FSHL Garments production & sales annual revenue up

19 Dec '07

3 min read

Fountain Set (Holdings) Limited, a global leader in the manufacturing of knitted fabrics, announced its audited consolidated final results for the year ended 31st August, 2007.

he result of the Group for the year under review was approximately HK$167,481,000. In the previous financial year, the Group has completed the disposal of certain non-core property interests in Hong Kong during the first half of the financial year.

The disposal of these property interests resulted in a net gain (after tax) of approximately HK$128,796,000 which has been adjusted to take into account the effect of the adoption of new accounting standards and the change of accounting policies during the year under review.

If the net gain on disposal of property interests is excluded, the profit attributable to shareholders for the financial year of 2007 decreased by 5.9% and profit margin was similar to last year. Otherwise, profit attributable to shareholders decreased by 45.4% if the net gain on disposal of property interests in previous year is included.

Several adverse effects on the business environment for the manufacturing industry in the PRC affected the Group's financial results of the year under review. The upsurge in the international fuel and energy prices throughout the year under review increased the cost of certain raw materials and electricity generation.

Costs increase in the PRC, including the increase in minimum wage, the appreciation of Renminbi against the US dollars and the decrease in VAT rebate, have created pressure on the profit margin of the Group.

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