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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Naibu Global | LSE:NBU | London | Ordinary Share | JE00B648L531 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 11.50 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jan 2020 to Jan 2025
TIDMNBU
RNS Number : 1604F
Naibu Global International Co PLC
21 May 2013
Press Release 21 May 2013
Naibu Global International Company Plc
("Naibu" or the "Group")
Unaudited Preliminary Results
Naibu Global International Company Plc(AIM:NBU), a leading Chinese manufacturer and supplier of branded sportswear, today announces its unaudited preliminary results for the year ended 31 December 2012.
Highlights
Hot Features
Premium
- Revenues increased by 12.4% to RMB 1,677 million (approximately
GBP177 million) (2011: RMB 1,492 million)
- Profit before tax rose by 4.3% to RMB 360 million (approximately
GBP38 million) (2011: RMB 345 million)
- Earnings per share for the year of RMB 4.94 (2011: RMB 5.67)
- Maiden proposed final dividend of 4 pence per share declared
(2011: Nil). Scrip dividend alternative to shareholders
who wish to reinvest
- Operating margin reduced from 23.1% to 21.5% due to one
off IPO costs (excluding costs the operating margin was
22.1%)
- Strong Group balance sheet with cash position of RMB 453
million (2011: 286.8 million). The Group has no outstanding
bank loans or overdue debt
- Increased its Naibu-branded product range to 414 items in
2012 (2011: 325)
- 170 new Naibu-branded stores opened during 2012, an increase
of 5.9%, totalling 3,040 stores (2011: 2,870 stores)
- Investment in R&D programme increased by 39.3% to RMB 27.3million
in 2012 (2011: RMB 19.6 million). R&D expenditure accounts
for 1.6% of turnover (2011: 1.3%)
The illustrative exchange rate as at 17 May 2013 is 1 GBP : 9.47 RMB.
Commenting on the preliminary results, Huoyan Lin, Executive Chairman of Naibu, said: "The Board is pleased to have successfully joined AIM in April 2012 and to have achieved positive growth in terms of both revenue and profits before tax. Naibu's investment during the period in R&D, as well as advertising, sales and distribution, will support the ongoing focus on driving sales and building the brand as an affordable leading fashion sportswear brand. The Board also continues to strive to maintain the solid margins that have been achieved to date. The Group's focus remains on second and third tier cities, and Naibu has benefited from the ongoing urbanisation that is occurring in China.
"The Group is pleased to be announcing its maiden final dividend of 4 pence per share, a strong indication of the Board's confidence in the future growth potential for Naibu given its robust position in this growing market."
- Ends -
For further information:
Naibu Global International Company
Plc
Huoyan Lin, Executive Chairman Tel: +44 (0) 20 7398
7702
Li Zhen, Chief Financial Officer www.naibu.com
Daniel Stewart & Company Plc Tel: +44 (0) 20 7776
6550
Paul Shackleton / Martin Lampshire www.danielstewart.co.uk
Media enquiries:
Abchurch
Henry Harrison-Topham / Joanne Shears Tel: +44 (0) 20 7398
7702
henry.ht@abchurch-group.com www.abchurch-group.com
Chairman's Statement
2012 was a very successful and exciting year for Naibu. Against the background of a year of slowing domestic and international economic growth and a challenging industry environment, Naibu continued to pursue its strategy achieving excellent sales growth and above average profitability. In the period Group revenues increased by 12.4% to RMB 1,677 million, whilst operating profit grew by 4.3 % to a record high of RMB 360 million, and the Group realised a net profit margin of 15.8 %. Naibu's continued investment programme in R&D and a sharpened focus on advertising, sales and distribution, together with the costs related to the Group's IPO, had a slight impact on the operating margin for the year.
The successful Admission to AIM in April 2012 was a historical milestone for Naibu raising awareness of the Group's brand internationally and the standing and attractiveness of the Naibu in China. Despite intense competition among sportswear industry players in 2012, Naibu has continued to reinforce its unique brand positioning strategy and to differentiate the Group from it peers by positioning Naibu as an affordable leading fashion sportswear brand. The Group has continued to focus its sales and marketing efforts on China's second and third-tier cities and has benefited from China's continued drive towards urbanisation, which is the fundamental driver of growth for Naibu's industry.
The Board plans to continue to pursue the Group's growth strategy in 2013 to create brand value. Naibu has had a good start to 2013, and the Board is confident that this will be another productive year. Based on the market's recovery, the increased strength of the Group's brand and its powerful distribution network, the Board aims to increase sales in 2013 and to maintain the solid margins achieved in 2012.
