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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Kada Tech | LSE:KADA | London | Ordinary Share | BMG8310Y1066 | ORD USD0.10 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.505 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMKADA
RNS Number : 2557N
Kada Technology Holdings
27 September 2012
Press Release 27 September 2012
Kada Technology Holdings Limited
("Kada" or the "Group")
Interim Results
Kada Technology Holdings Limited (AIM:KADA), the China-based provider of components and devices for the IT industry and consumer electronics, today announces its unaudited results for the six months ended 30 June 2012.
Highlights
Kada successfully joined AIM on 5 July 2012 -- Revenues increased by 51% to US$64.4 million (H1 2011: US$42.7 -- million) Profit before tax rose by 7% to US$8.0 million (H1 2011: -- US$7.4 million) Net cash US$1.5 million at 30 June 2012 (30 June 2011: US$5.8 -- million) Earnings per share of US$0.11 (H1 2011: US$0.18) -- Net assets US$26.4 million at 30 June 2012 (30 June 2011: -- US$33.9 million)
Commenting on the Interim Results, He Xuebo, Chief Executive Officer of Kada, said: "I am pleased that Kada was able to maintain growth momentum in both revenue and profit for H1 2012 as we continue to expand our customer base. Despite the slow down in export-driven demand, due largely to the macro-economic turmoil in the USA and Europe, Kada continues to grow its business thanks to the resilience of our domestic customers."
- Ends -
For further information:
Kada Technology Holdings Limited Paul He Xuebo, Chief Executive Officer Tel: +44 (0) 20 7398 7719 Lee Kheng Yam, Chief Financial Officer www.kada-ir.com finnCap Limited Geoff Nash / Christopher Raggett Tel: +44 (0) 20 7220 0500 www.finncap.com
Media enquiries:
Abchurch Communications Limited Henry Harrison-Topham / Joanne Shears / Jamie Tel: +44 (0) 20 7398 Hooper 7719 joanne.shears@abchurch-group.com www.abchurch-group.com
Notes to Editors
Kada was founded in 2004 and provides solutions for electronic devices, systems and media platforms (the "Solution Packages Business"). The Group also distributes and sells electronic components and provides technical support (the "Electronic Component Business"). Kada is headquartered in Shenzhen with offices in Hong Kong, Beijing, Shanghai, Zhuzhou and Mianyang in China, as well as Kuala Lumpur in Malaysia.
Kada's Distributorship Division distributes and trades a multitude of electronic components, predominantly Integrated Circuits ("ICs"). Kada sources electronic components from a number of suppliers that are based locally as well as from countries including Taiwan, Hong Kong and the USA. Many of Kada's electronic components are used in the manufacture of consumer electronics, internet terminals and routers as well as communication devices and media players.
The Company's Solutions Business involves the design, development and sale of solutions packages for electronic devices (such as netbooks, Netbox, handheld/tablet PC). Solutions packages include product definition, structural, mechanical, visual and circuitry design, prototype testing, underlying software development, pilot production and production support. Solutions packages are either commissioned by customers or conceptualised in-house. The solutions packages offered by the Company are flexible ranging from designs of motherboard, to the development of a complete electronic device. Kada is currently expanding downstream into the provision and operation of a wireless media solution that incorporate small display terminals, mounted on a taxi's front passenger headrest that disseminates multimedia information and advertising programs for passengers. Taxis on the road will receive uploads of real-time information and data (for example local attractions, history, news highlights, public services information and simple interactive games and animations), via 3G or WiFi network, which are automatically displayed to the taxi passengers. Kada has rolled out the wireless taxi media solution in Mianyang city, Sichuan Province, PRCin late 2011, as a marketing showcase to demonstrate its wireless media technology capability.
For the year ended 31 December 2011, Kada reported audited revenue and profit before tax of US$82.4million and US$13.6 million respectively.
For further information on the Group, please visit Kada's investor relations website at www.kada-ir.com.
Chairman's Statement
On behalf of Kada Technology Holdings, a well established Chinese provider of components and devices for the IT industry and consumer electronics, I am delighted to present our maiden interim results since the Group joined AIM on 5 July 2012.
Overall, the Group's revenue continued to grow and was approximately 51% higher than the corresponding period in 2011. The Electronic Components distributorship business particularly has continued to show strong growth in both revenues and operating profit. The Solution Packages business had been impacted by the seasonal cycle and also by a technological change in which there is a preference to utilise tablet computers over netbooks, which has affected the Group's Printed Circuit Board Assembly ("PCBA") and netbook solutions addressable market. The downstream segment that Kada is entering for its Solution Packages business, including the wireless Media Platform business, requires more time to mature and accordingly the revenue and profit from this division is less than was expected. Nonetheless, the Board is pleased to note that the strong growth in both revenue and operating profit in the Electronic Components distributorship business was more than enough to offset decreasing revenue in the solution packages business. However, as this part of the business operates at a lower margin than the Solutions Packages business, the increase in revenue has not fed through to profit before tax as the Board would have anticipated.
