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Principal Activities

Principally engaged in the manufacturing and trading of apparels and accessories. The Group has manufacturing plants in the People’s Republic of China (the “PRC”), Cambodia, the Philippines, Vietnam, Indonesia, Thailand and Myanmar.

Latest Results

The Group's profit attributable to shareholders for the year ended 31-12-2018 amounted to USD 23.30 million, an increase of 6.4% compared with previous corresponding period. Basic earnings per share was USD 0.0225. A final dividend of USD 0.00414 per share was declared. Turnover amounted to USD 851.0 million, an increase of 10.7% over the same period last year, gross profit margin down 0.4% to 15.0%. (Announcement Date: 28 Mar 2019)

Business Review - For the year ended December 31, 2018


For the year of 2018, revenue generated from the Apparel Division was approximately US$530,958,000. As compared to 2017, the revenue of the Apparel Division decreased slightly by approximately US$63,000 or 0.01%. The revenue of the Apparel Division remained stable was mainly due to the offsetting effect of increase in average selling price and reduced orders from certain customers.

The segment profit of the Apparel Division amounted to approximately US$14,938,000, representing a substantial decrease of approximately 29.4% or US$6,227,000 as compared to the last year. Such decline was a result of provision of one-off tax settlement proposed to the Hong Kong Inland Revenue Department amounted to approximately US$7,587,000. Excluding the one-off provision in relation to the tax settlement, the segment profit of the Apparel Division would remain stable at approximately US$22,525,000 due to the continuous improvement in streamlining our cost structure and the strength of our underlying customer base.


As mentioned in latest interim report of the Company, those travel goods and bags manufactured in our major production facilities in the Philippines and Cambodia were able to enjoy tax exemptions under different Generalized Scheme of Preferences (“GSP”) arrangements and free trade agreements to certain countries. Due to the escalation of trade conflict between China and USA during the year under review, increasing brand owners were shifting their production out of China in order to evade additional tariffs and to maintain competitiveness. Consequently, our production facilities in the Philippines and Cambodia were able to enjoy early-mover advantage and increased its market share.

The revenue of the Accessories Division contributed to the Group during the year increased by approximately 34.8% to approximately US$320,042,000. In line with the considerable growth in the segment revenue, the segment profit of the Accessories Division increased by approximately 80.3% to approximately US$19,163,000 when compared with last year. The remarkable growth in the segment profit was mainly attributable to (i) strong growth momentum of order inflows from certain existing major customers; (ii) GSP benefits enjoyed by our production facilities in Philippines and Cambodia; (iii) elimination of non-profitable orders from one of the customers; and (iv) positive impact of completion of the acquisition of the Universal Group.

Business Outlook - For the year ended December 31, 2018

Vast growth potential of sportswear apparel

Due to the general enhancement of peoples’ living standards, people across much of the globe are more conscious of their psychological and physical well-beings. Sporting activities are not just social occasions and people from different age groups are actively taking part in a variety of sports. Under such circumstances, the sportswear market continued its upward trend in recent years.

To gain more market share of the sportswear market, the Group shall work closely with our core customers in the development of high quality and unique design sports apparel products. Through the collaboration with our strategic customers, we believe that the sportswear apparel business will drive the stable and healthy revenue growth of the Apparel Division in the foreseeable future.

Expansion of accessories business

In order to expand the production capacity of bags, the Group acquired the Universal Group during the year. Through the acquisition of the Universal Group, the Group possessed new production facilities in Myanmar and Thailand (“New Production Sites”) and these production facilities were integrated into the Group in October 2018. The New Production Sites have alleviated the pressure brought by our customers demanding extra production capacities outside China due to the trade tension between the USA and China. With the New Production Sites, coupled with the existing production sites in Philippines and Cambodia, the Group now owns production facilities in four GSP beneficiary countries. Hence, the acquisition of Universal Group further enhanced our Group’s competitiveness in the production of bags and also reinforced our strategy of diversification of production bases in the Southeast Asia countries at the same time.

In addition, the accessories business is anticipated to be the key growth driver of the Group in the foreseeable future. The Group will fully utilize the advantage of those trade preference schemes which enjoyed by our existing major production sites (i.e. Philippines and Cambodia) and our new major production sites (i.e. Myanmar and Thailand) through continuous expansion of production capacities in these countries.

Looking forward, the Group will devote more effort to facilitating the prompt and smooth integration of the production facilities in Myanmar and Thailand into the production model of the Group. With the steady improvement of the apparel business and the robust growth of the accessories business, we are optimistic about the prospects of our business in the long run. However, in view of a series of strikes to the global economy, the Group would adopt a cautious approach in implementing its business expansion plan and in capturing new market opportunities.

Source: Luen Thai Hold (00311) Annual Results Announcement

Business Nature

The Group¡¦s core activity is the manufacturing of apparel on an OEM basis, primarily of knit wear and woven wear. In addition, the Group produces sleepwear, intimate wear, pants and shorts, sports and active wear, ladies¡¦ fashion and children''s wear. The Group''s top customers consist of branded apparel makers, department stores and other retailers including: Dillard''s , Express,Limited Brands, Fast Retailing, Liz Claiborne and Polo Ralph Lauren.


Customer Partnership: The Group will continue to grow as it gains new customers and develop closer partnership with its existing key customers through its D2S business model together with its multi product and co-location strategies. The Group¡¦s diversified manufacturing base will be important to its customers in mitigating country and political risks. Acquisitions and Joint Ventures: The Group will continue to strengthen its multi-country and multi-product strategy through selective and value-enhancing acquisitions and joint ventures with the view of achieving the same success as what it has in GJM, Tomwell, Yuen Thai and Tien-Hu.

TAN Siu Lin
Contact Info
Company Address:
Rooms 1001–1005, 10/F, Nanyang Plaza, 57 Hung To Road, Kwun Tong, Kowloon, Hong Kong
HSI: 26,179.33 130.61
0.01 (1.4%)
As of16:15 23 Aug 2019
Open: 0.73 52Wk High: 1.08
Day High: 0.75 52Wk Low: 0.79
Day Low: 0.69 P/E: 4.079
Prev. Close: 0.71 Yield: 7.333%
Volume: 119K
Mkt Cap: 734.22M
Turnover: 86.2K NAV: 1.545
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Company Address:
Rooms 1001–1005, 10/F, Nanyang Plaza, 57 Hung To Road, Kwun Tong, Kowloon, Hong Kong

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