For Naibu's distribution network, the Group will continue to focus on the development of retail outlets in second and third-tier cities, while optimising and adjusting the Group's distribution resources.
With regards to Naibu's manufacturing and production, the Group will continue to expand its own production capacity as a percentage of total production through the building of new production plants and facilities, in order to respond more flexibly to market changes and to be able to control its production process more effectively. At the moment, the Group leases a total of eight production lines, four each in Jinjiang and Shishi, both in Fujian Province. As the production lines in Jinjiang are relatively old, and the lease for the Shishi plant is due to expire in late 2013, in order to ensure continued smooth production, the Group is negotiating to acquire a plant in Quangang this year where it will establish eight production lines: this will comprise six new lines with the other two being transferred from Shishi. The existing four lines in Jinjiang will be retired and the remaining two production lines in Shishi will be transferred to Jinjiang. The new production facility in Quangang is expected to commence operations in Q4 2013, and therefore the Group anticipates it will be operating ten production lines in total by the end of the current financial year. The withdrawal of the Shishi plant and the commencement of operations at the Quangang plant will be concurrent and the Group does not anticipate any negative impact on its manufacturing capability in 2013.The plants in Jinjiang and Quangang are approximately 50km apart and both form part of Quanzhou city.
In addition, Naibu is continuing with its growth strategy of investing in the central and western areas of China, which has taken longer than the Board anticipated owing to the recent change of political leadership in China. Preliminary negotiations with local government officials in Sichuan Province have now completed. The directors expect that the Company will purchase the land to build a new factory with twelve production lines, which they anticipate will be in operation by the end of 2014.
Naibu is determined to strengthen its design and product development capacity and capability, as stronger brand identity and innovation capabilities will make the Group's products more desirable to consumers, which will in turn generate higher sales revenue for Naibu's retailers and boost their confidence in the Group.
The Group continues to improve management systems and develop a strong corporate culture to attract talented staff. Naibu plans to offer additional staff training beyond the programmes the Group already operates and promotion opportunities that will help Naibu's employees develop professionally as the business expands.
I would like to thank my fellow Board members and all of our staff for their dedication, commitment and for making valuable contributions to Naibu.
On behalf of the Board, I would like to express my heartfelt gratitude to our shareholders for their continued support and trust they place in us. Given the continued strength and performance of our business, I am delighted to announce that the Group proposes to pay a maiden final dividend of 4 pence per share to our shareholders. This dividend reflects the Board's positive outlook for the future of the Group and it is intended that it will mark the start of a progressive dividend policy going forward. The dividend is subject to shareholder approval and the appropriate approvals of the Chinese authorities. The final dividend of 4 pence per share is expected be paid on 19 September 2013 to shareholders on the register at the close of business on Friday 7 August 2013. The shares will trade ex-dividend on 7 August 2013 following approval at the AGM. The Company is proposing to operate a Scrip Dividend Alternative. The Scrip Dividend Alternative provides shareholders with an opportunity to invest the whole of, or part of, the cash dividend they receive to buy further shares in the Company without incurring stamp duty or dealing expenses.
The Scrip reference price is calculated by taking the average of the middle market quotations for the Company's Ordinary shares for the day on which they are quoted ex-dividend and the four subsequent business days. The Scrip Dividend Alternative will be subject to shareholder approval at the AGM.
The Board continues to strive to take effective actions and measures to ensure the steady development of the Group's business, working closely with our supply chain partners and distributors in order to create value for our stakeholders. Naibu is in a strong position in the market and the Board remains confident of future growth and positive about the prospects for Naibu.
Huoyan Lin
Executive Chairman
21 May 2013
Operational Review
Financials
2012 produced another set of solidresults for Naibu, with pre-tax profits rising 4.3% to RMB 360 million on sales up 12.4% to RMB 1,677 million.
The strong increase reflected growing popularity and rising demand forbranded leisurewear, sportswear and equipment in Naibu's target Chinese market. This consumer demand was met by the Group over the course of the year with a broadening of its product range through its continued investment programme in research and development ("R&D") and a sharpened focus on advertising, sales and distribution, partly in new locations. This investment together with costs related to the Group's AIM IPO had a slight impact on the operating margin for the year which fell from 23.1% to 21.5%. Excluding IPO costs, the margin would have been 22.1%. Earnings per share for the year wereRMB 4.94 (2011: RMB 5.42) and the Group's cash position at the year-end was robust standing at RMB 453 million (2011: RMB 286.8 million).
Product range and sales
During the year, Naibu made significant progress in terms of brand positioning, product design and marketing.
