Monday, November 30, 2020
 
Columnist
Martin Hennecke
 
UKF
HKEx Stock Code : 08168 
 
Corporate Profile
The Group is principally engaged in the trading of fur skins of foxes and minks.

Business Review - For the year ended March 31, 2013

Beijing recorded the coldest December for 26 years in 2012. The early start of the cold weather period gave the Chinese fur retailers a better-than-expected early selling period. In addition, the late beginning of the Chinese New Year holiday in mid-February extended the Chinese retailers' selling season to the end of March.

The steady economic growth and smooth political transition following the transition of the 18th National Congress meeting boosted the demand of luxury items including fur garment. The demand for raw skins in December 2012 and February 2013 were greater than ever before in China. In addition, the entry of newly established fur merchants who witnessed the success of their friends or relatives in the fur trade and followed suit also demonstrated the optimistic sentiment of the industry.

Meanwhile, the fur retailers in Russia also benefited from the extremely cold weather and the growing domestic consumption partly stimulated by the high oil and natural gas export prices. This extra boost in demand and the tradition of wearing fur garments and fur hats together attributed to the highly satisfactory sales during the fur retail season in Russia.

Further, the adoption of quantitative easing policy by central banks in the USA, European Union and Japan, which was then followed by other important countries like China and Russia, resulted in an increased money supply and in turn stimulated spending in the private sector, which further boosted demand and the sales for luxury items including fur garment.

The abovementioned circumstances promoted the huge success of the December 2012 auctions in Copenhagen and Helsinki. The auction price of majority of mink skins in Copenhagen increased by an average of 13- 17% whereas the auction price of Blue Fox auctioned by Saga Fur Sales in Helsinki also surged by 15%. In February 2013, there was a further 10% increase in mink skin price in the Kopenhagen Fur auction. Therefore the Group enjoyed a much increased profit compared with the same period last year.

The details of important events affecting the Group since 31 March 2013 are set out in Note 14 to the consolidated financial statements in this annual results announcement.

Business Outlook - For the year ended March 31, 2013

The Board will constantly evaluate the Group's business objective and will change or modify plans against the changing market conditions to ascertain the business growth of the Group.

Source: UKF Holdings (08168) Annual Results Announcement
Chairman WONG Chun Chau Issued Capital (shares) 1,646M
Par Value HKD 0.01 Market Capitalisation (HKD) 667M
 
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