This dragon 省级龙头企业 (exporting to many countries) will not fall ....... soon and sooner will break 20 cents ........ and march towards 30 cents ..... anyway, just agak agak
Review of HBGLOB Comprehensive Income Our revenue increased by RMB22.5 million or approximately 15.5% from RMB145.2 million in financial year ended 31 December 2016 (“FYE2016”) to RMB167.7 million in financial year ended 31 December 2017 (“FYE2017”). The increase was mainly due to increase in sales of Frozen Vegetable products.
The Group has improved its Gross Profit (“GP”) margin from 10.1% in FYE2016 to 31.6% in FYE2017. This has marked an improvement since the Group ceased the duck farming segment in July 2016, focussing its resources on profitable food processing segment as compared to the duck farming which was running at a gross loss in prior year.
Other operating income increased by RMB6.9 million from RMB6.7 million in FYE2016 to RMB13.6 million in FYE2017. Included in other operating income for FYE2017 were reversal of impairment on property, plant and equipment of RMB8.3 million, rental income of RMB1.9 million, and gain on disposal of property, plant and equipment of RMB3.0 million. Whereas in FYE2016, other operating income included reversal of impairment on property, plant and equipment of RMB1.3 million, exchange gain of RMB0.9 million, rental income of RMB0.5 million and other revenues of RMB0.4 million.
Selling and distribution expenses decreased by RMB0.6 million in FYE2017 as a result of lower transportation and freight charges, travelling expenses and marketing fees incurred.
General and administration expenses had increased by RMB3.7 million in FYE2017 mainly due to general inflation.
Other operating expenses increased by RMB3.1 million in FYE2017 were mainly due to impairment loss on certain property, plant and equipment (“PPE”) for RMB4.4 million, loss on disposal of PPE for RMB1.5 million and PPE written off for an amount of RMB0.4 million.
The significant increase in net profit before taxation of RMB22.5 million in FYE2017 is the result of the above explanations and favourable gross profits achieved during the financial year.
Review of Balance Sheet There were minor additions to property, plant and equipment and construction in progress for the current year. These were mainly for the purposes of improving production facilities.
The increase in inventories of RMB3.4 million from FYE2016 was mainly to meet the increased demand of our products for coming month. Trade receivables increased by RMB38.9 million from RMB20.7 million in FYE2016 to RMB59.6 million in FYE2017 was mainly due to increased local demand of our products during the quarter under review as compared to preceding year corresponding quarter. Trade and other payables increased by RMB23.7 was mainly due to the increase in purchases in the current quarter to meet the increased demand of our products for coming month.
Review of Cash Flow Statement Net cash generated in operating activities increased in FYE2017 by approximately RMB17.6 million was mainly due to the improvement of GP margin of our products and the extended repayment period to trade and other payables but partly offset by the credit term given to our local customers.
Net cash generated in investing activities increased to RMB6.7 million in FYE2017 was due to the disposal of old plants. Also there were additional production facilities acquired to meet the growing volume in our frozen vegetable products.
The Group recorded revenue of RMB70.7million in the current quarter, increased by approximately RMB30.8 million or 77.2% from RMB39.9 million in the immediate preceding quarter due to the improved local demand for our frozen vegetable products that ultimately exported. The increase in profit before taxation and after taxation is mainly due to the better GP margin achieved and the reversal of impairment on property, plant and equipment for the current quarter.
Prospects for FYE 2018 HBGLOB had delivered a sterling performance in the current financial year ever since it embarked on its own self-rescue plan without any reliance on external parties when it undertook drastic measures in cessation of the duck farming segment since July 2016. The Group had met the requirements of achieving 2 consecutive profits and poised to continue to perform well barring any unforeseen circumstances in the challenging global economy as the Group continue to embark on capturing the local market and continue to work closely with its channel partners.
The effective tax rate of our Group for the current quarter and financial year-to-date was Nil as compared to the applicable tax rate of 25.0% due to permanent difference in the tax treatment of expenses that are not deductible under China tax.
yesterday night only studied the reports and any other latest info**(before only see their website), my conclusion is to cut losses now, that's all (cant disclose further - will disclose maybe after result if guess right). Maybe I am wrong but all depend on operator and market sentiment.
HBglob boss kept on reassuring investors the company will perform better. See you guys trust him or not only. IMO, coming quarter must be at least RM1m net profit (first Q usually lowest earnings).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
UnicornP
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Posted by UnicornP > 2018-05-18 10:09 | Report Abuse
155 support support ~!