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(Incorporated in Hong Kong under the Companies Ordinance)
(Stock Code: 40) Announcement of 2015/2016 First Quarter 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 quarter ended 30 June 2015. GP Industries Group's turnover increased by 7% to S$250 million and the net profit attributable to equity holders of GP Industries increased by 32.5% to S$7.0 million for the quarter ended 30 June 2015.
Pursuant to Paragraph 13.09(2) of the Listing Rules, the Board of Directors of Gold Peak Industries (Holdings) Limited (the "Company") is pleased to announce the unaudited consolidated results of GP Industries Limited ("GP Industries" and together with its subsidiaries, "GP Industries Group") for the quarter ended 30 June 2015. GP Industries is an 85.2%-owned subsidiary of the Company and is listed on the Singapore Exchange Securities Trading Limited.
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GP INDUSTRIES LIMITED UNAUDITED CONSOLIDATED RESULTS FOR THE QUARTER ENDED 30 JUNE 2015/2016 2014/2015 S$'000 HK$'000 S$'000 HK$'000Turnover | 250,404 | 1,440,249 | 233,601 | 1,439,753 |
Cost of sales | (187,160) | (1,076,488) | (174,161) | (1,073,406) |
Gross profit | 63,244 | 363,761 | 59,440 | 366,347 |
Other operating income | 1,695 | 9,749 | 1,882 | 11,599 |
Distribution costs | (23,921) | (137,586) | (21,886) | (134,890) |
Administrative expenses | (29,519) | (169,784) | (26,817) | (165,281) |
Exchange loss | (1,095) | (6,298) | (1,160) | (7,149) |
Other operating expenses | (1,475) | (8,484) | (1,217) | (7,501) |
Profit from operations | 8,929 | 51,358 | 10,242 | 63,125 |
Finance costs | (2,261) | (13,005) | (2,187) | (13,479) |
Exceptional items | 1,239 | 7,126 | - | - |
Share of results of associates | 7,156 | 41,159 | 4,925 | 30,354 |
Profit before taxation | 15,063 | 86,638 | 12,980 | 80,000 |
Taxation | (3,757) | (21,609) | (4,027) | (24,820) |
Profit after taxation | 11,306 | 65,029 | 8,953 | 55,180 |
Attributable to: | ||||
Equity holders of GP Industries | 6,993 | 40,222 | 5,276 | 32,518 |
Non-controlling interests | 4,313 | 24,807 | 3,677 | 22,662 |
11,306 | 65,029 | 8,953 | 55,180 | |
Earnings per share | S cents 1.44 | HK cents 8.28 | S cents 1.06 | HK cents 6.53 |
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 quarter which ended on 30 June 2015 ("Q1FY2016") increased to S$250 million, an increase of 7% over the revenue reported in the financial quarter ended 30 June 2014 ("Q1FY2015"). However, when expressed in US dollar terms, revenue remained flat due to the appreciation of US dollar against Singapore dollar. Decrease in revenue from the weak European market negated the small revenue growth from the US and Asian markets.
During Q1FY2016, GP Industries Group reported a net exceptional gain of S$1.2 million, being the write-back of unutilised warranty cost provision relating to the disposal of a joint venture in
2013, upon the expiry of the warranty period.
Profit after taxation attributable to equity holders of GP Industries for Q1FY2016 was S$7.0 million, compared to S$5.3 million for Q1FY2015.
Based on the weighted average of 486,821,658 shares in issue (Q1FY2015: 498,990,944 shares), basic earnings per share for Q1FY2016 was 1.44 Singapore cents, compared to 1.06 Singapore cents per share for Q1FY2015.
Electronics and Acoustics Business - Revenue from the electronics and acoustics business increased by 2% in Singapore dollar terms over Q1FY2015. Sales of electronics products decreased by 3% while sales of acoustics products increased by 11%, all in Singapore dollar terms. By region, sales of acoustics products in Europe increased by 13% despite the weak market as GP Industries Group's investments into distribution started to show results. Sales of acoustics products to Asia increased by 13% as the result of new market development efforts. Profit contribution before taxation from associates decreased slightly in Singapore dollar terms. Total profit contribution from the electronics and acoustics business decreased by 14%.
Automotive Wire Harness Business - The revenue for the export-oriented automotive wire harness business grew by 10% when compared to Q1FY2015. Sales to customers in the US slowed down while sales to customers in China increased. Excluding exceptional items, profit contribution from the automotive wire harness business decreased by 14% when compared to Q1FY2015. During Q1FY2016, this business segment wrote-back a S$1.2 million unutilised warranty cost provision relating to the disposal of the previously 50%-owned automotive wire harness manufacturing joint venture, Shanghai Jinting Automobile Harness Limited, in 2013.
Battery Business - The revenue of GP Batteries International Limited ("GP Batteries") for Q1FY2016 was S$189 million, 9% higher than the revenue in Q1FY2015 in Singapore dollar terms. Sales of primary and rechargeable batteries increased by 6% and 21% respectively. Sales in the Americas and Asia increased by 11% and 13% respectively while sales in Europe decreased by 7%. For Q1FY2016, GP Batteries reported a profit attributable to its equity holders of S$2.8 million, compared to S$2.3 million for Q1FY2015.
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Other Industrial Investments - This business segment includes GP Industries Group's investments in Meiloon Industrial Co., Ltd. ("Meiloon") and Linkz Industries Limited ("Linkz"). Meiloon reported a profit before taxation during Q1FY2016 compared to a small loss in Q1FY2015 while Linkz reported more pre-tax profit. As a result, profit contribution from this business segment has increased.
PROSPECTS
Market demand in Europe and some parts of Asia will likely remain 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 should remain stable. Lower commodity prices and a slightly weaker Renminbi could contribute to reduce the impact of increasing manufacturing costs in China.
GP Industries Group will continue its strategy to invest into technology and product development, build GP Industries Group's brands and further enhance its distribution network. The acquisition of the KEF, Celestion and GP brands in July 2015 rationalised the ownership structure of the brands and strengthened GP Industries Group's confidence in investing into further development of GP Industries Group's brands.
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, Messrs. LUI Ming Wah, Frank CHAN Chi Chung and CHAN Kei Biu as Independent Non-Executive Directors, and Ms. Karen NG Ka Fai as a Non-Executive Director.
By Order of the Board
Company Secretary
Hong Kong, 6 August 2015
www.goldpeak.com
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