RNS Number : 8834X
PAQ International Holdings Limited
30 June 2008
30 June 2008
PAQ INTERNATIONAL HOLDINGS LIMITED
Final Results for the year ended 31 December 2007
Chairman's Statement
I am pleased to report on the results of PAQ International Holdings Limited (the "Company" or "PAQ") and its subsidiaries (collectively
referred to as the "Group") for the financial year ended 31 December 2007.
Financial highlights (Based on the proforma unaudited consolidated accounts)
* Revenue growth of approximately 35.2% from approximately HK$49.8 million in 2006 to approximately HK$67.3 million in 2007
* Profit after tax up approximately 57.9% from approximately HK$7.7 million in 2006 to approximately HK$12.2 million in 2007
* Acquisition by PAQ Manufacturing Limited of the remaining 49% minority interest in Plato Leatherware Co., Ltd. ("Plato"). PAQ
Manufacturing Limited previously owned a 51% stake in Plato.
* Continued international expansion and growth of branded products
* Launch of PAQ retailing businesses in China
Note to readers of the Accounts
PAQ was incorporated on 23 November 2007 as a holding company and for the purposes of Admission to AIM on 19 February 2008. On 18
January 2008 PAQ completed a reorganization of its companies that effectively consolidated PAQ Manufacturing and its subsidiaries to form
the Group that was admitted to AIM. These events are post balance sheet events for the purposes of the accounts as at 31 December 2007.
Therefore, as at 31 December 2007, PAQ was simply a holding company with no subsidiaries. Further details of the reorganization can be found
in the AIM admission document on www.paq-intl.com.
For the purposes of clarity we have produced the following financial statements to assist shareholders in understanding of the Group:
* Unaudited proforma consolidated financial statements as at 31 December 2007.
* Audited financial statements for PAQ.
* Audited consolidated financial statements for PAQ Manufacturing.
* Audited financial statements for Plato.
PAQ will report its first audited consolidated financial statements for the current financial year being 31 December 2008 in which
period it undertook its reorganization and Admission to AIM.
Achievements
The Company's admission to AIM has given us the opportunity to access international capital markets whilst also enhancing our growing
reputation in the markets where we operate. This is particularly true in Asia and Europe, as we have begun laying the foundations for
continued and profitable growth in coming years. I believe our financial results speak to the success of our integrated strategy.
We continue to enhance the PAQ brand leveraging on our historical manufacturing strengths in cases and bags for electronics products and
accessories. We have also continued to develop our retail concept by targeting key Chinese metropolitan centres. The recent acquisition of
the minority interests in Plato has added momentum to our continued growth in the Greater China Region and has enabled us to further
integrate our international customer base and introduce them to our brand.
We are also continuing to develop our expertise in producing high quality, reliable and innovative products. In the coming years we
intend to seek a sales and distribution network throughout the Greater China region to meet the needs of increasingly affluent Chinese
consumers who are now demanding higher end accessories. We are confident in the Group's long-term growth potential both domestically and
internationally, and the anticipated launch of a new product group towards the end of 2008.
Future growth
I am pleased to announce that we are in the course of expanding our retail chain in China very shortly.
We continue to explore opportunities to further develop our brand and assist foreign licensors to introduce their own specialty brands
to China. We are currently in discussions with two sports related franchises that will increase our market opportunities and improving the
standing of our core brand.
Since its incorporation, we had worked with Plato to license our branded concepts and also, in part, to source manufacturing. Since our
admission to AIM, our respective management teams decided it would be to our mutual benefit to increase the depth of our relationship. The
strength of our relationship and the optimism shared by both parties is reflected by the request of the owners of the minority interest in
Plato to receive a significant portion of their compensation in PAQ's shares. I am pleased to welcome them as past partners and now
shareholders with fully aligned interests.
We have added to our international platform with the introduction of new distributors in Japan, Korea and Thailand. We have seen
significant growth from our existing distributors with 30% growth in Finland, Sweden and Norway, and 40% growth in Latin America. We intend
to move aggressively to consolidate and grow our market position in Europe by establishing warehousing and distribution facilities with
which we aim to improve response times and service.
