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- Revenue Jumps by 37.1% to RMB421 million
- Gross profit increases by 32.9% to RMB149 million
- Net profit surges 13.3% to RMB80 million |
HONG KONG, Mar 25, 2013 - (ACN Newswire) - Merry Garden Holdings Limited ("Merry Garden" or the "Group"), a fast-growing wooden leisure products enterprise in the PRC, announced its first annual results for the year ended 31 December 2012 after its successful listing on the Main Board of The Stock Exchange of Hong Kong Limited (HKSE:1237) on 6 July 2012.
For the year ended 31 December 2012, the Group's revenue amounted to RMB421.2 million, representing a growth of 37.1% from last year driven by the increase in sales of timber villa products and their related parts and structures. Gross profit increased by 32.9% to RMB149 million, while gross profit margin remained at a similar level of 35.3% (2011: 36.4%). During the year under review, profit attributable to equity shareholders of the Company for the year increased by 13.3% to RMB80 million. Basic earnings per Share was RMB9 cents. The Board of Directors recommends payment of a final dividend of 1.3 HK cents per share for the year ended 31 December 2012.
Mr Wu Zheyan, Chairman and Chief Executive Officer of Merry Garden, said, "I am very delighted to announce our first annual results after our listing on the HKSE. The Group's listing has marked an important milestone in its development history and has also presented new opportunities for stronger future development. During the year under review, we have achieved considerable sales growth due to the rapid development of tourism and leisure activities, as well as urbanisation with both trends stimulating a strong domestic demand for leisure products. Furthermore, our promising results were also in part attributable to its sound international business."
Merry Garden manufactures and distributes a wide range of wooden leisure products to overseas and focuses on the PRC market while emphasizing the development of its self-branded "Merry Garden" products. Thanks to the Group's constant efforts in marketing and commitment to providing high-quality services, sales of self-branded products have been outstanding. On the international business front, despite the uncertainties in the global economic environment, Merry Garden's business has remained stable. In the second half of 2012, there was an increasing demand for timber villa products and related items in North America which significantly boosted Merry Garden's products sales.
Since the listing on 6 July 2012, the Group has established two flagship stores and five self-operated stores in Shanghai and other major cities in Fujian and Jiangsu including, Xiamen, Ningbo, Suzhou, etc, with thriving tourism and leisure activities. In addition, the Group is planning to establish no fewer than 18 self-operated stores in major cities in the PRC, in order to enhance brand awareness and market share of its own branded.
In February 2013, the State Council of the PRC published the "Outline of National Tourism and Leisure," which set out the direction of promoting tourism and leisure facilities with traditional Chinese characteristics. Measures include encouraging building leisure and recreational facilities, construction of countryside villas etc. It is believed this directive will stimulate the demand for the Group's timber villa products and outdoor furniture products. The Group continues setting up self-operated retail stores and flagship stores in the PRC, and will expand its retail network to Guangdong, Hainan and Jiangxi in 2013. The Group expects export sales to be supported by the positive North American housing starts data which reflects the starting of construction of privately owned new houses in a given period. The Group has explored new international markets such as Australia and the Maldives, and will continue to explore new markets to ensure stable growth in the international markets. In order to capture the opportunity of growth, the new production lines are to commence production in early April 2013. In the meantime, the Group is consolidating its production facilities into a single location, thus management believes the Group is well-positioned to achieve the sustained development.
On 8 March 2013, the Group entered into a land resumption agreement with the Land Reserve Centre of Zhangping, Fujian Province in relation to a resumption of eight parcels of land at a consideration of RMB62.4 million. It is anticipated that the Company will record a gain before taxation of RMB50.0 million from the Land Resumption. The two production lines are to be relocated to a piece of land that is nearby the Group's principal production plants. The relocation should enhance the integration of resources and operations as well as improve production efficiency.
Mr Wu concluded, "The national policy to encourage the national tourism and leisure industries as well as the strongly rising demand in overseas markets for leisure products has created a favourable environment for continued growth. By leveraging the Group's outstanding product quality, the well-established 'Merry Garden' brand, state-of-the-art wood processing technologies and new production lines about to commence production, the management believes that the Group is well-positioned to capture the opportunities arising from economic recovery and market growth."
Contact:
Strategic Financial Relations Limited
Brenda Chan
+852 2864 4833
brenda.chan@sprg.com.hk
Vanessa Zhang
+852 2114 4981
vanessa.zhang@sprg.com.hk
Sharon Lau
+852 2114 4987
sharon.lau@sprg.com.hk
Fax: +852 2527 1196 / 2804 2789
www.sprg.com.hk
Topic: Earnings
Source: Merry Garden Holdings Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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