Monday, November 30, 2020
Martin Hennecke
HKEx Stock Code : 01322 
Corporate Profile
The Group is a precision engineering solutions provider and machine tool manufacturer and distributor serving customers from a wide range of industries, including the precision machine tool engineering, construction materials, electronics/semi-conductor, automotive, oil, gas and marine, and aerospace industries.

Business Review - For the year ended December 31, 2012

2012 was a milestone year for the Group as the Company successfully listed on the Main Board of the Stock Exchange on 13 April 2012. The listing not only enhanced our corporate image and financial standing but also provided us access to the capital markets to fund our future growth and business development.

During the year, the Group continued to focus on its key business fundamentals. In spite of the continued uncertainties and slowdown in the worldwide economy, we were able to grow our revenue by 8.6% as compared to 2011, primarily driven by the increase in revenue from our precision and engineering solutions projects of 13.5%, sales of CNC machining centres of 73.7% and after-sales technical support services of 323.7%. These increases were primarily due to the increases in precision and engineering solutions projects and sales of CNC machines to customers in the aviation manufacturing, oil and gas, precision engineering and automotive sectors. Revenue from our sales of cement production equipment dropped by approximately 36.0% primarily due to the slowdown in the construction sector brought about by the continued cooling measures by the Chinese government on the property sector. Revenue from sales of components and parts declined by approximately 29.4% due to the general slowdown in sales of components and parts during the year. However, revenue from our after-sales technical support services increased due to the increase in demand for our support services, in line with our increase in our sales in precision and engineering solutions and CNC machines.

During the year, we continued to maintain our key markets including, Singapore, India, Indonesia and Thailand as demand for our solutions and products continued to grow. Our management remains confident of the operating environment of our key markets. With the continued expansion of the Group's business, we will continue to focus on our key business fundamentals and markets and aim to be the priority choice for our customers by providing premier solutions and service offerings.

During the year, we also expanded our production manufacturing capability in the PRC. With the increase in production capacity, we are better positioned to meet the increase in demand for highend CNC machines.

Business Outlook - For the year ended December 31, 2012

In 2013, the global economy will continue to be threatened by the soverign debt crisis in the Eurozone. Amid the uncertainty and generally more volatile macroeconomic conditions, we continue to remain cautiously optimistic on the performance of the Group.

Moving forward, we anticipate that there will be a greater demand for precision engineering solutions projects, higher end CNC machining centres as well as machine tools for both the aviation manufacturing industry and the oil and gas industries. The Singapore government's initiative to develop the aviation manufacturing industry and the increase in oil and gas activities in the region will continue to fuel the demand for our solutions. In addition, we anticipate to see an increase in demand for higher end CNC machining centres in China as the Chinese government increases its spending on infrastructural, aviation and new energy projects. Under the 12th Five-Year Plan (2011-2015) of the PRC, the Chinese government plans to focus on several key industries, including aviation, marine engineering and new energy (such as wind energy, solar energy) industries.

We will continue to focus on growing our key markets whilst pursuing potential business opportunities in new markets such as Europe. In addition, we will continue to seek improvements in various aspects including broadening our customer base and supply channels and capacity expansion. In line with our strategy to increase our market penetration, we are also cautiously seeking suitable investment opportunities in Asia and Europe.

In spite of the challenging global economy, we will continue to closely monitor macroeconomic trends and policy developments and seek to capture suitable market opportunities and in turn, maximise our shareholders' returns.

Source: CW Group Holdings (01322) Annual Results Announcement
Chairman Wong Koon Lup Issued Capital (shares) 616M
Par Value HKD 0.01 Market Capitalisation (HKD) 1,276M
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