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COMPUTIME GROUP LIMITED金寶通集團有限公 司 *
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 320) ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2016The board of directors (the "Board") of Computime Group Limited (the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 March 2016 (the "Year") together with the comparative figures for the year ended 31 March 2015, as follows:
CONSOLIDATED STATEMENT OF PROFIT OR Year ended 31 March 2016 | LOSS | ||
Notes | 2016 HK$'000 | 2015 HK$'000 | |
REVENUE | 3, 4 | 3,521,758 | 3,164,321 |
Cost of sales | (3,055,390) | (2,799,678) | |
Gross profit | 466,368 | 364,643 | |
Other income | 4 | 15,884 | 15,018 |
Selling and distribution expenses | (94,262) | (76,471) | |
Administrative expenses | (239,578) | (180,930) | |
Other operating expenses, net | (13,537) | (13,771) | |
Finance costs | 5 | (9,924) | (7,200) |
Share of profit of an associate | 769 | 1,893 | |
PROFIT BEFORE TAX | 6 | 125,720 | 103,182 |
Income tax expense | 7 | (28,012) | (26,878) |
PROFIT FOR THE YEAR | 97,708 | 76,304 |
Year ended 31 March 2016
Note | 2016 HK$'000 | 2015 HK$'000 |
ATTRIBUTABLE TO: Owners of the Company | 97,724 | 76,307 |
Non-controlling interests | (16) | (3) |
97,708 | 76,304 | |
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 9 | |
Basic | 11.7 HK cents | 9.2 HK cents |
Diluted | 11.6 HK cents | 9.1 HK cents |
Year ended 31 March 2016
2016 2015HK$'000 HK$'000
PROFIT FOR THE YEAR 97,708 76,304 OTHER COMPREHENSIVE INCOME/(EXPENSE)Other comprehensive income/(expense) to be reclassified to profit or loss in subsequent periods:
Cash flow hedges:
Effective portion of changes in fair value of
hedging instruments arising during the year | (10,413) | 8,502 |
the consolidated statement of profit or loss | 10,711 | (5,411) |
298 | 3,091 | |
Exchange differences on translation of foreign operations | (3,706) | (15,623) |
OTHER COMPREHENSIVE EXPENSE FOR THE YEAR, NET OF TAX | (3,408) | (12,532) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 94,300 | 63,772 |
Attributable to: Owners of the Company | 94,316 | 63,775 |
Non-controlling interests | (16) | (3) |
94,300 | 63,772 |
Reclassification adjustments for losses/(gains) included in
CONSOLIDATED STATEMENT OF FINANCIAL As at 31 March 2016 | POSITION | ||
Notes | 2016 HK$'000 | 2015 HK$'000 | |
NON-CURRENT ASSETS Property, plant and equipment | 159,388 | 124,338 | |
Goodwill | 36,420 | 36,420 | |
Club debenture | 705 | 705 | |
Intangible assets | 99,766 | 70,639 | |
Interest in an associate | 4,967 | 4,198 | |
Available-for-sale investment | 5,439 | 7,750 | |
Prepayments and deposits | 3,342 | 2,515 | |
Total non-current assets | 310,027 | 246,565 | |
CURRENT ASSETS Inventories | 609,045 | 635,318 | |
Trade receivables | 10 | 700,120 | 594,093 |
Prepayments, deposits and other receivables | 43,261 | 39,412 | |
Tax recoverable | 3,562 | 1,052 | |
Derivative financial instruments | 3,550 | 3,253 | |
Cash and cash equivalents | 544,427 | 639,654 | |
Total current assets | 1,903,965 | 1,912,782 | |
CURRENT LIABILITIES Trade and bills payables | 11 | 652,034 | 640,117 |
Other payables and accrued liabilities | 85,044 | 90,620 | |
Interest-bearing bank borrowings | 266,928 | 275,964 | |
Amounts due to non-controlling shareholders | 160 | 160 | |
Tax payable | 9,187 | 16,143 | |
Total current liabilities | 1,013,353 | 1,023,004 | |
NET CURRENT ASSETS | 890,612 | 889,778 | |
TOTAL ASSETS LESS CURRENT LIABILITIES (to be continued) | 1,200,639 | 1,136,343 |
As at 31 March 2016
2016 HK$'000 | 2015 HK$'000 | |
TOTAL ASSETS LESS CURRENT LIABILITIES (continued) | 1,200,639 | 1,136,343 |
NON-CURRENT LIABILITIES Deferred tax liabilities | 14,030 | 10,178 |
Net assets | 1,186,609 | 1,126,165 |
EQUITY Equity attributable to owners of the Company Issued capital | 83,393 | 83,000 |
Reserves | 1,102,426 | 1,042,359 |
1,185,819 | 1,125,359 | |
Non-controlling interests | 790 | 806 |
Total equity | 1,186,609 | 1,126,165 |
The Company was incorporated as an exempted company with limited liability in the Cayman Islands on 23 June 2006 under the Companies Law, Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands.
