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（Incorporated in Hong Kong under the Companies Ordinance）
（Stock Code: 40）
Announcement of 2014/2015 Final Results of GP Industries Limited
Pursuant to Paragraph 13.09(2) of the Listing Rules, the Board of Directors of Gold Peak Industries (Holdings) Limited is pleased to announce the unaudited consolidated results of GP Industries Limited for the year ended 31 March 2015. GP Industries Group's turnover from continuing operations increased by 2.7% to S$974 million and the net profit attributable to equity holders of GP Industries was S$25.5 million for the year ended 31 March 2015.
Pursuant to Paragraph 13.09(2) of the Listing Rules, the Board of Directors of Gold Peak Industries (Holdings) Limited (the "Company") is pleased to announce the unaudited consolidated results of GP Industries Limited ("GP Industries" and together with its subsidiaries, "GP Industries Group") for the year ended 31 March 2015. GP Industries is an 85.0%-owned subsidiary of the Company and is listed on the Singapore Exchange Securities Trading Limited.
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GP INDUSTRIES LIMITED UNAUDITED CONSOLIDATED RESULTS For the year ended 31 March 2015 For the year ended 31 March 2014Continuing operations
S$'000 HK$'000 S$'000 HK$'000 (Note) (Note) Turnover 973,770 5,855,669 948,258 5,849,329Discontinued operations
Profit after taxation from | ||
discontinued operations | - - 6,930 | 42,748 |
Profit (Loss) after taxation | 43,673 262,623 (31,273) | (192,907) |
Continuing operations | 25,472 | 153,173 | (16,617) | (102,502) |
Discontinued operations | - | - | 6,930 | 42,748 |
25,472 | 153,173 | (9,687) | (59,754) | |
Non-controlling interests Continuing operations | 18,201 | 109,450 | (21,586) | (133,153) |
Discontinued operations | - | - | - | - |
18,201 | 109,450 | (21,586) | (133,153) | |
43,673 | 262,623 | (31,273) | (192,907) |
Note:-
The Hong Kong dollar equivalents as shown above for illustrative purposes are converted at the average exchange rates for the respective periods.
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REVIEW OF RESULTS
GP Industries Group's revenue for the financial year ended 31 March 2015 (FY2015) increased to S$974 million, 3% higher than the revenue reported in the financial year ended 31 March
2014 (FY2014). Profit before finance costs, exceptional items and share of results of associates for FY2015 increased to S$49.8 million, 26% over the S$39.5 million reported for FY2014. The increase in profit was attributable mainly to higher sales, improved margin and exchange gain, despite higher distribution costs and marketing costs partly due to a higher level of brand building activities.
During FY2015, GP Industries Group reported a net exceptional gain of S$5.6 million, comprised mainly property disposal gains, impairment allowances and restructuring costs, while GP Industries Group reported a net exceptional loss of S$72.5 million in FY2014, comprised mainly impairment allowances and fair value adjustments. During FY2015, the associates contributed a S$19.2 million profit before taxation in aggregate, compared to S$22.7 million for FY2014, which included a S$10.4 million property disposal gain.
Profit before taxation for FY2015 amounted to S$65.7 million, compared to a loss of S$21.0 million for FY2014. Total profit after taxation attributable to equity holders for FY2015 was S$25.5 million, compared to a loss of S$9.7 million for FY2014, which included a profit from discontinued operations of S$6.9 million.
Based on the weighted average of 494,104,991 shares issued (2014: 502,857,970 shares), basic earnings per share for FY2015 was 5.16 Singapore cents, compared to a loss of 1.93 Singapore cents per share for FY2014, which included an earnings per share of 1.38 Singapore cents from discontinued operations.
