Thursday, March 28, 2024
 
Columnist
Martin Hennecke
 
ADDCHANCE
HKEx Stock Code : 03344 
 
Corporate Profile
Principally engaged in the production and sale of dyed yarn, knitted sweaters and cotton yarn, the provision of dyeing services and knitting services, and the trading of cotton and yarns. Its major products include dyed yarns made of over 200 different types of cotton, cashmere, ramie, rayon, acrylic, polyester, silk, wool, nylon, linen and a mixture of the aforesaid products, and knitted sweaters including cardigans and pullovers.

Business Review - For the year ended December 31, 2012

2012 marked a challenging year for the textile industry. Under the continued fluctuations in the European Union (¡§EU¡¨) economy and uncertainties of quantitative easing policies in the United States (¡§US¡¨), consumption sentiment in the market revived at a slow pace. Faced with a series of unfavourable factors such as the significant weakening of the competitiveness of domestic cotton exports due to higher cotton prices in China's textile industry as compared with those in other parts of the world, each of the peers in the textile industry would be of no exception, but had to be exposed to similar difficulties. This situation remained to be relieved.

During the year, the Group closely kept abreast of the internal and external conditions of the market. The Directors made joint efforts to capitalize the synergies of the Group's vertical production, reduce production costs by stepping up efforts over cost control, raw materials procurement and expense cuts, thereby mitigating the impact of the changing market on the Group. The Group's overseas production base in Cambodia benefited from the preferential import tariff policies implemented by countries including countries in the EU and Japan, and was blessed with increasing competitive edge among its industry peers. The Group plans to expand its production base in Cambodia. To play an active role in supporting the world's green, eco-friendly and energy-saving awareness, we took the first initiative to build a green plant in Cambodia. The vision for building this plant is to maximize the benefits of energy conservation and carbon emission reduction with the use of natural resources. Also, we reinforced our green support through our membership in an international cotton organization ¡V Better Cotton Initiative (BCI). As one of the cotton yarn suppliers, widespread applauses were received from a number of major internationally-prestigious sweater brands. The Group's green factory will be well equipped with considerable quantities of Germany-imported computer-operated automatic weaving machines and equipment, so as to expand the capacity of the symbols of green eco-friendly clothing products. The expanded capacity is anticipated to be put into full operation in 2013, by then benefits will be brought to us.

Business Outlook - For the year ended December 31, 2012

We are confident that the demand for textiles across the globe will remain robust as products offered by the textile industry are daily necessities for the global population. Thanks to the concerted efforts of the Board of Directors and the cost advantages in Cambodia, the Group is definitely well-poised to reap higher profitability for shareholders. We would also like to take this opportunity to thank all management personnel for their efforts and contribution to the Group.

Source: Addchance (03344) Annual Results Announcement
Chairman Sung Kim Wa Issued Capital (shares) 441M
Par Value HKD 0.01 Market Capitalisation (HKD) 578M
 
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