Throughout the year, the Group continued with the manufacture of Naibu-branded leisure and sports shoes, which were sold through its nationwide Naibu outlets alongside Naibu-branded leisurewear, sportswear, sports accessories and equipment sourced from original equipment manufacturer ("OEM") suppliers. In all, the Group offered a total of 414 Naibu-branded products in 2012 (2011: 325) including 150 types of shoes, 212 types of clothing, as well as 52 types of accessories and sports equipment. Salesand marketing of these items remained focused on mass-market buyers, especially those young, innovative consumers aged between 12 and 35, targeted by three separate product lines labeled "Vital Campus", "Urban Business" and "Holiday Leisure".
Shoes continued to account for most of the Group's sales, representing 54.8% of total revenue. Sales of shoes amounted to RMB 919 million, up 10.8% from the previous year. Increased sales price per unit, rather than sales volume, accounted for over two thirds of the total sales increase.
Strong revenue growth was also achieved from the sale of clothes and accessories, which together accounted for the remaining 45.2% of total revenues, up 0.8% from 44.4% during 2011. This was achieved primarily through increasing the number of Naibu-branded stores during the year from 2,870 stores to 3,040 stores in 2012, an increase of 5.9%, increasing display area, and focusing on higher-margin products. Sales also benefited from the introduction of higher-quality in-store sales teams. The Group, has continued to provide training to staff at Naibu branded stores on how to constantly improve services, and to exhibit different series of accessories and has also continued to provide rigorous guidance to in-store sales teams. In addition, the increase in unit price for each category contributed significantly to revenue growth for the Group.
Research and development
The Group maintains a product research and development ("R&D") team of 93 employees at its Shishiand Jinjiang factory, who are responsible for the design of all shoes and clothing and are supervised by Naibu's founder and Executive Chairman, Mr. Huoyan Lin. The R&D team comprises three divisions respectively covering product design, product development and technology development. It creates two seasonal collections each year ("Spring and Summer" and "Autumn and Winter") which during 2012 included 414 new product designs successfully launched at two seasonal fairs. Naibu's distributors remained crucial to the R&D process during the year, providing market feedback and opinions on forward sales potential. The department plans to launch over 530 new Naibu products in 2013.
Naibu is determined to strengthen its design and product development capabilities in order to develop new products and improve quality, which the Group believes is essential to adapt to changing consumer preferences.
Manufacturing
Naibu's production centers are located in Jinjiang and Shishi, both in Fujian Province, where the Group continues to lease two purpose-built production facilities operating a total of eight shoe production lines - four at each plant and where workers are engaged in stamping, sewing and stitching, and moulding. Both plants ran without interruptionthroughout the year to meet strong demand for the Group's products. This was achieved through the optimisation of production support systems, the improvement of equipment, and enhancing production efficiencies.
At the year-end, the Group employed 1,949 production staff, similar to the level for 2011. Approximately two thirds of the shoes sold and distributed by the Group during the year wereproduced at the manufacturing plants. The remaining one third of shoes delivered, and all the Group's clothes and accessories were sourced from OEM suppliers.
In order to meet the increased production needs of the Group, Naibu is planning to make changes to its production facilities. This will allow it to respond with greater flexibility to market changes whilst providing the Group with enhanced control over the production process.
At the moment, Naibu leases a total of eight production lines at two sites, four each at Jinjiang and Shishi. These facilities have served the Group well, but the production lines in Jinjiang are relatively old, and the lease for the Shishi plant will expire in late 2013. In order to consolidate and improve production, the Group is in the process of acquiring a plant in Quangang where it will establish eight production lines later this year. Six new production lines will be set up, and two production lines will be transferred from Shishi. The other two production lines in Shishi will be transferred to Jinjiang, and the existing four lines in Jinjiang will be retired. The new production facility in Quangang is expected to commence operation by the end of 2013, and accordingly, the Group anticipates it will be operating ten production lines in total by the end of the year. The closure of the Shishi plant and the commencement of operations at the Quangang plant are expected to be concurrent and the Group does not anticipate any negative impact on its manufacturing capabilities in 2013.
The plants in Jinjiang and Quangang are approximately 50 km apart. Both are part of Quanzhou city. Both the workforce and the R&D team are aware of the planned changes and many of them are willing to relocate to the new facility in Quangang. The Group does not anticipate any difficulty in recruiting additional staff required for Quanzhou due to the availability of skilled labour in Quangang.
