Come Sure Group (Holdings) Limited announced its annual results for the year ended 31 March 2017/
Upon the completion of strategic internal business integration, the Group improved the facilities in terms of resource sharing, and enhanced the production efficiency. During the Year, the Group's Fujian plant also commenced operation in August 2016, the Group's production capacity expansion continued. In addition, benefited from the market changes, balance between product supply and demand was gradually restored, enabling the Group to achieve its sales target of the Year and successfully turned around into profit.
The Group recorded an increase in the revenue of 3.7%. During the Year, as compared to approximately HK$815.0 million last year, the revenue increased by approximately HK$30.5 million to approximately HK$845.5 million for the Year.
During the Year, the climbing paper prices inflated the cost of production. However, with the competitive edge developed throughout the years, the Group managed to transfer the rising cost from raw materials to customers effectively.
Meanwhile, the newly operated Fujian Plant had been only producing corrugated paper-board, the cost could also be immediately reflected from the prices. Moreover, as an industry leader, the Group established sustainable business relationships with the major suppliers from long-term collaboration.
Therefore, the Group was still capable of obtaining stable supply, under the challenging business environment with rising costs and undersupply of raw materials.
The sufficient inventory levels allowed the Group to grasp opportunities from rising prices in paper products and enabled it to secure the gross profit margin against the fluctuating paper cost during the Year. Over the years, the Group has not only gained support from loyal customers, but also been attracting more orders from the high-end customers with its reputation of producing high-quality corrugated boxes and paper wares. The sales performance therefore, has been getting more satisfactory.
With effective internal cost control of the Group, the adverse factors affecting the gross profit were also eliminated, leading its gross profit to grow by 8.7% to approximately HK$184.9 million (2016: approximately HK$170.1 million). The gross profit margin also increased from 20.9% of last year to 21.9% during the Year.
During the Year, the Group’s bank and cash balances was approximately HK$250.4 million (As at 31 March 2016: approximately HK$121.9 million). The profit attributable to shareholders amounted to approximately HK$18.4 million (loss in 2016: approximately HK$66.0 million). The basic earnings per share was HK5.07 cents (basic loss per share in 2016: HK18.22 cents). The Board does not recommend the payment of the final dividend for the Year.