We have partnered with an Italian designer for 3 new series of branded PAQ products to be released in 2008, further enhancing our
existing product lines.
Appreciation
Finally, on behalf of the Board, I would like to thank our customers, suppliers and shareholders for their continued support of PAQ
International Holdings Limited. I would also like to recognize the hard work from the management team and our highly dedicated team of
employees for their contributions to the Group.
Kelvin Kwong Chi Yau
Chairman and Chief Executive Officer
A copy of the annual report has been sent to all shareholders and can be found on www.paq-intl.com
The Annual General Meeting of the Company will be held at Founder's Room, 3/F, South Tower, YMCA of Hong Kong, 41 Salisbury Road,
Tsimshatsui, Kowloon, Hong Kong at 10.00 am on 12 August 2008.
Contact
Kelvin Kwong Chi Yau - PAQ International Holdings Limited +852 2882 8284
Dominique Doussot - Zimmerman Adams International - +44 (0)20 7060 1760
Nominated Adviser and Broker
Unaudited proforma consolidated income statement
For the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Revenue 67,296 49,757
Cost of sales (55,033 ) (37,662 )
Gross profit 12,263 12,095
Other income 12,727 5,807
Distribution costs (1,064 ) (1,184 )
Administrative expenses (5,706 ) (4,887 )
Other operating expenses (2,416 ) (2,014 )
Profit from operations 15,804 9,817
Finance costs (740 ) (612 )
Profit before taxation 15,064 9,205
Income tax (2,900 ) (1,500 )
Profit for the year 12,164 7,705
Dividend payable to shareholders of the
Proforma group attributable to the year:
Interim dividend declared during the year 10,000 -
Earnings per share
Basic (HK cents)
- Based on number of shares of 112,622,010
upon completion of group restructuring and
acquisition 10.80 6.84
Unaudited proforma consolidated balance sheet
At 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Non-current assets
Property, plant and equipment 1,591 2,114
Current assets
Inventories 4,734 6,119
Trade and other receivables 21,378 14,005
Pledged bank deposits 543 526
Cash and cash equivalents 54 489
26,709 21,139
Current liabilities
Trade and other payables 8,000 9,548
Current taxation 4,400 1,500
Bank loans and overdrafts 8,016 6,379
20,416 17,427
Net current assets 6,293 3,712
Total assets less current liabilities 7,884 5,826
Non-current liabilities
Bank loans 9 116
Net assets 7,875 5,710
Proforma shareholders' equity 7,875 5,710
Unaudited proforma consolidated cash flow statement
For the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Operating activities
Profit before taxation 15,064 9,205
Adjustments for:
Interest income (24 ) (21 )
Interest paid 740 612
Depreciation 631 610
Impairment loss on trade receivables 90 181
Operating profit before changes in working capital 16,501 10,587
Decrease/(increase) in inventories 1,385 (6,119 )
Increase in trade and other receivables (7,463 ) (9,828 )
(Decrease)/increase in trade and other payables (1,548 ) 4,604
Cash generated from/(used in) operations 8,875 (756 )
Interest paid (740 ) (612 )
Net cash generated from/(used in) operating 8,135 (1,368 )
activities
Investing activities
Purchase of property, plant and equipment (108 ) (524 )
Interest received 24 21
Increase in pledged bank deposits (17 ) (17 )
Net cash used in investing activities (101 ) (520 )
Financing activities
Proceeds from issue of shares 1 5
Proceeds from new bank loans - 300
Repayment of bank loans (280 ) (247 )
Dividend paid to shareholders (10,000 ) -
Net cash (used in)/generated from financial (10,279 ) 58
activities
Net decrease in cash and cash equivalents (2,245 ) (1,830 )
Cash and cash equivalents at 1 January (5,608 ) (3,778 )
Cash and cash equivalents at 31 December (7,853 ) (5,608 )
PAQ International Holdings Limited
Audited Income statement for the period from 23 November 2007
(date of incorporation) to 31 December 2007
(Expressed in Hong Kong dollars)
$'000
Revenue -
Administrative expenses (350 )
Loss before taxation (350 )
Income tax -
Loss for the period and attributable to shareholders (350 )
PAQ International Holdings Limited
Audited Balance sheet at 31 December 2007
(Expressed in Hong Kong dollars)
$'000
Current asset
Cash on hand 1
Current liabilities
Accrued expenses (350 )
Net liabilities (349 )
Capital and reserves
Share capital 1
Retained losses (350 )
Total equity (349 )
Approved and authorised for issue by the board of directors on 25 June 2008.
