Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
GOLD PEAK
HKEx Stock Code : 00040 
 
Corporate Profile
Principally engaged in development, manufacture and distribution of electronics and acoustics products, and automotive wire harness; as well as development, manufacture and distribution of batteries and battery related products through the investment in a listed associate.

Business Review - For the year ended March 31, 2013

GP Industries (81.4% owned by Gold Peak as at 31 March 2013)

On 21 December 2012, GP Industries entered into a conditional equity transfer agreement to divest its entire 50% equity interest in Shanghai Jinting Automobile Harness Limited (the Ħ§Jinting DisposalĦ¨). The Jinting Disposal was completed on 20 May 2013. In early June, the Group received its share of dividend and consideration money in the aggregate amount of approximately HK$380 million under the agreement.

Despite weak market conditions in most key markets, GP Industries' revenue in Singapore dollar terms and gross profit margin increased in the financial year.

The associates contributed lower profit in aggregate, due mainly to the losses brought by the 49.7% owned associate, GP Batteries International Limited.

Electronics and Acoustics

ĦE Revenue from the electronics business increased by 7%, mainly from increased sales of professional electronic products.

ĦE Revenue from the acoustics business decreased by 4%. Sales of acoustics products to Asia increased by 10%, sales to America held steady and sales to Europe decreased by 17%.

ĦE Increased sales, new product introductions, process re-engineering and more stable material costs helped improve the profitability of the electronics and acoustics business.

ĦE Share of profit from associated companies in the components business also increased.

ĦE Total profit contribution from the business segment increased by 67%.

Automotive wire harness

ĦE Revenue from Jinting decreased by 19% in Renminbi terms while profit after taxation decreased by S$2.0 million.

ĦE Revenue from the export oriented automotive wire harness business grew strongly.

ĦE Total profit contribution from the business segment decreased by 14%.

Other investments

ĦE Linkz Industries Limited contributed more pre-tax profit.

ĦE Meiloon Industrial Co., Ltd. also brought a pre-tax profit, compared to a pre-tax loss last year.

GP Batteries (49.7% owned by GP Industries as at 31 March 2013)

ĦE Revenue for the year decreased by 7%.

ĦE GP Batteries recorded impairment charges of S$18.4 million.

ĦE Loss after taxation attributable to equity holders of GP Batteries was S$16.2 million, compared to a profit of S$6.5 million last year.

Business Outlook - For the year ended March 31, 2013

It is expected that Europe will continue to be weak in the near future and this could affect some of the Group's businesses in Europe. Consumer demand in the US, China and some Asian markets will likely remain stable.

While the core businesses of GP Batteries remain sound, the management will take appropriate actions to contain losses from its loss-making business units.

The Group will continue its strategy to invest in product innovation, brand building and global distribution network.

The Jinting Disposal will strengthen the Group's financial position and further reduce its gearing ratio. However, profit contribution from the automotive wire harness business segment is expected to decrease. With the proceeds from the Jinting Disposal, the Group will expand the production capacity for its electronics and acoustics business and will further automate its factories.

Source: Gold Peak Industries (00040) Annual Results Announcement
Chairman Victor LO Chung Wing Issued Capital (shares) 785M
Par Value HKD 0.5 Market Capitalisation (HKD) 675M
 
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