Electronics and Acoustics Business - Revenue from the electronics and acoustics business decreased by 5% during FY2015 when compared to FY2014. Sales of electronics products decreased by 4% and sales of acoustics products decreased by 6%. By region, sales of acoustics products to the Americas increased by 3% while sales to Asia and Europe declined by 12% and
7% respectively. During FY2015, this business segment reported a net exceptional loss of S$0.3 million, which comprised a property disposal gain of S$1.4 million and a restructuring charge of S$1.7 million incurred by a subsidiary making components in China and a sales subsidiary for the acoustics business in Europe. In FY2014, an exceptional restructuring cost of S$1.2 million was reported. Total profit contribution from the electronics and acoustics business for FY2015 decreased by 7% when compared to FY2014.
Automotive Wire Harness Business - The revenue for the export oriented automotive wire harness business grew by 43% during FY2015 over FY2014. The growth was due to increased demand for camera wire harnesses mandated by new safety regulations in the US and sales increase in China. Excluding the profit contributed by the discontinued operations in FY2014, profit contribution from the automotive wire harness business increased by 58% in FY2015 over that of FY2014.
Battery Business - The revenue of GP Batteries International Limited ("GP Batteries") for FY2015 was S$719 million, 3% higher than the revenue in FY2014. Sales of primary batteries increased by 7% and sales of rechargeable batteries declined by 8%. Total revenue for the fourth financial quarter which ended on 31 March 2015 was 3% higher than that for the corresponding quarter last year.
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During FY2015, GP Batteries recorded a S$6.9 million net exceptional gain, which comprised gains of S$10.2 million from the disposal of properties and a S$3.3 million charge for restructuring costs. During FY2014, GP Batteries reported a net exceptional loss of S$55.2 million, mainly due to restructuring costs relating to the lithium rechargeable battery factory in Taiwan and the Vectrix Group of companies.
The associated companies of GP Batteries reported a pre-tax profit of S$0.7 million during FY2015, compared to a loss of S$4.7 million from FY2014. The improvement was due mainly to cessation of the loss-making Vectrix business.
For FY2015, GP Batteries reported a profit attributable to its equity holders of S$13.0 million, compared to a loss of S$52.0 million for FY2014.
Other industrial investments - This business segment includes GP Industries Group's investments in Meiloon Industrial Co., Ltd. ("Meiloon"), Linkz Industries Limited and CIH Limited ("CIH"). This business segment contributed a S$3.1 million profit for FY2015, compared to a loss of S$4.6 million for the same period last year. During FY2015, this business segment reported an exceptional impairment loss of S$1.0 million from the disposal of a subsidiary by CIH. (In FY2014, this segment reported a total exceptional loss of S$16.1 million which were from winding down of the CIH Group of companies and impairment allowances for GP Industries Group's investment in Meiloon, and a property disposal gain contributed by Meiloon.)
PROSPECTS
Market demand in Europe and some parts of Asia remained weak. Market demand for some of GP Industries Group's products started to soften in China. However, GP Industries Group's businesses in the US remain stable. Lower commodity prices and a slightly weaker Renminbi contributed to lower the impact of increasing manufacturing costs in China.
GP Industries Group will continue to invest in product innovation and in further developing its brands and global distribution network. GP Industries Group is also expanding the production capacity for some segments of the battery business. The new factory expansion for the electronics and acoustics business should be operational by the second quarter in FY2016 and is expected to bring new businesses and more competitiveness to GP Industries Group's business shortly afterwards. GP Industries Group will continue to automate its factories to improve productivity and to streamline its business processes to counter the steadily increasing manufacturing costs in China.
By Order of the Board WONG Man Kit Company Secretary
Hong Kong, 28 May 2015
www.goldpeak.com
As at the date of this announcement, the Board consists of Messrs. Victor LO Chung Wing (Chairman & Chief Executive), LEUNG Pak Chuen, Richard KU Yuk Hing, Andrew CHUANG Siu Leung and Brian LI Yiu Cheung as Executive Directors, and Messrs. LUI Ming Wah, Frank CHAN Chi Chung and CHAN Kei Biu as Independent Non-Executive Directors.
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