We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Jiasen Int. | LSE:JSI | London | Ordinary Share | VGG5139D1078 | ORD USD0.1 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.875 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMJSI
RNS Number : 7194C
Jiasen International Holdings Ltd
30 June 2016
JIASEN INTERNATIONAL HOLDINGS LIMITED
FiNAL RESULTS FOR THE YEARED 31 DECEMBER 2015
Jiasen International Holdings Limited ("Jiasen" or "the Company"), together with its subsidiaries ("the Group"), is pleased to report its final results for the year ended 31 December 2015 (FY2015). Jiasen is a designer, manufacturer and wholesaler of wooden home furnishings, high-end solid wooden doors and other wooden design solutions to both the domestic Chinese and overseas markets.
FINANCIAL KEY POINTS
-- Revenue for the year ended 31 December 2015 decreased by 27% to RMB 639.2 million (FY2014: RMB 870.9 million) reflecting a slowdown in China's economic growth which has had an adverse effect on consumer confidence and demand across many sectors, including property.
-- Profit before tax for the year ended 31 December 2015 decreased by 64% to RMB 77.9 million (FY2014: RMB 214.4 million), inclusive of a provision against bad debts of RMB 52.3 million.
-- Profit after tax for the year ended 31 December 2015 decreased by 65% to RMB 55.8 million (FY2014: RMB 158.5 million).
-- Cash and cash equivalents as at 31 December 2015 decreased by 10% to RMB 299.1 million (FY2014: RMB 333.9 million).
-- Following the review of our dividend policy announced at our interim results, the Board has decided to suspend dividend payments in light of the difficult trading environment, and will review it again when conditions and the Company's performance improves.
OPERATIONAL KEY POINTS
-- The Group now has 16 distributors which operate 54 outlets across China.
-- Diversification away from non-door products to mitigate market margin erosion seen with bulk door supply has continued to be a core focus of the Group.
-- Exports remain a small part of the business contributing 13.4% of revenue in 2015 (2014: 12.6%).
-- Furniture and fittings accounted for 67.7% (2014: 60.2%) whilst doors contributed 20.4% (2014: 28.2%) of the Group's revenue.
-- In light of the wider macroeconomic conditions and reduced demand for our products in the property segment, the Board has agreed with the local government (Quanzhou Economic Development District - Guangqiao Sector) ("QEDD") to defer the decision to purchase 47 hectares of land for its new factory until the end of 2016. Should the Company decide against the investment, QEDD will refund the down payment in full.
-- The Group has made a provision of RMB 52.3 million against an outstanding debt of RMB 84.6 million. An agreement has been reached with the customer stipulating that the balance be repaid as the properties within which the Group's products were installed are ultimately sold. However, due to the current status of China's property market, the directors have chosen to provide against a significant portion of this outstanding balance.
OUTLOOK
-- Trading in the first five months of 2016 has continued to be challenging.
-- The Board expects trading conditions to remain challenging over the short to medium term, particularly for the property segment of the business, but it continues to have confidence in the long term fundamentals of China's property market driven by a change in child policy, continued urbanisation and the importance of home ownership in China.
-- The Group will continue to scale back the property segment, which took place in the last three months of 2015, in an attempt to mitigate the risk of bad debt.
-- We will look to appoint new distributors and increase our marketing and promotional activities to ensure the business is better positioned than if it were to remain heavily reliant upon its property segment.
COMMENTING ON THE RESULTS, WEIGANG CHEN (CHAIRMAN) SAID:
"It has been a very challenging time for the Chinese property market as the economy has slowed. The Group has seen consumer confidence impacted as a result and this is effecting our revenue. Jiasen is taking mitigating actions to ensure that we are protected both now and in the short to medium term by diversifying our revenue mix, reviewing the purchase of land for our new factory, and suspending dividend payments. The Board remains committed to the long term opportunities that the Chinese property market offers, and is confident that we have the fundamentals in place to manage the business through these challenging times."
For further information, please visit www.jsih.net or contact:
Jiasen International Holdings Limited Gareth Wong +86 18016603993 -------------------------- -------------- ---------------- Cairn Financial Advisers LLP Jo Turner +44 (0)20 7148 (Nominated Adviser) Liam Murray 7900 -------------------------- -------------- ---------------- Beaufort Securities Limited +44 (0)20 7382 (Broker) Elliot Hance 8300 -------------------------- -------------- ---------------- David Roach +44 (0)20 7930 Cardew Group Emma Ruttle 0777 -------------------------- -------------- ----------------
Notes to Editors
-- Jiasen is an international property fit-out business specialising in designing, manufacturing, kitting and installation of multiple wooden products for residential properties. The Company was established in 2001 and is based in Quanzhou City, Fujian province, located in south-eastern China. Its products are sold and marketed under the 'Fuyou' brand and produced in its 83,000 sqm factory in Nan'an City, Fujian province.