Naibu will also continue with its growth strategy of investing in the central and western areas of China. Whilst this has taken slightly longer than anticipated due to the recent change in political leadership in China, preliminary negotiations with local government officials in Sichuan Province have now been completed and the Group plans to purchase the land to build a new factory with 12 production lines before the end of the year, and which the Board anticipates will be fully operational by the end of 2014. Sichuan province itself is a large and growing market, with Chongqing and Chengdu being two of the largest and fastest growing cities in China. It is also the geographical and economic centre for the distribution of products through western China.
Sales and distribution
The Group continues to operate its Marketing and Sales Centre in Fuzhou, with more than 60 staff responsible for product promotion and sales. Six Regional Sales Managers were in charge of individual geographic areas across Naibu's established Chinese distribution network, communicating regularly with key customers, and monitoring consumer trends and competitor performance.
In 2012, Northern, Eastern and Southern China remained Naibu's key markets with total revenues from the three regions accounting for 66.7% and 67.0% during the years 2011 and 2012 respectively. However, the Group will continue to strengthen its sales in Central and Western China, as the rapid growth in disposable income in these regions will provide Naibu with strong sales potential in the near future.
All of the Group's sales were made through distribution agreements with 25 independent corporate and individual retail distributors across China who, at 31 December 2012, operated 3,040 Naibu-branded stores and sales outlets, in 21 provinces and three municipalities. This represented an increase of 170 outlets over the number at the end of 2011, most of them in third tier cities in China. Some stores were directly owned by the distributors, with most of the others owned by their sub-distributors some of whom also operated sales outlets in department stores and supermarkets.
To protect Naibu's brand image and maintain high standards of service quality, the Group continues to provide retail distributors with guidance on how products should be best presented and marketed. New store locations continued to be selected jointly by distributors and the Group, and the selections are based on market research, estimated costs and local sales potential.
Marketing
Naibu continued to invest significantly in brand marketing and product promotion during the year, with a heavy emphasis on advertising, spending RMB 29.5 million. In addition, the marketing function was supported by "front-line" information on consumer and competitor trends supplied by the Group's team of regional sales managers.
In 2012, to commemorate the Group's Admission to AIM, the Group's R&D team launched five new styles of footwear inspired by British design. Though production levels are still relatively low, the new products have been well received by Naibu's customers. In addition to increasing sales and enhancing Naibu's brand image, these products will help create favorable conditions for the future international expansion of Naibu's brand.
Management and staff
As at 31 December 2012, Naibu employed a total of 2,310 staff, of these about 2,220were employed at the Group's production facilities in Jinjiang and Shishi, with the remainder employed at the Group's headquarters in Fuzhou. With the closure of Shishi and the opening of Quangang, the Group anticipates that the vast majority of its staff will transfer to the new site. Any additional staffing needs will be sourced locally where there is a good supply of skilled labour.
Staff turnover remained low, reflecting relatively high salary and welfare levels, a good Group culture and progressive working conditions. As a listed company, the Group also recruited more experienced management and skilled personnel, to improve management.
Financial review
Key financials
2012 (RMB) 2011 (RMB)
-------------- --------------
Revenue 1.677 billion 1.492 billion
Profit before tax 360 million 345 million
Earnings per share (basic) 4.94 5.67
Cash generated from operations 147 million 153 million
Proposed final dividend 4 pence Nil
per share
Revenue
Naibu's revenue increased by 12.4% during the year, rising to a record RMB 1.677 billion (approximately GBP177 million) thanks to increases in unit prices, a successful broadening of Naibu's product range and a steady expansion of the Group's distribution network.
In 2012, revenue derived from Naibu's higher margin branded clothing and accessories linescontinued to increase as a proportion of total sales.
While Sales in the Group's principal markets of North, East and South China accounted for 67.0% of total revenues in 2012, a slight increased from 66.7% in 2011, the Group continues to strengthen and build its distribution channels in North West and Central China.