The registered address of the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and the principal place of business is located at 9th Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong.
During the year, the Group is principally engaged in the research and development, design, manufacture and trading of electronic control products.
-
BASIS OF PREPARATION
These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for derivative financial instruments which have been measured at fair value. These financial statements are presented in Hong Kong dollars ("HK$") and all values are rounded to the nearest thousand except when otherwise indicated.
Basis of consolidationThe consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31 March 2016. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee).
When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
the contractual arrangement with the other vote holders of the investee;
rights arising from other contractual arrangements; and
the Group's voting rights and potential voting rights.
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described in the accounting policy for subsidiaries above. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it derecognises (i) the assets (including goodwill) and liabilities of the subsidiary, (ii) the carrying amount of any non-controlling interest and (iii) the cumulative translation differences recorded in equity; and recognises (i) the fair value of the consideration received,
(ii) the fair value of any investment retained and (iii) any resulting surplus or deficit in profit or loss. The Group's share of components previously recognised in other comprehensive income is reclassified to profit or loss or retained profits, as appropriate, on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.
- CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
The Group has adopted the following revised standards for the first time for the current year's financial statements.
Amendments to HKAS 19 Defined Benefit Plans: Employee Contributions Annual Improvements to HKFRSs 2010-2012 Cycle
Annual Improvements to HKFRSs 2011-2013 Cycle
The adoption of the above revised standards has had no significant financial effect on these financial statements.
In addition, the Company has adopted the amendments to the Rules Governing the Listing of Securities (the "Listing Rules") issued by The Hong Kong Stock Exchange Limited (the "Stock Exchange") relating to the disclosure of financial information with reference to the Hong Kong Companies Ordinance (Cap. 622) during the current financial year. The main impact to the financial statements is on the presentation and disclosure of certain information in the financial statements.
-
OPERATING SEGMENT INFORMATION
For management purposes, the Group is organised into business units based on their products and services and has three reportable operating segments as follows:
the building and home controls segment, which is engaged in the research and development, design, manufacture, trading and distribution of building and home control products;
the appliance controls segment, which is engaged in the research and development, design, manufacture, trading and distribution of appliance control products; and
the commercial and industrial controls segment, which is engaged in the research and development, design, manufacture, trading and distribution of commercial and industrial control products.
Management monitors the results of its operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit, which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group's profit before tax except that other income, finance costs, share of profit of an associate as well as corporate and unallocated expenses are excluded from such measurement.
Segment assets exclude property, plant and equipment, goodwill, club debenture, cash and cash equivalents, available-for-sale investment and corporate and other unallocated assets as these assets are managed on a group basis.
Segment liabilities exclude interest-bearing bank borrowings, trade and bills payables, deferred tax liabilities and corporate and other unallocated liabilities as these liabilities are managed on a group basis.
Inter-segment revenue and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.