PAQ International Holdings Limited
Statement of changes in equity for the period from 23 November 2007
(date of incorporation) to 31 December 2007
(Expressed in Hong Kong dollars)
$'000
Issue of share 1
Loss for the period (350 )
Total equity at 31 December 2007 (349 )
PAQ International Holdings Limited
Audited Cash flow statement for the period from 23 November 2007
(date of incorporation) to 31 December 2007
(Expressed in Hong Kong dollars)
$'000
Operating activities
Loss before taxation (350 )
Increase in accrued expenses 350
Net cash generated from operating activities -
Financing activities
Proceeds from issue of share 1
Net increase in cash and cash equivalents
and cash and cash equivalents at 31 December 2007 1
PAQ Manufacturing Limited
Audited Consolidated income statement
for the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Turnover 24,637 22,372
Cost of sales (18,270 ) (13,820 )
Gross profit 6,367 8,552
Other income 17,856 8,513
Distribution costs (666 ) (1,010 )
Administrative expenses (4,876 ) (4,150 )
Other operating expenses (1,717 ) (1,872 )
Profit from operations 16,964 10,033
Finance costs (724 ) (612 )
Profit before taxation 16,240 9,421
Income tax (2,900 ) (1,500 )
Profit for the year 13,340 7,921
Dividend payable to shareholders of the
company attributable to the year:
Interim dividend declared during the year 10,000 -
PAQ Manufacturing Limited
Audited Consolidated balance sheet at 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Non-current assets
Property, plant and equipment 1,586 2,093
Current assets
Inventories 4,735 6,119
Trade and other receivables 22,478 13,800
Pledged bank deposits 543 526
Cash and cash equivalents 49 160
27,805 20,605
Current liabilities
Trade and other payables 7,487 8,350
Current taxation 4,400 1,500
Bank loans and overdrafts 7,802 6,379
19,689 16,229
Net current assets 8,116 4,376
Total assets less current liabilities 9,702 6,469
Non-current liabilities
Bank loans 9 116
Net assets 9,693 6,353
Capital and reserves
Share capital 1 1
Retained profits 9,692 6,352
Total equity 9,693 6,353
Approved and authorised for issue by the board of directors on 25 June 2008.
PAQ Manufacturing Limited
Audited Company balance sheet at 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Non-current assets
Property, plant and equipment 240 263
Investment in subsidiary 1,000 1,000
1,240 1,263
Current assets
Trade and other receivables 21,776 15,788
Pledged bank deposits 543 526
Cash and cash equivalents 11 42
22,330 16,356
Current liabilities
Trade and other payables 1,689 3,355
Current taxation 4,400 1,500
Bank loans and overdrafts 7,802 6,379
13,891 11,234
Net current assets 8,439 5,122
Total assets less current liabilities 9,679 6,385
Non-current liabilities
Bank loans 9 116
Net assets 9,670 6,269
Capital and reserves
Share capital 1 1
Retained profits 9,669 6,268
Total equity 9,670 6,269
Approved and authorised for issue by the board of directors on 25 June 2008.