Financial Review
During the six months ended 30 June 2012, the Group recorded a turnover of approximately US$64.4 million representing an increase of 51% as compared to US$42.7 million for the same period last year. Gross profit for the period increased to US$9.2million (H1 2011: US$8.8 million). The results of the Group attributable to the equity shareholders of the Company for the period was a profit of approximately US$7.0 million (H1 2011: US$5.5 million).
During the period under review, revenue from the Electronic Component business increased 92% to US$58.4 million (H1 2011: US$30.5million) as a result of an increase in overall client numbers having a commensurate impact on sales volume. The Electronic Components business generated an operating profit of US$4.2 million for the six months ended 30 June 2012 compared to a slight loss of US$0.3 million for the corresponding period last year. The increase in revenue coupled with better cost control, resulted in improvement in operational profit.
During the period under review, the revenue from the Group's Solution Packages business decreased 49% to US$6.0 million from US$12.2 million recorded as at 30 June 2011. Revenue from the Solution Packages business has been impacted by the seasonal cycle of sales orders from customers, which necessitated postponement of solution packages delivery beyond the first half of 2012. In particular, the Chinese New Year fell in Q1 for Kada resulting in purchasing delay or diversion by customers. Correspondingly, operating profit recorded for the period ended 30 June 2012 was US$3.9 million, 50% lower than US$7.7 million recorded for the same period last year.
Selling and distribution expenses increased to US$0.4 million from US$0.2 million which is consistent with the growth in turnover. Administrative expenses dropped slightly to US$1.0 million (H1 2011: US$1.1 million) through continued effective cost control.
The Group's cash balance decreased slightly by 1% to US$9.2 million from 31 December 2011, despite a dividend payment of US$4.5 million in the first half of 2012, prior to admission to AIM. Net cash was US$1.5 million at 30 June 2012, a decrease of 44% from US$2.7 million at 31 December 2011, due to increased drawdown of a banking facility.
Outlook
Following the GBP1.3 million (gross) fundraising completed in July 2012, Kada has maintained prudent cost controls and allocation of resources as the Group pursues more business opportunities in both the Electronic Components distributorship and Solution Packages businesses.
The Board believes that the Group's current commercial partnerships will continue to develop strongly in the area of distributorship. Existing distributorship agreements are expected to be renewed on a rolling contract basis, while Kada seeks to secure more electronic component distributorship deals. Negotiations to secure sales orders for the Solution Packages business, particularly the newer version of PC-based solutions, will be diligently pursued, despite the challenge posed by technology trend towards tablet devices. The Group continues to allocate R&D resources to the development of other solutions, particularly media technology solutions, to reduce its dependence on PC-based solutions such as the netbook and PCBA. The Group's taxi media business which was rolled out in Mianyang City, China, was a product showcase and contribution is expected to remain small for the rest of the financial year. Kada continues to prudently evaluate business propositions that would require investment of resources and capital in the area of collaboration with potential partners.
Ivor Shrago
Chairman
27 September 2012
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2012
6 months 6 months 12 months ended ended ended 30 Jun 30 Jun 31 Dec 2012 2011 2011 USD'000 USD'000 USD'000 Unaudited Unaudited Audited Revenue 64,417 42,685 82,398 Cost of sales (55,172) (33,912) (63,303) ---------- ---------- ---------- Gross profit 9,245 8,773 19,095 Other income 275 43 483 Selling and distribution expenses (356) (222) (557) Administrative expenses (959) (1,047) (5,188) Finance costs (220) (102) (221) ---------- ---------- ---------- Profit before taxation 7,985 7,445 13,612 Income tax expenses (1,103) (1,978) (3,268) ---------- ---------- ---------- Profit for the period 6,882 5,467 10,344 Other comprehensive income Exchange differences on translation of foreign operations 82 18 77 ---------- ---------- ---------- Total comprehensive income for the period 6,964 5,485 10,421 ========== ========== ========== Attributable to: Equity Shareholders of the Company 6,995 5,485 10,434 Minority Interests (31) - (13) ---------- ---------- ---------- 6,964 5,485 10,421 ========== ========== ========== Earnings per ordinary share Basic 0.11 0.09 0.18
Condensed consolidated statement of financial position
as at 30 June 2012
