FUJIKON INDUSTRIAL HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
ANNUAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31 MARCH 2019
FINANCIAL HIGHLIGHTS
- Revenue: HK$1,411.8 million, up 15.1% (2018: HK$1,226.1 million)
- Gross profit margin: 18.3%, down 1.9 points (2018: 20.2%)
- Profit attributable to equity holders of the Company: HK$40.5 million, up 32.7% (2018: HK$30.5 million)
- Basic earnings per share: HK9.6 cents (2018: HK7.3 cents)
- Final dividend (per share): HK5.0 cents (2018: HK5.0 cents)
The board of directors (the "Board") of Fujikon Industrial Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries ("Fujikon" or the "Group") for the year ended 31 March 2019.
The annual results have been reviewed by the audit committee of the Company.
* for identification purpose only
- 1 -
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2019
2019 | 2018 | ||
Note | HK$'000 | HK$'000 | |
Revenue | 4 | 1,411,795 | 1,226,121 |
Cost of sales | (1,154,092) | (978,377) | |
───────── | ───────── | ||
Gross profit | 257,703 | 247,744 | |
Other gains/(losses) - net | 8,046 | (15,973) | |
Distribution and selling expenses | (14,293) | (12,903) | |
General and administrative expenses | (166,569) | (154,662) | |
(Provision)/reversal of provision for impairment of trade | |||
receivables | (871) | 2,105 | |
───────── | ───────── | ||
Operating profit | 5 | 84,016 | 66,311 |
Finance income - net | 4,572 | 3,278 | |
───────── | ───────── | ||
Profit before income tax | 88,588 | 69,589 | |
Income tax expenses | 6 | (19,620) | (15,310) |
───────── | ───────── | ||
Profit for the year | 68,968 | 54,279 | |
---------------- | ---------------- | ||
Other comprehensive income: | |||
Items that have been reclassified or may be subsequently | |||
reclassified to profit or loss: | |||
- Currency translation differences | (26,683) | 43,244 | |
- Fair value gains on financial assets at fair value through | |||
other comprehensive income | 51 | - | |
- Fair value losses on available-for-sale financial assets | - | (25) | |
- Release of investment reserve upon disposal of | |||
available-for-sale financial assets | - | 20 | |
───────── | ───────── | ||
Other comprehensive income for the year, net of tax | (26,632) | 43,239 | |
---------------- | ---------------- | ||
Total comprehensive income for the year | 42,336 | 97,518 | |
═════════ | ═════════ | ||
Profit attributable to: | |||
Equity holders of the Company | 40,490 | 30,518 | |
Non-controlling interests | 28,478 | 23,761 | |
───────── | ───────── | ||
68,968 | 54,279 | ||
═════════ | ═════════ | ||
Total comprehensive income attributable to: | |||
Equity holders of the Company | 15,795 | 70,701 | |
Non-controlling interests | 26,541 | 26,817 | |
───────── | ───────── | ||
42,336 | 97,518 | ||
═════════ | ═════════ | ||
Earnings per share for profit attributable to the equity | |||
holders of the Company for the year: | |||
- Basic (HK cents per share) | 8 | 9.6 | 7.3 |
═════════ | ═════════ | ||
- Diluted (HK cents per share) | 8 | 9.5 | 7.2 |
═════════ | ═════════ |
- 2 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2019
2019 | 2018 | |||
Note | HK$'000 | HK$'000 | ||
Non-current assets | ||||
Property, plant and equipment | 142,442 | 137,898 | ||
Investment property | 1,400 | 1,200 | ||
Land use rights | 3,879 | 4,316 | ||
Non-current deposits and other assets | 4,812 | 2,758 | ||
Available-for-sale financial assets | - | 3,928 | ||
Financial assets at fair value through other | ||||
comprehensive income | 3,979 | - | ||
Deferred income tax assets | 6,644 | 5,836 | ||
───────── | ───────── | |||
Total non-current assets | 163,156 | 155,936 | ||
---------------- | ---------------- | |||
Current assets | ||||
Inventories | 313,876 | 237,111 | ||
Trade receivables | 9 | 258,226 | 228,332 | |
Other receivables | 39,149 | 30,005 | ||
Financial assets at fair value through profit or loss | 2,109 | 2,145 | ||
Current income tax recoverable | 1,003 | 61 | ||
Cash and cash equivalents | 263,137 | 408,633 | ||
───────── | ───────── | |||
Total current assets | 877,500 | 906,287 | ||
---------------- | ---------------- | |||
Current liabilities | ||||
Trade payables | 10 | 173,121 | 205,668 | |
Contract liabilities, accruals and other payables | 125,690 | 100,078 | ||
Current income tax liabilities | 4,805 | 10,044 | ||
───────── | ───────── | |||
Total current liabilities | 303,616 | 315,790 | ||
---------------- | ---------------- | |||
Net current assets | 573,884 | 590,497 | ||
---------------- | ---------------- | |||
Total assets less current liabilities | 737,040 | 746,433 | ||
---------------- | ---------------- | |||
Non-current liabilities | ||||
Deferred income tax liabilities | 2,184 | 1,491 | ||
---------------- | ---------------- | |||
Net assets | 734,856 | 744,942 | ||
═════════ | ═════════ | |||
Equity | ||||
Capital and reserves attributable to the Company's | ||||
equity holders | ||||
Share capital | 42,584 | 42,107 | ||
Other reserves | 171,771 | 191,739 | ||
Retained earnings | ||||
- | Proposed dividends | 21,292 | 21,053 | |
- | Others | 437,446 | 435,221 | |
───────── | ───────── | |||
673,093 | 690,120 | |||
Non-controlling interests | 61,763 | 54,822 | ||
───────── | ───────── | |||
