Fountain Set profit margins touch 8.6% in Sept'11-Dec'12

Madam LI Lan, Chairman of Fountain Set, said, “To the Group’s Shareholders and the Board, FY2012 was no doubt a year of great change. Chinatex Corporation (“Chinatex”), based on Fountain Set’s 40 some years of development history during which the foundation for the Group’s operation and industry influence was established, invested approximately HK$511 million in Fountain Set (Holdings) Limited in June 2012 through the placement of new share and has since become the Group’s single largest shareholder. The injection of the new capital has effectively reduced the Group’s financial costs, thus enhancing our capital strength. This has strengthened the Group’s ability to tackle severe challenges and to implement internal adjustments and reforms.

“At the same time, Chinatex and the Fountain Set Group leveraged their individual strengths to provide the Group with active support in the supply of raw materials. The Group has also restructured the Board accordingly and I had the honor to be elected as the new Chairman of the Board. Under the leadership of the new Board, the management has made tremendous effort in the last half year of the past financial year by adopting a series of measures to reduce operating and management costs and to control losses with visible results. The Group’s overall performance has since stabilized and begun to show favorable improvements.”

Apart from continuously satisfying the needs of our existing customers, the Group will also carry on the development of new working relationships with brands and retailers in emerging markets such as Russia and Eastern Europe. The Group is also committed to enhancing our research and development, product quality as well as technical expertise. We will actively explore new materials and technologies in fabric production and continue developing higher added-value products for our customers. Fountain Set seeks to continue enhancing our operating efficiency including fuel and water consumption saving as well as cost structure while increasing speed-to-market at the same time.