管理层讨论及分析20640.pdfVIP

Management Discussion and Analysis RESULTS OF OPERATIONS In 2004, the Group reported turnover of HK$25 million and net loss of HK$12.7 million or loss per share of HK0.75 cents as compared 25,000,00012,700,000 to net profit of HK$27.4 million or earnings per share of HK1.61 0.75 cents in 2003. Principal factors affecting these changes, which were 27,400,000 discussed further in the followings, were decreased sales and 1.61 impairment loss from certain production assets and intangible assets as a result of continued deterioration in the Group’s income, which was particularly marked in the third to fourth quarters 2004. Turnover was HK$25 million in 2004, a decrease of HK$73.5 million 25,000,000 or 75% as compared to HK$98.5 million in 2003, primarily due to 9 8 , 5 0 0 , 0 0 0 the decrease in sales resulted from weak demand on our products 73,500,00075% and increased competition. The gross profit margin in 2004 decreased to 44.4% from 56.4% in 2003. 56.4%44.4% In 2004, the Group received rental income of HK$1.0 million in respect of its investment properties at Ma Wei District, Fuzhou, Fujian Province, the PRC (2003: nil). The rental income accounted 1,000,000 for 3.8% of the Group’s total revenue. Portion of the premises in 3.8% the Group’s production facilities not utilised was leased to a third party commencing January 2004 and was classified into investment