Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
JOLIMARK
HKEx Stock Code : 02028 
 
Corporate Profile
The principal activities are manufacture and sale of printers, tax control equipment and other electronic products manufacturing in the People's Republic of China (the “PRC“).

Business Review - For the year ended December 31, 2012

Printer and Tax Control Equipment Business

The revenue of the printer and tax control equipment business of the Group for the year ended 31 December 2012 decreased by approximately 25% from the previous year to approximately RMB342,099,000, representing approximately 75% of the revenue of the Group. The decrease in revenue was mainly attributable to the relatively significant decline in the sales generated from the PRC market as compared with that of the previous year due to the anaemic domestic demand.

Other Electronic Products Manufacturing Business

The revenue of the other electronic products manufacturing business of the Group increased by approximately 11% from the previous year to approximately RMB114,776,000, representing approximately 25% of the revenue of the Group.


Business Outlook - For the year ended December 31, 2012

In 2012, China's domestic economic growth continued to slow down, which coupled with the European debt crisis and the unstable global economy, resulted in the pessimistic market expectation towards future economic growth. China has also slackened the pace of implementing tax control measures, which reduced the demand of the Group's tax control printer products in the PRC market and led to a decline in sales. The Central Committee and the State Council of the PRC have made timely preadjustments and micro-adjustments, as well as launched loose monetary and fiscal policies successively according to the economic environment. Such measures have already had a positive effect in stabilizing economic growth. Currently, the economy has shown initial signs of stabilization. The Group expects the printer market to gradually regain its strength in 2013. Nevertheless, the Group still expects to encounter numerous challenges in 2013.

On 13 July 2012, the State Administration of Taxation of the PRC promulgated the ‘‘Administrative Measures of Online Invoices'' (Consultation Draft) (《網絡發票管理辦法》(徵求意見稿)), explicitly stating the intention of the State to further promote online invoices.

In the same month, in accordance with the instruction of the Cai Shui Circular [2012] No. 71 (財稅 [2012] 71號文), the pilot reform on value-added tax was extended to 8 provinces and cities, including Beijing. Such pilot reform program on value-added tax is expected to be extended to other industries and regions in China in 2013. The promotion of online invoice and the acceleration of reform on valueadded tax may become the driving forces for the recovery in demand of printers and tax control equipment.

Looking forward to 2013, the Group will launch our newly developed product, ‘‘喜悅之星''. The product was developed based on years of research and development and market experiences in matrix printers, and is characterized as a functional and high-quality product with outstanding price/ performance ratio. It is expected that ‘‘喜悅之星'' will substantially enhance the market competitiveness of our products. Invoice ink-jet printers will also be introduced in 2013. It will be unique to the market, which can be used for various applications, such as invoice and hospitals. The separable ink cartridges and inkjet printer heads and advanced technologies, such as fast-drying inks, also render ‘‘喜悅之星'' best of its kind. We continue to improve our mini printers product line which starts to gather competitive strength. For real-object projectors, the marketing and promotion system will be further improved, and the unique functions of the products are gaining recognition from the users gradually. It is expected that real-object projectors will contribute revenue to the Group in 2013. Besides, the Group will continue to strive to improve operating efficiency, strengthen internal management, and trim inventory and receivables. At the same time, we will pay closer attention to the introduction of the State's tax control and tax reform policies, in order to cater for the latest market development. We will continue to conduct research and development on printers and tax control equipment which are more cost competitive and more in line with the demand in the PRC market while improving the quality of our existing products. In respect of other electronic products manufacturing business (EMS), the Group will continue to focus on the small and medium overseas customers specializing in optical, mechanical and electrical integration products, in order to expand to and develop new businesses with higher gross profit margin.

Source: Jolimark Hold (02028) Annual Results Announcement
Chairman Au Pak Yin Issued Capital (shares) 560M
Par Value HKD 0.01 Market Capitalisation (HKD) 515M
 
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