Total equity | 734,856 | 744,942 | ||
═════════ | ═════════ |
- 3 -
NOTES
-
Basis of preparation
The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS") and disclosure requirements of the Hong Kong Companies Ordinance Cap. 622. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment property, financial assets at fair value through other comprehensive income, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, which are carried at fair value. - Accounting policies
- New and amended standards, improvement and interpretations to standards (collectively the "Amendments") adopted by the Group
The Group has applied the following Amendments for the first time for its financial year commencing on 1 April 2018:
• | HKFRSs (Amendments) | Annual improvements to HKFRSs 2014-2016 cycle |
• | HKFRS 2 (Amendments) | Classification and measurement of share-based payment |
transactions | ||
• | HKFRS 4 (Amendments) | Applying HKFRS 9 Financial instruments with HKFRS 4 |
Insurance contracts | ||
• | HKFRS 9 | Financial instruments |
• | HKFRS 15 | Revenue from contracts with customers |
• | HKFRS 15 (Amendments) | Clarifications to HKFRS 15 |
• | HKAS 40 (Amendments) | Transfer to investment property |
• HK (IFRIC) - Int 22 | Foreign currency transactions and advance consideration |
The impacts of the adoption of HKFRS 9 Financial instruments ("HKFRS 9") and HKFRS 15 Revenue from contracts with customers ("HKFRS 15") and the new accounting policies are disclosed in Note 3 below. Reclassification of impairment losses on financial assets is also required as a result of consequential changes made to HKAS 1 Presentation of financial statements. Impairment losses on financial assets that were previously classified as administrative expenses are now presented separately in the consolidated statement of comprehensive income. The adoption of other amended standards and interpretations to standards did not have a material impact on the Group's accounting policies and did not require retrospective adjustments.
- 4 -
2. Accounting policies (Continued)
- New and amended standards and interpretations to standards that have been issued but are not effective
A number of new and amended standards and interpretations to standards are effective for the Group's annual periods beginning on or after 1 April 2019 and have not been early adopted in preparing these consolidated financial statements:
• | HKFRSs (Amendments) | Annual improvements to HKFRSs 2015-2017 cycle1 |
• | HKFRS 3 (Amendments) | Definition of a business2 |
• | HKFRS 9 (Amendments) | Prepayment features with negative compensation1 |
• HKFRS 10 and HKAS 28 | Sale or contribution of assets between an investor and its | |
(Amendments) | associate or joint venture4 | |
• | HKFRS 16 | Leases1 |
• | HKFRS 17 | Insurance contract3 |
• HKAS 1 and HKAS 8 | Definition of material2 | |
(Amendments) | ||
• | HKAS 19 (Amendments) | Plan amendments, curtailment or settlement1 |
• | HKAS 28 (Amendments) | Long-term interests in associates and joint ventures1 |
• HK (IFRIC) - Int 23 | Uncertainty over income tax treatments1 | |
• Conceptual framework for financial | Revised conceptual framework for financial reporting2 | |
reporting 2018 |
- Effective for financial years beginning on or after 1 January 2019
- Effective for financial years beginning on or after 1 January 2020
- Effective for financial years beginning on or after 1 January 2021
- No mandatory effective date yet determined
The Group is in the process of making an assessment of the potential impact of these new and amended standards and interpretations to standards in the period of initial application. So far the Group has identified some aspects of certain HKFRS 16 Leases ("HKFRS 16") which may have a significant impact on the consolidated financial statements. Further details of the expected impacts are discussed below:
HKFRS 16, Leases
Nature of change
HKFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the consolidated statement of financial position by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases.
The accounting for lessors will not significantly change.
Impact
HKFRS 16 will primarily affect the accounting for the Group's operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of approximately HK$20.4 million in respect of certain properties. Upon the initial adoption of the standard, the opening balances of lease liabilities and the corresponding right-of-use assets will be recognised, after taking into account the effects of discounting, as at 1 April 2019. The application of the new accounting model is expected to lead to an increase in both assets and liabilities and to impact on the timing of the expense recognition in the profit or loss over the period of the lease.
The Group has not yet fully assessed the adjustments, if any, that are necessary for example because of the change in the definition of the lease term and the different treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may affect the Group's profit or loss and classification of cash flows going forward.
- 5 -
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Fujikon Industrial Holdings Ltd. published this content on 19 June 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2019 04:33:02 UTC
