Monday, January 25, 2021
 
Columnist
Martin Hennecke
 
WORLD HOUSEWARE
HKEx Stock Code : 00713 
 
Corporate Profile
Principally engaged in the design, manufacture and marketing of PVC and fabric household products, PVC pipes and fittings and property investment.

Business Review - For the year ended December 31, 2012

For the year ended 31 December 2012, the Group recorded a consolidated turnover of HK$1,074,970,000, representing a decrease of 4.8% from HK$1,129,055,000 last year. Gross profit and gross profit margin were HK$140,292,000 and 13.1% respectively. Profit for the year was HK$10,733,000.

In these days, there are uncertainties clouded with the global economy including the unsettling debt crisis of certain European countries and the staggering retail market of the United States. These factors had all caused immense blows to the export business of PRC manufacturers. In addition, the continuous inflation of PRC has caused an increase of the production and operation costs of the manufacturing business. To cope with these uncertainties of the global economy and increased production cost, the Group had strived hard to control the operation cost and adopted flexible purchasing strategy and eventually the Group could still maintain profit in the operation.

For household products, the uncertainties of the global economy did not affect seriously to its export business as the Group has strong clientele base and good reputation and the household business still maintained marginal profit as the Group was benefitted from the steady plastic raw material prices and its effective control of production cost.

For the PVC pipes and fittings, as the property market of PRC had gradually recovered and there is no fluctuation of the plastic raw material prices, the business was steady and had brought return to the Group.

During the year under review, the turnover of property investment amounted to HK$1,421,000, representing an increase of 37.4% from HK$1,034,000 of the same period last year. Gain arising from fair value changes of investment properties was HK$2,560,000.

Business Outlook - For the year ended December 31, 2012

Looking to the future, the year of 2013 will be a challenging year. The Group however still adopts a positive approach. Given its strong basis and good reputation built up from the past years, it continues to maximize its strength and adopt flexible strategy to cope with the fast changing situation. The Group is still optimistic to the business of household products and PVC pipes and fittings.

For the waste recycling and manufacturing business, the production line for food waste recycling developed by the Group's wholly owned subsidiary South China Reborn Resources (Zhongshan) Company Limited (¡§South China (Zhongshan)¡¨) in its factory at Zhongshan has achieved significant progress in the system optimisation, products testing and quality enhancement, and will be ready for sale of its products in the market. Besides, South China (Zhongshan) has successfully awarded the lease of a site through a public tender in Ecopark Phase 2, Tuen Mun, Hong Kong by the Environmental Protection Department of the Government of Hong Kong Special Administrative Region for the development of food waste recycling projects. The land has been handed over to the Group on 2 January 2013 and is now in the construction phase and applying for the permits for the operation. It is expected that all construction works will be completed and operation will be commenced by early 2014. By then, it is expected that the said waste recycling business may bring good prospects and return to the Group.

Source: World Houseware Hldg (00713) Annual Results Announcement
Chairman LEE Tat Hing Issued Capital (shares) 676M
Par Value HKD 0.1 Market Capitalisation (HKD) 189M
 
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