Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
HING LEE (HK)
HKEx Stock Code : 00396 
 
Corporate Profile
The principal business activities are the design, manufacture, sale and marketing of home furniture products including mainly wood-based furniture and mattresses and licensing of its own brands and product designs.

Business Review - For the year ended December 31, 2012

The unfavourable environments brought by the Chinese Government's macroeconomic austerity measures, as well as various other unfavorable factors have been affecting the operations of the Group.

Many newly built home units were smaller in size. This led to a drop in demand for our large size classical furniture which resulted in diminished turnover in 2012. The Group has allocated more resources to the research and development (¡§R&D¡¨) of new products in response to market changes. In addition, various measures have been implemented to enhance our core competitiveness, in particular, costs control and information technology.



Business Outlook - For the year ended December 31, 2012

To cope with the uncertain market conditions and to strengthen the competitiveness of the Group, the Group has implemented and will continue to take a series of cost cutting programs to reduce its overhead costs and improve operating efficiency. Each department throughout the Group is required to rationalize its individual head counts to keep staff at a minimum.

The Group will continue to strengthen its position in the medium to high-end home furniture market with its plan to explore opportunities on distribution network expansion, as well as collaboration with property developers for home furniture projects. The Group will continue to actively participate in various international furniture exhibitions and marketing promotions and strengthen its design capacity. We will keep abreast of market trends and enhance the cost-saving and execution capabilities of our supply chain so as to optimise the product life cycle and shorten lead times. We will also fully utilise our R&D resources and design talents in order to cater to consumers' specific needs and preferences.

Despite the present difficult operating environment, the Group is optimistic over the long-term prospects of the furniture industry in China. The Group will also explore potential mergers and acquisition opportunities at appropriate time to further secure our market position and hence enhance shareholders' value.

Source: Hing Lee (HK) (00396) Annual Results Announcement
Chairman Sung Kai Hing Issued Capital (shares) 242M
Par Value HKD 0.01 Market Capitalisation (HKD) 172M
 
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