Building and home controls Appliance controls Commercial and industrial controls Total 2016 2015 2016 2015 2016 2015 2016 2015Segment results 152,003 81,836 23,532 39,325 34,011 36,577 209,546 157,738Segment revenue:
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
Sales to external customers
1,283,095
942,243
1,667,734
1,608,912
570,929
613,166
3,521,758
3,164,321
Bank interest income 7,482 6,528
Other income (excluding bank interest
income) 2,390 8,490
Corporate and other unallocated
expenses (84,543) (64,267)
Finance costs (9,924) (7,200)
Share of profit of an associate 769 1,893 - - - - 769 1,893
Profit before tax 125,720 103,182
Income tax expense (28,012) (26,878)
Profit for the year 97,708 76,304
Assets and liabilitiesSegment assets 791,067 577,970 334,447 533,855 281,842 153,258 1,407,356 1,265,083
Interest in an associate 4,967 4,198 - - - - 4,967 4,198 Corporate and other unallocated assets 801,669 890,066
Total assets 2,213,992 2,159,347
Segment liabilities 16,662 14,958 19,505 18,287 608 791 36,775 34,036
Corporate and other unallocated
liabilities 990,608 999,146
Total liabilities 1,027,383 1,033,182
Other segment information:Capital expenditure* 151,063 108,529
Depreciation 35,706 37,551
Amortisation of deferred expenditure 34,168 22,696 7,406 6,461 5,866 3,042 47,440 32,199
Impairment of trade receivables 654 11,271 4,027 118 - - 4,681 11,389 Reversal of impairment of
trade receivables (155) - - - - - (155) - Write-down of inventories to net
realisable value
9,105 4,837
14,243 9,792
4,609 3,576
27,957 18,205
Write-back of trade and other payables
- (4,654)
- (9,421)
- (3,442)
- (17,517)
* Capital expenditure consists of additions to property, plant and equipment and intangible assets.
Geographical information(a)
Revenue from external customers
2016
2015
HK$'000
HK$'000
The America 1,035,769
869,699
Europe 1,812,207
1,509,874
Asia 673,782
784,748
3,521,758
3,164,321
The revenue information above is based on the locations of the customers.
(b)
Non-current assets
2016
HK$'000
2015
HK$'000
The America 5,563
6,037
Europe 2,355
2,153
Asia 295,965
229,920
303,883
238,110
The non-current asset information above is based on the locations of assets and excludes club debenture and available-for-sale investment.
Information about major customersApproximately 27.9% of the Group's revenue was derived from sales to a major customer in the appliance controls segment for the year ended 31 March 2016.
Approximately 27.2% and 10.1% of the Group's revenue was derived from sales to two major customers in the appliance controls and commercial and industrial controls segments, respectively, for the year ended 31 March 2015.
- REVENUE AND OTHER INCOME
Revenue represents the net invoiced value of goods sold, after allowances for returns and trade discounts.
An analysis of other income is as follows: | 2016 | 2015 |
HK$'000 | HK$'000 | |
Bank interest income | 7,482 | 6,528 |
Other interest income Marketing and management service fee income Engineering fee income | - 6,506 - | 213 - 2,310 |
Handling and testing fee income | - | 296 |
Sale of materials | - | 5,240 |
Sundry income | 1,896 | 431 |
15,884 | 15,018 |
5. | FINANCE COSTS An analysis of finance costs is as follows: | |
2016 HK$'000 | 2015 HK$'000 | |
Interest on bank loans | 9,924 | 7,200 |
6. | PROFIT BEFORE TAX | |
Profit before tax is arrived at after charging/(crediting): | ||
2016 HK$'000 | 2015 HK$'000 | |
Cost of inventories sold* | 3,027,433 | 2,781,473 |
Depreciation Research and development costs: Amortisation of deferred expenditure^ | 35,706 47,440 | 37,551 32,199 |
Current year expenditure | 8,631 | 9,435 |
56,071 | 41,634 | |
Write-down of inventories to net realisable value** | 27,957 | 18,205 |
Write-back of trade and other payables*** | - | (17,517) |
Foreign exchange losses, net# | 3,876 | 3,177 |
Gain on disposal of items of property, plant and equipment, net# | (129) | (776) |
Impairment of trade receivables# | 4,681 | 11,389 |
Reversal of impairment of trade receivables# | (155) | - |
Impairment of an available-for-sale investment# | 5,082 | - |
* Employee benefit expense of HK$291,880,000 (2015: HK$248,794,000) is included in "Cost of inventories sold" above.
** Write-down of inventories to net realisable value is included in "Cost of sales" on the face of the consolidated statement of profit or loss.
*** Write-back of trade and other payables of HK$11,725,000 and HK$3,237,000 were included in "Cost of sales" and "Selling and distribution expenses", respectively, on the face of the consolidated statement of profit or loss for the year ended 31 March 2015.