-- Jiasen's main products include doors, wall panels and assorted fixtures, such as fitted wardrobes, cupboards and skirting boards, and furniture which are sold principally to property development projects, through branded 'Fuyou' retail stores and to export markets. The Company's products are sold in three main segments: residential and property development projects, wholesale distribution and export.
EXECUTIVE CHAIRMAN'S STATEMENT
Introduction
The slowdown in China's economic growth has had an adverse effect on consumer confidence and demand across many sectors, including property. These external factors have affected our performance. Group revenues for the period decreased by 26.6% to RMB 639.2 million (2014: RMB 870.9 million) reflecting a slowdown in sales for our multiple wooden-products and reduced demand for high-end Refined Housing Decoration (RHD) or "semi-furnished homes".
The property segment of our business contributed 41.7% of our group revenues (2014: 61.9%). The distribution segment of our business performed strongly and revenues grew by 29.4% to RMB 286.9 million (2014: RMB 221.7 million) as a result of new outlets opened during the period. The Company now has 16 distributors which operate 54 outlets across China. Export remains a small part of our business contributing 13.4% of revenue in 2015 (2014: 12.6%).
Diversification away from non-door products to mitigate market margin erosion seen with bulk door supply has continued to be a core focus and this has been particularly successfully. Furniture and fittings accounted for 67.7% (2014: 60.2%) whilst doors contributed 20.4% (2014: 28.2%) of group revenue.
Strategy
China's economic slowdown has had an impact on demand for RHD as property developers delayed projects or decreased their investment in residential developments in 2015. We expect trading conditions to remain challenging over the short to medium term, particularly for the property segment of our business.
In light of this and in order to better position the business, the Board has taken action to reconsider the sales strategy for the Group to scale back the property segment, which took place in the last three months of 2015 and continues into 2016, in order to insulate the business from the risk of doubtful debts against trade receivables. This is highlighted by the fact that a charge against doubtful debts amounting to RMB 52.3 million is recorded in the Statement of Comprehensive Income for the year ended 31 December 2015. The Group will continue to work with property developers but is likely to use intermediaries and therefore there will be a change to segmental revenues in 2016. Overall, the Group expects to switch its focus onto the wholesale distribution segment and servicing retail outlets until there is a recovery in the housing market which is not expected in the short term.
Our core customers within the wholesale distribution business are homeowners and interior designers who want to furnish their own homes or refurbish their existing homes. During the year, we began to work more closely with our distributors and going forward, we will look to appoint new distributors and increase our marketing and promotional activities to enhance performance. These actions will ensure the business is better positioned than it would have been having a reliance on the property segment within the current market environment and allow for greater cost control.
Diversification of our product offering remains a core focus and we will continue to increase the sale of non-door products through our wholesale distribution segment. We continue to look seek suitable, complementary foreign brands in permanent fixtures for strategic collaboration in the medium to long-term.
Land Purchase and Future Development
In light of the wider macroeconomic conditions and reduced demand for our products in the property segment, the Board has decided to review the decision to purchase 47 hectares of land for its new factory. The Company has verbally agreed with the local government (Quanzhou Economic Development District - Guangqiao Sector) ("QEDD") to defer the decision to invest in the new land until the end of 2016. The total cost of the land is RMB 217 million and the Company made a down payment of RMB 69 million on February 2015. Should the Company decide against the investment, QEDD will refund the down payment in full. The Board will review the investment over the next few months against the economic backdrop and the property market and decide on the best course of action for the long term future of the business and its shareholders.
Dividend Policy
Following a review of the dividend policy as announced at our interim results on 25 September 2015, the Board has decided to suspend dividend payments in light of the difficult trading environment. The Board will review the dividend policy again when economic conditions and the Company's performance improves and following the further appraisal of the proposed factory development.
