Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
VITOP BIOENERGY
HKEx Stock Code : 01178 
 
Corporate Profile
Principal engaged in manufacturing and trading of multi-functional water generators, BIOenergy products, healthcare food products, and other healthcare products in the PRC, excluding Hong Kong and Macau.

Business Review - For the year ended June 30, 2012

The Group recorded sales revenue of approximately HK$20.48 million, representing a decrease of approximately HK$6.74 million or 24.76% as compared with that of last year. The decrease was mainly attributable to the decrease in the sale revenue from the multi-functional water generators and the healthcare food products approximately HK$3.61 million and approximately HK$3.94 million respectively. The decrease in overall sale revenue was mainly due to the unfashionable marketing mode and the keen competition. The Group's gross profit margin for the year was approximately 34.84% (2011: approximately 42.64%), representing a decrease of approximately 7.80 percentage points from last year.

During the year ended 30 June 2012, provision for other receivables of approximately HK$2.53 million was made after prudent review and assessment of the current market valuation and the recovery of the other receivables by the Board of the Group. For the sake of prudent accounting treatment, the Board decided to make partial provision in respect of other receivables.

The Group's loss for the year amounted to approximately HK$20.04 million, representing a decrease of 14.72% when compared to last year (2011: loss of approximately HK$23.50 million). It was mainly attributable to the decline in the impairment loss of other receivables amounted to approximately HK$2.53 million.

Business Outlook - For the year ended June 30, 2012

Looking forward to the coming year, the management expects the overall business environment remain challenging given the uncertainties arising from the possibility of downturn in Mainland China's macro-economy and highly unpredictable situations of global economy. The Group will continue to be on the alert and modify our existing business strategies to cope with the changing business environment. The management will also closely monitor cash flow, ever mindful of maintaining a strong cash position, which is of utmost importance in these financially turbulent times.

To ensure growth is sustained over the long term, the Group will continue to leverage its research and development expertise to develop products desired by consumers. The Group has been actively exploring new products this year and expecting these products will bring favourable results for the Group in the coming year. The Group continues to optimize its product mix and put more efforts to develop high value-added products to improve its sales.

In the long term, the management expects different investments in Mainland China will provide strong growth opportunities for the Group. The Group is strengthening its expansion of business network in Mainland China as part of the means to achieve long-term sustainable growth.

The Group also adopted measures and exploring other means to meet these challenges and to turn them into opportunities. The management will from time to time seek for investment opportunity in difference industry that could enhance corporate development and broaden the income base of the Group. Meanwhile, the management will continue to review the performance of existing businesses and seek for any investment opportunity in fast growing industry. Should any suitable business opportunity arise, the Group may change its existing business activities and redeploy any assets of the Group. The management remains cautiously optimistic about perpetuating the Group's steady growth over the long term.



Source: Vitop Bioenergy (01178) Annual Results Announcement
Chairman Han Qing Yun Issued Capital (shares) 1,390M
Par Value HKD 0.025 Market Capitalisation (HKD) 132M
 
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