30 Jun 30 Jun 31 Dec 2012 2011 2011 Unaudited Unaudited Audited USD'000 USD'000 USD'000 ASSETS Non current asset Plant and equipment 184 147 225 Intangible assets 39 51 45 Deferred tax 358 214 345 ---------- ---------- -------- 581 412 615 Current assets Inventories 1,054 1,293 1,449 Other current assets 8 681 - Trade and other receivables 40,970 40,581 37,537 Derivative financial assets - - 163 Cash and cash equivalents 9,235 13,099 9,365 ---------- ---------- -------- 51,267 55,654 48,514 ---------- ---------- -------- Total assets 51,848 56,066 49,129 ========== ========== ======== EQUITY AND LIABILITIES Capital and Reserves Share capital 5,721 -* -* Other reserves (4,388) 1,753 1,333 Statutory and translation reserves 359 103 277 Retained earnings 24,752 32,044 17,839 ---------- ---------- -------- Equity attributable to owners 26,444 33,900 19,449 Minority Interest 19 - 50 ---------- ---------- -------- Total equity 26,463 33,900 19,499 ---------- ---------- -------- Liabilities Non-current Deferred tax liabilities 50 50 50 Borrowings 1,550 1,551 1,320 ---------- ---------- -------- 1,600 1,601 1,370 ---------- ---------- -------- Current Borrowings 6,194 5,713 5,372 Trade and other payables 8,437 12,620 10,239 Corporate income tax payable 9,120 2,232 8,084 Dividends payable 34 - 4,565 ---------- ---------- -------- 23,785 20,565 28,260 ---------- ---------- -------- Total equity and liabilities 51,848 56,066 49,129 ========== ========== ======== *Amount is less than US$1,000
Condensed consolidated statement of cash flow
for the six months ended 30 June 2012
6 months 6 months 12 months ended ended ended 30 Jun 30 Jun 31 Dec 2012 2011 2011 USD'000 USD'000 USD'000 Unaudited Unaudited Audited Profit before income tax 7,985 7,445 13,612 Adjustments for: Interest expenses 220 102 221 Interest income (185) (24) (157) Depreciation of property, plant and equipment 38 20 54 Amortisation of intangible assets 7 6 11 Derivative financial assets 38 - (163) ---------- ---------- ---------- Operating profit before working capital changes 8,103 7,549 13,578 Decrease in inventories 395 156 - Increase in trade and other receivables (3,433) (10,247) (11,352) (Increase)/decrease in other current assets (8) (366) 315 Increase/(decrease) in trade and other payables (1,802) 4,690 2,309 ---------- ---------- ---------- Cash generated from operations 3,255 1,782 4,850 Interest received 185 24 157 Tax paid - (146) (555) ---------- ---------- ---------- Net cash generated from operating activities 3,440 1,660 4,452 Investing activities Purchase of property, plant and equipment (2) (38) (146) Purchase of intangible assets (1) - (2) Proceeds from sale of derivative 125 - - financial assets Minority interest shares - - 63 ---------- ---------- ---------- Net cash from/(used in) investing activities 122 (38) (85) Financing activities Dividend paid (4,531) - (5,435) Interest paid (220) (102) (221) Borrowings 1,052 1,907 1,335 Share redemption - - (420) ---------- ---------- ---------- Net cash inflow/(outflow) from financing activities (3,699) 1,805 (4,741) Net (decrease)/increase in cash and cash equivalents (137) 3,427 (374) Cash and cash equivalents at beginning of period 9,365 9,663 9,663 Effect of foreign exchange rate changes 7 (81) 76 ---------- ---------- ---------- Cash and cash equivalents at end of period 9,235 13,009 9,365 ========== ========== ==========
Condensed consolidated statement of changes in equity
for the period ended 30 June 2012
Share Translation Statutory Retained capital Other reserves reserve reserve earnings Total equity USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 At 1 January 2011 - 1,753 36 47 26,579 28,415 Profit for the period - - - - 5,467 5,467 Other comprehensive income - - 18 - - 18 Transfer to statutory reserve - - - 2 (2) - -------- -------------- ----------- --------- --------- ------------ At 30 June 2011 1,753 54 49 32,044 33,900 Redemption - (420) - - - (420) Profit for the period - - - - (4,090) (4,090) Other comprehensive income - - 59 - - 59 Transfer to statutory reserve - - - 115 (115) - Dividends - - - - (10,000) (10,000) -------- -------------- ----------- --------- --------- ------------ At 31 December 2011 - 1,333 113 164 17,839 19,449 Profit for the period - - - - 6,913 6,913 Other comprehensive income - - 82 - - 82 Reorganisation 5,721 (5,721) - - - - -------- -------------- ----------- --------- --------- ------------ At 30 June 2012 5,721 (4,388) 195 164 24,752 26,444 -------- -------------- ----------- --------- --------- ------------ Attributable to Minority Interest Shares Retained Total minority in subsidiary earnings interest USD'000 USD'000 USD'000 Balance at 1 July - - 2011 - Shares in Sichuan Xianfan 63 - 63 Losses for the period - (13) (13) -------------- --------- -------------- Balance at 30 December 2011 63 (13) 50 Losses for the period - (31) (31) Balance at 30 June 2012 63 (44) 19 ============== ========= ==============
Notes to the condensed consolidated financial statement
30 June 2012
1. General information
Kada is a company incorporated under the law of Bermuda. The address of the registered office is Claredon House, 2 Church Street, Hamilton, HM11, Bermuda.
