,158,400,000); EBITDA significantly increased by 179.2% to HK$50,900,000 (2012: HK$18,700,000). In accordance with current accounting policies, turnover of the Group's jointly-controlled entity, AVP Electronics Limited ("AVPEL") has not been consolidated in the Group's financial statements since the reviewing period of last year, but AVPEL still recorded a significant revenue of HK$1,932,800,000, representing a growth of 53.6% during the reviewing period that mainly brought forth by the semiconductor distribution of Samsung Electronics Co., Ltd. ("Samsung Electronics") in China. Of which, the revenue growth from the exclusive distribution of Samsung CMOS images sensors was the most significant, while the growth in other products under distribution was also substantial.
Thanks to the foresight of management, the entry into the mid to low-end smartphone market for the semiconductor distribution business has become a key growth driver due to the sharp increase in shipments of mid to low-end smartphones in China as nowadays Chinese consumers tend to purchase local smartphone brands with similar performance of international tier-1 smartphone brands at a lower average selling price.
During the reviewing period, EBITDA loss of consumer electronic product business narrowed to HK$7,600,000 (2012: loss HK$8,300,000); revenue decreased by 50.4% to HK$77,900,000 (2012: HK$157,100,000). With a view to gearing up efforts in promoting up-and-coming latest headphone series of SOUL(R) in the second half of FY2013, in the reviewing period, the Group therefore focused on selling old headphone models that led to the drop of revenue of consumer electronic product business. As short as two years, the brand awareness of SOUL(R) has swiped across the world and SOUL(R) has achieved a forefront position in the premium headphone market in Europe, United States and Asia regions with a strong brand's foothold in the world. To further tap into the Greater China market, in May 2013, the Group appointed international megastar, PSY (Park Jae-Sang), as the exclusive global brand ambassador to hit the market with his high recognition in the region. SOUL(R) will unveil its Greater China promotion in the second half year in Beijing and Shanghai.
In the reviewing period, the venture capital business of the Group recorded a turnaround in positive EBITDA of HK$3,800,000 compared to the same period last year (2012: loss HK$16,500,000). It was mainly attributable to appreciation of investment value of the 35.9% stake in Integrated Energy Limited (Formerly Nitgen & Company Co., Ltd.).
Commented on the interim results of 2013, Mr. Billy So, Chief Executive Officer of AV Concept said, "Looking forward, we are full of confidence in the future development of both of our investments in Me2on, a Korea mobile and Internet games development and publication company, and Koocell, an innovative mobile game developer and a mobile games publishing platform committed in creating most sought-after mobile apps and games in town. The Group has been planning to pre-install the mobile games publishing app "Free4u" - Koocell in the smartphones manufactured by semiconductor distribution business clients. In turn, to publish Me2on's mobile games and other games developed by other game developers onto Koocell's game publishing platform in order to take advantage of the widespread growth of Koocell app pre-installed in the fast-selling mid to low-end smartphones. We will also expand the sales network of headphone to online sales platform in China and we believe online stores would become one of the major sales channels of our products."
"Moreover, to infuse SOUL(R) headphone products with "Active Lifestyle" element, in the second half of FY2013, the Group will focus on developing functional headphones, namely two key series, "Combat" and "Performance". The former series is suitable for vigorous sports such as running, boxing and cycling etc; while the later series is suitable for daily use for sporty users. The enhancement of our product range progresses along with our target customers' evolving lifestyle that putting more emphasis on healthy sports life which we believe will bring very positive impact to our sales in future."
Contact:
Joanne Chan +852-9616 2676,
Ian Fok +852-9348 4484
Tel: +852 3752 0431 / +852 3679 3671
Fax: +852 3753 2899
Email: jchan@lbs-comm.com / ifok@lbs-comm.com
Topic: Press release summary
Source: AV Concept Holdings Limited
Sectors: Electronics, Daily Finance, IT Individual, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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