Outlook
Trading in the first five months of 2016 has continued to be challenging. While we have confidence in the long term fundamentals of China's property market driven by a change in child policy, continued urbanisation and the importance of home ownership in China, we expect the trading environment to continue to be difficult for the remainder of 2016. In order to better position the business in the short to medium term, Jiasen
-- has temporarily scaled back activity in the property segment to control costs and mitigate business risk in this slower market;
-- is focusing on the wholesale distribution segment of the business which is significantly less exposed to volatility in the new property build market; and
-- has deferred the further payment and purchase of the new land use rights for factory development until the end of 2016.
Weigang Chen
Executive Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AT 31 DECEMBER 2015
2015 2014 RMB'000 RMB'000 Revenue 639,188 870,902 Cost of sales (466,469) (603,361) Gross profit 172,719 267,541 ---------- ---------- Other operating income 4,166 5,843 Selling and distribution expenses (25,342) (37,242) Administrative expenses (16,925) (18,105) Other expenses (53,446) (411) Operating profit 81,172 217,626 ---------- ---------- Finance income 1,088 1,167 Finance costs (4,402) (4,389) Profit before taxation 77,858 214,404 ---------- ---------- Income tax expense (22,044) (55,945) ---------- ---------- Profit for the year 55,814 158,459 ---------- ---------- Other comprehensive income - - Total comprehensive income for the year 55,814 158,459 Owners of the Company 55,814 158,459 Earnings per share - Basic and diluted (RMB) 0.5 1.9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2015
2015 2014 RMB'000 RMB'000 ASSETS NON-CURRENT ASSETS Property, plant and equipment 58,896 62,900 Land use rights 6,153 6,320 Deferred tax asset 13,075 - 78,124 69,220 --------- --------- CURRENT ASSETS Inventories 40,886 61,390 Trade receivables 143,417 176,240 Other receivables, deposit and prepayments 71,612 9,386 Cash and cash equivalents 299,095 333,901 555,010 580,917 --------- --------- TOTAL ASSETS 633,134 650,137 --------- --------- EQUITY AND LIABILITIES EQUITY Share capital 74,913 74,913 Share premium 15,411 15,411 Other reserves 82,342 82,342 Retained earnings 368,851 346,029 TOTAL EQUITY ATTRIBUTABLE TO 541,517 518,695 --------- OWNERS OF THE COMPANY CURRENT LIABILITIES Trade payables 3,412 17,973 Other payables and accruals 28,188 33,800 Interest-bearing bank borrowings 52,600 67,600 Current tax payable 7,417 12,069 TOTAL LIABILITIES 91,617 131,442 --------- --------- TOTAL EQUITY AND LIABILITIES 633,134 650,137
The consolidated financial statements were approved and authorised for issue by the Board of Directors on 29 June 2016 and signed on their behalf by
Weigang Chen, Executive Chairman
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEARED 31 DECEMBER 2015
Share Share Statutory Retained Merger Other Warrant Capital Premium Reserve Earnings Reserve Reserve Reserve Total RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 -------------------------- --------- --------- ---------- ---------- --------- --------- --------- ----------- As at 1 January 2014 6 - 49,005 236,053 87,597 - - 372,661 Total comprehensive income for the year - - - 158,459 - - - 158,459 Capitalisation of shareholder's loan 73,157 - - - (73,157) - - - Shares issued on admission to trading on AIM 1,750 22,864 - - - - - 24,614 Share issue costs - (7,453) (7,453) Transfer to statutory reserve - - 16,271 (16,271) - - - - Share based payment - - - - - 1,500 - 1,500 Warrants issued - - - - - - 1,126 1,126 Dividends - - - (32,212) - - - (32,212) As at 31 December 2014 74,913 15,411 65,276 346,029 14,440 1,500 1,126 518,695 As at 1 January 2015 74,913 15,411 65,276 346,029 14,440 1,500 1,126 518,695 Total comprehensive income for the year - - - 55,814 - - - 55,814 Dividends - - - (32,992) - - - (32,992) As at 31 December 2015 74,913 15,411 65,276 368,851 14,440 1,500 1,126 541,517 ========= ========= ========== ========== ========= ========= ========= ===========
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEARED 31 DECEMBER 2015
2015 2014 RMB'000 RMB'000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 77,858 214,404 Adjustments for:- Amortisation of land use rights 167 182 Impairment loss on trade receivables 52,300 - Trade receivables written off 9,216 11,174 Depreciation of property, plant and equipment 4,024 2,706 Interest expense 4,402 4,389 Property, plant and equipment 86 - written off Share based payment - 1,500 Warrant costs - 1,126 Gain on foreign exchange (2,016) (723) Interest income (1,088) (1,167) Operating profit before working capital changes 144,949 233,591 ----------- ---------- Decrease/(increase) in inventories 20,504 (23,726) (Increase) in trade and other receivables (18,974) (39,134) (Decrease)/increase in trade and other payables (34,015) 4,448
