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Public company info - Sinomax Group Ltd. , 01418.HK

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Sinomax Group Ltd., 01418.HK - Company Profile
Chairman LAM Chi Fan
Share Issued (share) 1,750,000,000
Par Currency Hong Kong Dollar
Par Value 0.1
Industry Furniture & Household Goods
Corporate Profile Business Summary: The Company manufacture and sell health and household products. Performance for the year: Revenue for the Reporting Period increased by approximately HK$234.4 million or 7.8% to approximately HK$3,231.7 million, as compared to approximately HK$2,997.3 million for FY2019. Profit/(loss) for the Reporting Period increased by approximately HK$273.1 million or 128.8% to a profit of approximately HK$61.1 million, as compared to a loss of approximately HK$212.0 million for FY2019. Business Review: During the Reporting Period, revenue of the Group increased by approximately HK$234.4 million or approximately 7.8% to approximately HK$3,231.7 million (FY2019: approximately HK$2,997.3 million). Sales in the China market decreased by approximately 10.8% for the Reporting Period, as compared to FY2019 due to the outbreak of the COVID-19 pandemic and its impact on the general economy of the People’s Republic of China (“the PRC”). In the North American market, the Group diversified the Group’s customer base by developing business relationship with more new customers, as a result of which sales in this region increased by approximately 28.9% for the Reporting Period, as compared to FY2019. In Europe and other overseas markets, the Group recorded an increase of sales in this region of approximately 150.6% for the Reporting Period, as compared to FY2019. The increase was due to the increase in the Group’s sales to customers in Vietnam. The outbreak of COVID-19 represents an unprecedented disruption to the global economy. The Group’s business was heavily affected by COVID-19 in the first fthe Group’s months of 2020. Demands from customers were weak and it was difficult to source materials from overseas suppliers and deliver goods to customers globally during said period of time due to, among other things, disruption to global logistics and extensive business suspension across the global supply chains. Sales dropped by approximately 32.5% in the first fthe Group’s months of 2020 comparing to the corresponding period in 2019. Accordingly, the Group has put in place various cost controls to reduce the Group’s operating costs in order to mitigate such impacts. In the meantime, governments across the globe have imposed various degrees of national lockdowns and/or encouraged their citizens to stay at home as a result of the COVID-19 outbreak, which created stronger demands for household products. More products were purchased through online channels. Sales orders bounced back starting from the second quarter of 2020. Sales for the Reporting Period increased by approximately 7.8% comparing to FY2019, which was mainly contributed by the increase in sales to several online sales customers. There has been no material impact on the Group’s liquidity position and working capital sufficiency as a result of the COVID-19 outbreak. The Group will closely monitor the situation and the Group’s exposure to the risks and uncertainties in connection with COVID-19, and assess and react proactively to its impacts on the financial position and results of the Group from time to time. Prospects: Following the outbreak of COVID-19, the US – China trade war and the anti-dumping duty imposed on products importing from various countries, US importers have started to review their supply chains and will pay more attention to suppliers who have the ability to supply in the US. Having factories in China, the US and Vietnam, the Group are able to supply globally to the Group’s customers with various needs and arrange the Group’s production and logistics schedules with flexibility to minimise the overall costs including production, tariff and transportation. Since last year, the Group have allocated more resources in developing a more diversified customer base with online sales. Sales from these customers started to increase since the second quarter of 2020. With the outbreak of COVID-19, more sales have been conducted through online channels where Mattress-in-a-Box (“MIB”) is one of the major products sold through these online channels. Demands for MIB have been encouraging Facing with the increasing demands in the US, the Group are going to increase the Group’s production capacity in the US. As disclosed in the announcement of the Company dated 1 February 2020, the Group entered into a new lease agreement to rent a factory which is located in the proximity of the Group’s existing US factory. The new lease would facilitate and expand the Group’s operations in the existing US factory and in turn enable the Group to meet the Group’s customers’ growing demands in the US. More equipment and resources would be invested to cope with the increasing demands in the US. Recently, prices of various key materials are increasing, particularly in the US market. The Group will monitor the Group’s material costs closely and discuss with the Group’s customers for the possibility of transfering the increased costs to the Group’s customers as and when necessary. At the same time, the Group will rearrange the Group’s logistics and production schedules in various locations to minimise the Group’s overall costs. In the China market, the Group offers a wide range of health and household products, under its flagship brand “SINOMAX”. The Group will further enhance brand management through various marketing activities to reinforce brand recognition and enhance the image of health, relaxation and comfort of the “SINOMAX” brand. Sales under the brands “SPA Supreme” and “Zeosleep” increased steadily. The Group will continue to promote its brands and products to corporate customers so as to attract more corporate sales. The Group will continue to deploy more resources to strengthen the Group’s sales through e-commence Based on the increasing demands of the Group’s customers, the Group are optimistic about the Group’s future performance. The Group will continue to upgrade the Group’s machinery so as to improve the Group’s production efficiency and increase the Group’s competitiveness.

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