PAQ Manufacturing Limited
Audited Consolidated statement of changes in equity
for the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Total equity at 1 January 6,353 (1,568 )
Profit for the year and total recognised income
and expense for the year 13,340 7,921
Dividend declared and paid during the year (10,000 ) -
Total equity at 31 December 9,693 6,353
PAQ Manufacturing Limited
Audited Consolidated cash flow statement
for the year ended 31 December 2007
2007 2006
$'000 $'000
Operating activities
Profit before taxation 16,240 9,421
Adjustments for:
Interest income (18 ) (19 )
Interest paid 724 612
Depreciation 616 595
Impairment loss on trade receivables 90 181
Operating profit before changes in working capital 17,652 10,790
Decrease/(increase) in inventories 1,384 (6,119 )
Increase in trade and other receivables (8,768 ) (10,982 )
(Decrease)/increase in trade and other payables (863 ) 5,324
Cash generated from/(used in) operations 9,405 (987 )
Interest paid (724 ) (612 )
Net cash generated from/(used in) operating 8,681 (1,599 )
activities
Investing activities
Purchase of property, plant and equipment (109 ) (522 )
Interest received 18 19
Increase in pledged bank deposits (17 ) (17 )
Net cash used in investing activities (108 ) (520 )
Financing activities
Proceeds from new bank loans - 300
Repayment of bank loans (280 ) (248 )
Dividend paid (10,000 ) -
Net cash (used in)/generated from financial (10,280 ) 52
activities
Net decrease in cash and cash equivalents (1,707 ) (2,067 )
Cash and cash equivalents at 1 January (5,937 ) (3,870 )
Cash and cash equivalents at 31 December (7,644 ) (5,937 )
Plato Leatherware Company Limited
Audited Income statement
for the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Turnover 42,659 27,386
Cost of sales (36,764 ) (23,842 )
Gross profit 5,895 3,544
Other income 116 23
Distribution costs (2,571 ) (1,293 )
Administrative expenses (830 ) (743 )
Other operating expenses (3,422 ) (1,747 )
Loss from operations (812 ) (216 )
Finance costs (15 ) -
Loss before taxation (827 ) (216 )
Income tax - -
Loss for the year (827 ) (216 )
Plato Leatherware Company Limited
Audited Balance sheet at 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Non-current assets
Property, plant and equipment 5 21
Current assets
Trade and other receivables 4,338 2,934
Cash and cash equivalents 6 239
4,344 3,263
Current liabilities
Trade and other payables 5,603 3,925
Bank overdrafts 214 -
5,817 3,925
Net current liabilities (1,473 ) (661 )
Net liabilities (1,468 ) (641 )
Capital and reserves
Share capital 15 15
Retained losses (1,483 ) (656 )
Total equity (1,468 ) (641 )
Approved and authorised for issue by the board of directors on 25 June 2008.
Plato Leatherware Company Limited
Statement of changes in equity
for the year ended 31 December 2007
(Expressed in Hong Kong dollars)
2007 2006
$'000 $'000
Total equity at 1 January (641 ) (430 )
Loss for the year (827 ) (216 )
Issue of shares - 5
Total equity at 31 December (1,468 ) (641 )
Plato Leatherware Company Limited
Audited Cash flow statement
for the year ended 31 December 2007
2007 2006
$'000 $'000
Operating activities
Loss before taxation (827 ) (216 )
Adjustments for:
Interest income (5 ) (2 )
Interest paid 15 -
Depreciation 16 15
Operating loss before changes in working capital (801 ) (203 )
Increase in trade and other receivables (1,404 ) (1,574 )
Increase in trade and other payables 1,678 2,010
Cash (used in)/generated from operations (527 ) 232
Interest paid (15 ) -
Net cash (used in)/generated from operating (542 ) 233
activities
Investing activities
Purchase of property, plant and equipment - (3 )
Interest received 5 2
Net cash generated from/(used in) investing 5 (1 )
activities
Financing activities
Proceeds from issue of shares - 5
Net (decrease)/increase in cash and cash (537 ) 237
equivalents
Cash and cash equivalents at 1 January 329 92
Cash and cash equivalents at 31 December (208 ) 329
This information is provided by RNS
The company news service from the London Stock Exchange
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