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Public company info - TEM Holdings Limited , 08346.HK
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TEM Holdings Limited, 08346.HK - Company Profile
Chairman Lau Man Tak
Share Issued (share) 600,000,000
Par Currency Hong Kong Dollar
Par Value 0.01
Industry Industrial Goods
Corporate Profile Business Summary: The principal activities of the Group are manufacture and sale of wire/cable harnesses and power supply cords assembled products; and trading of terminals, connectors and others. Performance for the year: The Group’s revenue decreased from approximately HK$96,163,000 for the year ended 30 June 2019 to approximately HK$93,971,000 for the year ended 30 June 2020. The Group recorded a loss for the year ended 30 June 2020 was approximately HK$14,192,000. Business Review: The Group is principally engaged in the manufacture and sale of wire/cable harnesses and power supply cords assembled products, with the Group’s manufacturing operations in Malaysia and the People’s Republic of the China (the “PRC”) and has more than 20 years of experience in the wire/cable harness industry. The Group also sell terminals and connectors. The customers of the Group are generally global brand name home/consumer appliances manufacturers and original equipment manufacturers in the home/consumer appliances and industrial products industries that mainly based in the Asia Pacific region. For the year ended 30 June 2020, the Group recorded a revenue of approximately HK$93,971,000, a drop of approximately 2.3% from the last year. Gross profit declined by 31.3% from approximately HK$13,457,000 for the year ended 30 June 2019 to HK$9,246,000 for the year ended 30 June 2020. The decline in gross profit was mainly caused by (i) the provision of write-down of inventories amounted approximately HK$3,407,000; and (ii) the adoption of a more competitive pricing strategy under the intensive market competition. The loss for the year was approximately HK$14,192,000, increased by approximately 31.9% from HK$10,763,000 for the year ended 30 June 2019. The outbreak of the COVID-19 in early 2020 and the trade tension between China and the United States have disrupted the world economy to a large extent. During the year under review, series of stringent precautionary and control measures have been implemented by governments of various countries and regions, in some of which the Group has manufacturing plants, to control the spread of the COVID-19, which led to market uncertainties and instabilities of the orders for the Group’s products. Segment information The Group manages its business by three operating segments which are (i) manufacture and sale of wire/cable harnesses, (ii) manufacture and sale of power supply cords assembled products and (iii) trading of terminals, connectors and others. Geographical information The revenue from the PRC recorded HK$30,546,000 for the year ended 30 June 2020, accounted for 32.5% of the Group’s total revenue which represented an increase of 11.1% as compared to approximately HK$27,499,000 for the year ended 30 June 2019. The revenue from Asia Pacific region (excluding the PRC) was approximately HK$46,090,000 for the year ended 30 June 2020 and accounted for 49.1% of the Group’s total revenue, representing a decrease of 10.7% as compared to approximately HK$51,595,000 for the year ended 30 June 2019. The revenue from Western Europe was approximately HK$11,766,000 for the year ended 30 June 2020 and accounted for 12.5% of the Group’s revenue, representing an increase of 3.4% as compared to approximately HK$11,381,000 for the year ended 30 June 2019. The revenue from Americas was approximately HK$5,569,000 for the year ended 30 June 2020 and accounted for 5.9% of the Group’s total revenue, representing a decrease of 2.1% as compared to approximately HK$5,688,000 for the year ended 30 June 2019. The rapid outbreak and large-scale spread of the COVID-19 across the world since February 2020 had a disruptive impact on the economic sentiment coupled with unstable supply chains of various industries in many countries resulting a signification reduction of economic activities worldwide. The Group’s PRC Factory resumed production on 12 February 2020, three weeks after production halt since the Chinese New Year holidays and the suspension period prescribed by the relevant PRC Government authorities which, amongst other things, lead to the drop of production capacity in the Group’s PRC Factory. The Group’s Malaysia Factory was also affected by the implementation of the Restriction of Movement Order (the “Order”) announced by the Malaysian Government on 16 March 2020. This Order, effective nationwide initially for 2 weeks from 18 March 2020 and the Group’s Malaysia Factory was therefore requested to shut down. The Group had managed to obtain the conditional approval on 19 April 2020 from the Malaysia government to partially resume the operation in the Group’s Malaysia Factory subject to certain health precautionary requirements. Nonetheless, under these circumstances the production capacity of the Group’s Malaysia Factory is still far behind from its full capacity due to the uncertainty of labour workforce and lower efficiency after implementing the necessary measures to curb against the COVID-19. The Order was later changed to Conditional Movement Control Order on 4 May 2020 and then to Recovery Movement Control Order (the “RMCO”) on 10 June and the RMCO will be extended until the end of 2020. The continuance of the RMCO is expected to continue to have a disruption on the Group’s Malaysia Factory’s operations including delay in receipt of raw material and delivery of finished products and the receipt of visit of customers from outside Malaysia. As at the date of this announcement, both the Group’s PRC and Malaysia Factories had substantially restored to its normal operation. For the year under review, the overall demand for electronic products and components had fallen due to the battered global economy by the COVID-19 outbreak. Besides, the outlook for coming months is uncertain especially with the recent levels of geopolitical risk increased in particular markets and are expected to have economic impacts for the worldwide. Prospects: It was an unprecedented year of challenge for the Group in the financial year of 2019/20. The trade tensions between China and the United States lingered in 2019 followed by the outbreak of the COVID-19 pandemic in early 2020. The Group encounter a global economy overcast by a lot of uncertainties. The Group will closely monitor how such developments will affect the Group’s operations and will utilize the Group’s utmost efforts to mitigate those impacts.

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