^ The amortisation of deferred expenditure for the year is included in "Administrative expenses" on the face of the consolidated statement of profit or loss.
# These items are included in "Other operating expenses, net" on the face of the consolidated statement of profit or loss.
At 31 March 2016, the Group had no forfeited contribution available to reduce its contributions to the pension schemes in future years (2015: Nil).
7. INCOME TAX EXPENSEHong Kong profits tax has been provided at the rate of 16.5% (2015: 16.5%) on the estimated assessable profits arising in Hong Kong during the year. Taxes on profits assessable elsewhere have been calculated at the rates of tax prevailing in the jurisdictions in which the Group entities operate.
2016 2015HK$'000 HK$'000
Current - Hong Kong:
Charge for the year | 16,068 | 14,433 |
Underprovision in prior years | 371 | 23 |
Current - Mainland China and other countries:
Charge for the year | 7,721 | 9,059 |
Underprovision in prior years | - | 750 |
Deferred | 3,852 | 2,613 |
Total tax charge for the year | 28,012 | 26,878 |
8. | DIVIDENDS | |
Dividend paid during the year | ||
2016 HK$'000 | 2015 HK$'000 | |
Final dividend in respect of the financial year ended 31 March 2015 - HK$0.045 per ordinary share (2015: final dividend of HK$0.020 per ordinary share, in respect of the financial year ended 31 March 2014) | 37,527 | 16,600 |
Proposed final dividend | ||
2016 HK$'000 | 2015 HK$'000 | |
Final - HK$0.058 (2015: HK$0.045) per ordinary share | 48,368 | 37,415 |
The proposed final dividend for the year is subject to the approval of the Company's shareholders at the forthcoming annual general meeting.
9. EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANYThe calculation of basic earnings per share is based on the profit for the year attributable to owners of the Company of HK$97,724,000 (2015: HK$76,307,000) and the weighted average number of ordinary shares of 833,093,000 (2015: 830,000,000) in issue during the year.
The calculation of the diluted earnings per share amounts is based on the profit for the year attributable to owners of the Company of HK$97,724,000 (2015: HK$76,307,000). The weighted average number of ordinary shares used in the calculation of 843,642,000 (2015: 835,287,000) is the number of ordinary shares in issue during the year, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed exercise of all dilutive potential ordinary shares into ordinary shares.
9. EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (Continued)A reconciliation between the weighted average number of shares used in calculating the basic and diluted earnings per share is as follows:
Weighted average number of ordinary shares used in | 2016 | 2015 |
calculating the basic earnings per share | 833,093,000 | 830,000,000 |
Weighted average number of ordinary shares assumed to have been issued at nil consideration on deemed exercise
calculating the diluted earnings per share | 843,642,000 | 835,287,000 |
10. | TRADE RECEIVABLES | |
2016 HK$'000 | 2015 HK$'000 | |
Trade receivables | 780,448 | 671,877 |
Impairment | (80,328) | (77,784) |
700,120 | 594,093 |
of all dilutive options in issue during the year 10,549,000 5,287,000 Weighted average number of ordinary shares used in
The Group's trading terms with its customers are mainly on credit. The credit period granted to customers generally ranges from one to three months. The Group maintains strict credit control over its customers and outstanding receivables to minimise credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group's trade receivables relate to a large number of diversified customers, there is no significant concentration of credit risk. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. Trade receivables are non-interest-bearing.
An ageing analysis of the trade receivables as at the end of the reporting period, based on the payment due date and net of provisions, is as follows:
2016 HK$'000 | 2015 HK$'000 | |
Current and due within 1 month | 636,907 | 505,258 |
1 to 2 months | 16,946 | 39,987 |
2 to 3 months | 13,891 | 13,416 |
Over 3 months | 32,376 | 35,432 |
700,120 | 594,093 |
Included in the Group's provision for impairment of trade receivables is a provision for individually impaired trade receivables of HK$80,328,000 (2015: HK$77,784,000) with a carrying amount before provision of HK$90,655,000 (2015: HK$91,448,000). The individually impaired trade receivables relate to balances that were in dispute, or in the status of insolvency and reorganisation proceedings for Fagor Electrodomesticos Sociedad Cooperativa, FagorBrandt SAS, and Fagor Mastercook S.A. (collectively the "Fagor Group") as detailed below.