Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
GOOD FRIEND
HKEx Stock Code : 02398 
 
Corporate Profile
The Group is principally engaged in the design and production of CNC machine tools, design and construction of three-dimensional car parking garage structures and design and assembling of forklift trucks.

Business Review - For the year ended December 31, 2012

In 2012, the global economy was still in a downtown, and China's economic growth continued to slow down. According to the economic data released by National Bureau of Statistics of China, the gross domestic product (GDP) of China was approximately RMB51.9 trillion in 2012, respectively an increase of 7.8% as compared to 2011. The mainstream product of the Group CNC machine tools focus mainly on China market. Sales orders for the Group's CNC machine tools business were also affected by that. For the year ended 31 December 2012, sales volume and sales revenue of CNC machine tools amounted to 2,360 units and approximately RMB1,220.30 million respectively, both representing a decrease when compared to 2011. Moreover, the gross profit margin of CNC machine tools business decreased to approximately 20.1% during the year. This was mainly attributable to the increase in raw material prices in Mainland China.

Despite being affected by the slowdown of China's economic growth, the Group's high-end CNC machine tools products still recorded satisfactory sales revenue during the year. Sales revenue of double column machining centre (manufactured at factory in Hangzhou) and milling centre (manufactured at Rambaudi factory in Italy) amounted to approximately RMB203.87 million for the year, accounted for approximately 16.7% of sales revenue of the Group's CNC machine tools, whilst selling price of the Rambaudi milling centre is approximately 10 times or more the average selling price of the Group's CNC machine tools products. These high-end products could optimise the product portfolio of the Group, and strengthen its core competitiveness.

Business Outlook - For the year ended December 31, 2012

Looking ahead into 2013, the global economic environment remains uncertain. The Group will continue to face challenging operating environment. Nevertheless, China is the largest machine tools consuming country. The formulation of the 12th Five Year Plan (2011-2015) by the central government of China would stimulate the demand of machine tools from the industries of high-speed railway, aerospace, motor vehicle and energy especially demand of those hi-tech CNC machine tools. Moreover, due to increasing labor shortage in China, manufacturers are prompted to use more automatic equipment such as CNC machines in order to raising production efficiency. This in turn will benefit the Group's CNC machine tools business. On the other hand, the high end CNC machine tools products of Jobs and Rambaudi not only optimise the product portfolio of the Group and increase its additional value, but also enhance application sector of customer of the Group as well as maintain the Group's competitive edge in the China market.

In future, along with the continued implementation of the stable economic policies by the central government of China, the economy of China is expected to maintain its growth momentum, the management is optimistic on the long-term development prospects of the Group. The Group will continue to strengthen its business foundation under a consistent cautions manner under tough market environment. The management believes that with its extensive sales network and comprehensive after-sales service, solid business foundation as well as outstanding product quality, the Group is capable of meeting customers' different needs and continue to strengthen its market position. The management will also strive to control operating costs for achieving better operating results, in order to bring favorable returns to the shareholders of the Company.

Source: Good Friend Int'l (02398) Annual Results Announcement
Chairman Chu Chih-Yaung Issued Capital (shares) 403M
Par Value HKD 0.01 Market Capitalisation (HKD) 1,089M
 
Login
Password
Register  Forget Password
Advanced Search
© 2024 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend