Monday, November 30, 2020
 
Columnist
Martin Hennecke
 
MASTERCRAFT I
HKEx Stock Code : 08146 
 
Corporate Profile
The Group is principally engaged in the design and development of portable lighting products, shades and furniture sets and other home accessories.

Business Review - For the year ended December 31, 2012

The Group is principally engaged in the design and sale of portable lighting, shades and furniture set and other home accessory products, the manufacture of which is outsourced to independent contract manufacturers in the PRC. North America is the principal market of the Group and the Group sold products mainly to mass market retailers, home furnishing stores, furniture stores and specialty stores. Mass market retailers remain as the Group's major customer category during the year ended 31 December 2012, which contributed to approximately 79.8% of the Group's total revenue.

The Group's revenue from sale of portable lighting, shades and furniture set and other home accessory products for the year ended 31 December 2012 was approximately HK$ 231.7 million, HK$80.3 million and HK$19.3 million (2011: HK$173.8 million, HK$68.6 million and HK$22.1 million) respectively. Portable lighting products remained as the Group's significant revenue stream. During the year, portable lighting product and shades contributed to approximately 69.9% and 24.2% (2011: 65.7% and 25.9%) of the Group's revenue, respectively. The Directors and management are continuously monitoring the product margin in order to enhance the shareholders' interest. The gross profit margin of portable lighting products, shades and furniture set and other home accessory products increased from 15.9% to 18.8%, 21.5% to 24.5% and 25.7% to 26.7%, respectively from the year ended 31 December 2011 to the corresponding periods in 2012.

Business Outlook - For the year ended December 31, 2012

The Directors believe that upon the successful listing of the shares of the Company on the GEM board of the Stock Exchange by way of placing on 20 July 2012 could enhance the Group's profile and the net proceeds from the placing will strengthen the Group's financial position and enable the Group to implement its business plan.

Product design and development plays a crucial role in the Group's business. The product development team creates and transforms ideas into products in order to meet customers' needs and to expand the product varieties offered to both existing and potential customers. To strengthen and expand the design and development functions, the Group has leased premises in Dongguan, Guangdong Province in the PRC to set up the new product development centre, which the Directors believe to be one of the key drivers for the Group's future growth.

The Group targets further expansion in North America markets not only in portable lighting market but also the furniture market, where the Directors see the greatest potential growth in demand for the Group's products in near future. The Group intends to continue outsourcing the entire production of its existing and future products in order to remain competitive.

Source: Mastercraft Int'l (08146) Annual Results Announcement
Chairman N/A Issued Capital (shares) 480M
Par Value HKD 0.01 Market Capitalisation (HKD) 163M
 
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