The principal activity of Kada and its subsidiaries (the "Group") is the development and provision of solutions for electronic devices, systems and media platforms. The Group also distributes and sells electronic components for which it provides technical support. Recently, the Group has ventured into the provision and operation of its own bespoke media platform. The principal place of business of the Group's operation is at Room 505, Building C, Huashan Science and Technology Building, Langshan Road, Nanshan District, Shenzhen.
These condensed financial statements are presented in the nearest thousands and US dollars, the presentation currency of the group. The functional currencies of the principal subsidiaries are Renminbi ("RMB") of the PRC and Hong Kong Dollar ("HKD").
The exchange rate used is USD 1: RMB 6.3089 and USD 1: HKD 7.757.
2. Basis of preparationand accounting policies
The Group's interim financial information for the six months ended 30 June 2012, including comparative financial information, has been prepared on the basis of the accounting policies set out in the last audited consolidated financial statements, which are based upon the International Financial Reporting Standards ("IFRS") and interpretations as adopted by the EU. This interim report has been prepared in accordance with the AIM Rules for Companies and not in accordance with IAS34 'Interim financial reporting', as issued by the International Accounting Standards Board and adopted by the European Union.
These condensed financial statements have been prepared under the historical cost basis except for certain financial instruments. Historical cost is generally based on the fair value of the consideration given in exchange of assets.
The Group's interim results for the six month period ended 30 June 2012 are unaudited and were approved by the Board of Directors on 21 September 2012.
The Group has been formed piecemeal since April 2008 when Yoho King Limited acquired all the ordinary shares of Kada Technical Innovation Company Limited. The Company acquired all the shares in Yoho King Limited on 25 June 2012, pursuant to a re-organisation exercise of the corporate structure of the Group that was undertaken as part of the initial public offering of the Company.
The Group is regarded as a continuing entity under common control during these periods until 30 June 2012. Accordingly the unaudited interim financial information for the six months ended 30 June 2012 have been presented on the basis of merger accounting as if the Group had been in existence throughout the reporting period.
The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may subsequently differ from those estimates.
In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the audited consolidated financial statements for the year ended 31 December 2011.
3. Segmental analysis Solution Electronic package Component Total USD'000 USD'000 USD'000 6 months ended 30 June 2012 Revenue 5,984 58,433 64,417 ========= =========== ======== Segment results 3,856 4,237 8,093 ========= =========== ======== Unallocated loss (108) Profit before income tax 7,985 Year ended 31 December 2011 Revenue 16,143 66,255 82,398 ========= =========== ======== Segment results 10,405 3,970 14,375 ========= =========== ======== Unallocated loss (763) Profit before income tax 13,612 6 months ended 30 June 2011 Revenue 12,185 30,500 42,685 ========= =========== ======== Segment results 7,705 (260) 7,445 ========= =========== ======== Unallocated loss - Profit before income tax 7,445 4. Taxation
The group operates in Hong Kong and the PRC and disclosed the corporate income tax rate applicable in the jurisdiction in which the principal subsidiary domiciled which is in Hong Kong.
Kada is regarded as resident for the tax purposes in Bermuda. There are no applicable taxes in Bermuda for the Company.
The taxation charge is based upon the expected effective rate for the period ended 30 June 2012.
5. Earnings per share
Historic, basic and diluted earnings per share information is not meaningful given there was only 1 share in issue for Kada Technology Holdings Limited to 31 December 2011 and it was converted to 10 shares on 21 June 2012.
Pro-forma earnings per share information based upon the 10 shares in issue plus the 57,210,740 reorganisation shares issued and 746,090 new Subscription is as follows:
6 months 6 months Year to to to 30 Jun 30 Jun 31 Dec 2012 2011 2011 USD USD USD Earnings per share: 0.11 0.09 0.18 ===== ===== =====
The above calculated on the profit for the financial periods attributable to the Equity shareholders of Kada Technology and assumes the 57,956,840 Ordinary Shares of US$0.10 each existed throughout the period ended 30 June 2012 and 30 June 2011, and year ended 31 December 2011.
6. Borrowings
During the period, the Group obtained an additional new trust receipt loan in the amount of USD 1.05 million from its existing bank, for the purpose of trade financing. The loan bears interest at fixed rates and is repayable within 90 days.
7. Share capital
The issued share capital of the company as at 30 June 2012 is USD 5,721,740 fully paid.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All shares rank equally with regards to the company's residual assets.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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