CASH FLOWS FROM OPERATIONS 112,464 175,179 Interest paid (4,402) (4,389) Income tax paid (39,771) (58,837) NET CASH GENERATED FROM OPERATING ACTIVITIES 68,291 111,953 ----------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (106) (22,170) Deposit of land use right (69,929) - Interest received 1,088 1,167 NET CASH USED IN INVESTING ACTIVITIES (68,947) (21,003) CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from share issuance - 17,161 Dividends paid (27,762) (32,212) Advanced from a shareholder 8,612 - Repayment of interest-bearing (15,000) - bank borrowings NET CASH USED IN FINANCING ACTIVITIES (34,150) (15,051) ----------- ---------- NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (34,806) 75,899 ----------- ---------- CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL YEAR 333,901 258,002 ----------- ---------- CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 299,095 333,901 ----------- ----------
NOTES TO THE FINANCIAL STATEMENTS
1. General Information
Jiasen International Holdings Limited (the "Company" or "Jiasen") was incorporated on 31 October 2012 and is domiciled in the British Virgin Islands. The Company's registered office is Commerce House, Wickhams Cay 1, P. O. Box 3140, Road Town, Tortola, VG1110, British Virgin Islands. Jiasen is a limited liability company which is admitted to the United Kingdom Alternative Investment Market.
Jiasen was established as an investment holding company for two wholly owned subsidiaries, Jiasen Holdings (HK) Company Limited ("Jiasen HK") and Quanzhou Jiasen Wood Co., Ltd. ("Jiasen PRC"), (together, the "Group").
The main activity of the Company and Jiasen HK is that of an investment holding company. Jiasen PRC is principally engaged in the business of design, manufacturing and wholesalers of high quality wooden doors and home furnishings. The principal place of business of the Group is in the People's Republic of China ("PRC"). Amounts are reported in RMB thousands, unless otherwise stated.
2. Basis of Preparation
The Consolidated financial statements of the Group are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with International Financial Reporting Standards ("IFRS").
The consolidated financial statements incorporate the financial information of the Company and its subsidiaries. A subsidiary is an entity (including special purpose entities) over which the Group has the power to govern the financial operating policies, generally accompanied by a shareholding giving rise to the majority of the voting rights, so as to obtain benefits from its activities.
A subsidiary is consolidated from the date on which control is transferred to the Group up to the effective date on which control ceases, as appropriate.
The consolidated financial statements present the results of the Company and its subsidiaries (the "Group") as if they formed a single entity.
Intra-group balances and transactions and any income and expenses arising from intra-group transactions are eliminated on consolidation. Unrealised gains and losses arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group's interest in the investee.
The financial information of the subsidiaries is prepared for the same reporting period as that of the Group, using consistent accounting policies.
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.
3. Earnings per Share
Basic and diluted earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Ordinary shares in issue during the period.
2015 2014 Profit attributable to equity holders (RMB'000) 55,814 158,459 Weighted average number of shares 121,656,361 82,606,377 Basic and diluted earnings per share (RMB) 0.5 1.9
Although the Group reconstruction did not become unconditional until 4 March 2014, the consolidated financial statements are presented as if the Group structure has always been in place, including a share split effected by the Company on 26 May 2014 by which each of its Ordinary shares, with a par value of US$ 1.00 per share, was split into 10 Ordinary shares, with a par value of US$ 0.10 per share.
No adjustment has been made to the basic earnings per share in respect of a dilution as the impact of the warrants outstanding had an anti-dilutive effect on the basic earnings per share.
4. Notice of AGM and Posting of Accounts
The annual general meeting ("AGM") will be held at the conference room of Jiasen International Holdings Limited, 7th floor, Nanlian Industrial Park, Guanqiao Town, Nan'an City, Fujian Province, PRC 25 July 2016 at 16:30 pm (BST + 07.00).
The full version of the report and accounts for the year ended 31 December 2015 will be available shortly the Company's website http://www.jsih.net/ and notification of posting of the accounts, together with the Notice of AGM and the Form of Proxy, will shortly be sent to all shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEAFAUFMSEEM
(END) Dow Jones Newswires
June 30, 2016 02:00 ET (06:00 GMT)
1 Year Jiasen Int. Chart |
1 Month Jiasen Int. Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions