Monday, August 8, 2022
Martin Hennecke
HKEx Stock Code : 00931 
Corporate Profile
The principal activities of the Group are properties investment, distribution of computer components and information technology products.

Business Review - For the year ended December 31, 2012

During the year, turnover of the Group increased significantly from approximately HK$3 million to approximately HK$22 million. The significant increase in turnover was mainly resulted from the increase in the realized or unrealized gain on trading of equity securities listed in Hong Kong from a net loss of approximately HK$4 million to a gain of approximately HK$19 million during the year.

In order to broaden the income base of the Group and for long term investment purpose, the Group invested in three properties in the second half of 2011. Rental income of HK$766,000 was derived from two residential properties located in Kwu Tung, New Territories (the ˇ§Kwu Tung Propertyˇ¨) and in Central Mid-levels (the ˇ§Central Propertyˇ¨) during the year 2012. The tenancy agreement of the Kwu Tong Property was expired on 7 August 2012 and the property remains vacant ever since. The Central Property was leased out on 1 September 2012 with a monthly rental of HK$70,000 for two years. The other residential property located in the Repulse Bay (the ˇ§Repulse Bay Propertyˇ¨) is under major external building renovation work which is expected to be finished at around the end of the first quarter of 2013. The Group continued to seek for tenants of the vacant properties for rental income purpose.

On the other hand, an independent professional valuation of the three properties as at 31 December 2012 produced a valuation surplus over the original costs of approximately HK$3.9 million, which was recognised in the consolidated statement of comprehensive income during the year.

Due to the continuous adverse market conditions of the business of distribution of computer components and information technology products in the last few years, the Directors had ceased all trading business in the year 2012; no revenue was recorded during the year as compared with a total revenue of approximately HK$6 million generated in the year 2011. The Group does not envisage to continue the business of distribution of computer components and information technology products until such time the market conditions have improved satisfactorily.

In conclusion, due to the good results generated from the trading of securities and the fair value gain on the investment properties, the net profit of the Group increased from approximately HK$6 million for the last year to a profit of approximately HK$20 million for the year 2012.

Business Outlook - For the year ended December 31, 2012

Besides the existing businesses, the Group continued to look for new business opportunities to diversify its business into industries that provide better returns for the Shareholders.

Source: Artel Solutions (00931) Annual Results Announcement
Chairman Kan Che Kin, Billy Albert Issued Capital (shares) 8,686M
Par Value HKD 0.01 Market Capitalisation (HKD) 2,866M
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