Alltronics recorded HK$6,580,000 Net Profit in 2010 interim results and is optimistic with Biodiesel business development
[26 August 2010, Hong Kong]Alltronics Holdings Limited (“Alltronics” or “the Group”, HKEx stock code: 0833) is pleased to announce its interim results for the six months ended 30 June 2010.During the period under review, the turnover of the Group was HK$234,346,000 versus HK$211,901,000 in the same period last year, registering an increase of 10.6 %. The gross profit was HK$43,401,000 representing an increase of 32.1% compared with HK$32,845,000 in the same period of 2009. The gross profit margin increased from 15.5% to 18.5% in 2010.The net profit attributable to equity holders was HK$6,580,000 for the first half of 2010, representing an increase of 58.4% when compared with HK$4,153,000 recorded in the same period of 2009. Basic earnings per share was HK2.09 cents. The Board of Directors recommends the payment of an interim dividend of HK1.5 cents per ordinary share.
Mr. Lam Yin Kee, Chairman of Alltronics said, “The marketing conditions showed some improvements in the first half of 2010.The ameliorated performance was mainly due to the increase in gross margin for some of the Group’s electronic products as well as the improved performance of the biodiesel business.As a result of the increases in unit selling prices for certain major products and the more stabilized cost of raw materials, the Group’s overall performance has improved.”
During the period under review, the sales of the Group’s electronic products and components were HK$ 229.8 million, representing a 9.0% increase when comparing to the same period of 2009.The rise in turnover was mainly due to the continued recovery of the United States market and the rise in sales to the PRC and local customers.
For the biodiesel business, the total sales of the biodiesel products recorded HK$ 4.5 million with a surge of 319.3% when comparing to the same period in 2009.The Air Pollution Control (Motor Vehicle Fuel)(Amendment) Regulation 2009 has become effective from 1 July 2010, and therefore, management is optimistic with the prospects of biodiesel business and hope to advocate the development of biodiesel business in Hong Kong.With the global environmental and energy conservation issue, the Group believes there is a huge market potential for biodiesel business and is confident with its future development.
As at 30 June 2010, total cash and cash equivalents amounted to HK$46.0 million, and total bank and other borrowings of the Group amounted to HK$86.6 million. The gearing ratio was 17.5 %.
Looking forward, Mr. Lam said, “Although the performance of the Group has improved when compared to the results of the corresponding period in 2009, the Group will keep itself alert with uncertain global economic environment. Management expects the operating environment would remain tough due to the recent rises in raw material costs, commodities prices, and also the increasing labour costs in China.However, the Group will continue to look for cost reduction and cost effective measurements so as to put itself in a better position to meet all challenges and adverse factors. “
Mr. Lam continued,” The Group will streamline its organizational structure to meet all-round challenges. We will grasp every opportunity and continue to pursue investment opportunities so as to diversity its business and to bring a better return to our shareholders.”
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About Alltronics Alltronics Holdings Limited is mainly engaged in the research and development, manufacturing and trading of electronic products.The Group produces a wide range of electronic products such as irrigation controllers, carbon monoxide detectors and audio equipment etc.Alltronics is in hold of numerous scaled OEM / ODM clients all over the world, including those in United States, Germany, France and Asia etc.The Group has also diversified its businesses into biodiesel business since November 2008.