Category Year to % of Year to % of %
31 December turnover 31 December turnover increase
2012 2011
(RMB, 000) (RMB, 000)
------------- ---------- ------------- ---------- ----------
Shoes 919,271 54.8% 829,546 55.6% 10.8%
Clothing 706,457 42.1% 622,811 41.8% 13.4%
Accessories 50,885 3.1% 39,288 2.6% 29.5%
------------- ---------- ------------- ---------- ----------
Total 1,676,613 100.0% 1,491,645 100.00% 12.4%
------------- ---------- ------------- ---------- ----------
Area Year to 31 December Year to 31 December % change
2012 2011
---------
RMB,000 % of RMB,000 % of turnover
turnover
---------- ---------- ---------- -------------- ---------
North China 447,534 26.7% 396,412 26.6% 12.9%
East China 390,076 23.3% 343,235 23.0% 13.6%
South
China 285,298 17.0% 254,825 17.1% 12.0%
Central China 195,537 11.7% 176,809 11.9% 10.6%
North-West
China 151,890 9.0% 136,127 9.1% 11.6%
South-West
China 206,278 12.3% 184,237 12.4% 12.0%
---------- ---------- ---------- -------------- ---------
Total 1,676,613 100% 1,491,645 100.0% 12.4%
---------- ---------- ---------- -------------- ---------
Costs and expenses
Operating costs and expenses increased by 14.9% during the year andas a percentage of turnover rose by 1.7%. This is in line with increased levels of manufacturing, distribution and sales and includesvarious expenses incurred during the IPO. The IPO and post-IPO related expenses recorded for the year wereabout RMB 9.6 million. Excluding these IPO related expenses, operating costs and expenses increased by 14.1%, or 1.1% as a percentage of turnover.
Advertising and marketing expenses as a percentage of turnover increased by 0.5% during the year as the Group continuedto build brand and market awareness.
Labour as a percentage of turnover increased by 0.3% in the year, primarily as a result of the appointment of experienced directors and management to the Board following the Company's IPO.
The Group continued with its programme of investment in R&D, spending RMB 27.3 million in the year, an increase of 39.3% from RMB 19.6 million in 2011, with R&D expenditure accounting for 1.6% of Group turnover (2011: 1.3%).
Year to 31 December 2012 Year to 31 December % change
2011
Operating Cost % sales Operating % sales
(RMB,000) cost Cost (RMB,000) cost
Group Manufacturing (Shoes)
Raw material 304,096 25.2% 278,007 26.0% 9.4%
Direct Wages 97,483 8.1% 82,951 7.8% 17.5%
Indirect costs 45,943 3.8% 33,256 3.0% 38.2%
Subtotal 447,522 37.1% 394,214 36.9% 13.5%
OEM Supplies
Shoes 230,400 19.0% 211,568 19.8% 8.9%
Clothing 494,800 41.0% 437,407 40.9% 13.1%
Accessories 34,502 2.9% 26,912 2.5% 28.2%
Subtotal 759,702 62.9% 675,887 63.2% 12.4%
----------------- -------- ---------------- -------- ---------
Total 1,207,224 100.0% 1,070,101 100.0% 12.8%
----------------- -------- ---------------- -------- ---------
Year ended 31 December
2012 (%) 2011 (%) Change (%)
Advertising expenditures
as proportion of
turnover 1.8% 1.3% 0.5%
Labor cost as proportion
of turnover 6.2% 5.9% 0.3%
R&D expenditure as
proportion of turnover 1.6% 1.3% 0.3%
Results for the year
While the overall gross profit margin fell slightly from 28.3% to 28.0% during 2012, the gross profit margin for clothing and accessories increased from 29.8% to 30.0% and 31.5% to32.2%, respectively compared with the previous year. The gross profit margin for shoes fellslightly by 0.7% during the year, mainly as a result of the increasedcost of raw materials and the R&D costs invested in shoes development.
Category 2012 2011
gross profit gross profit
gross profit gross
margin profit
margin
RMB ,000 % RMB ,000 %
------------- --------------- ------------- ---------
Shoes 241,350 26.3% 223,765 27.0%
Clothing 211,657 30.0% 185,405 29.8%
Accessories 16,382 32.2% 12,375 31.5%
------------- --------------- ------------- ---------
Total 469,389 28.0% 421,545 28.3%
------------- --------------- ------------- ---------
Operating profit rose to RMB 360 million, up 4.3% year-on-year, while the profit before tax margin fell to 21.5% from the previous year's 23.1%, partly due to the increased expenses from being a listed company. Excluding these expenses,the profit before tax margin would be 22.1%. Additionally, advertising campaign costs and the renovation allowance granted to distributors during the year contributed to the increase in operating expenses in 2012.
Net profit after tax reduced by 6.4% to RMB 265 million, compared to RMB 283 million in 2011. This reduction was mainly due to increased income tax expenses of RMB 95 million compared with RMB 62 million in the previous year and is the result of changes in deferred tax liabilities. In 2011, there was a reversal of deferred tax of RMB 25 million which contrasts with an increase in deferred tax provision in 2012 of RMB 2.5 million.
Deferred tax for the Group is a result of the tax treatment for dividend payments. Pursuant to prevailing PRC tax laws and regulations, dividends distributed to a foreign investor by Foreign Invested Enterprises ("FIE") in the PRC aresubject to a withholding tax of 5% to 10%. Deferred tax liabilities arising from such tax rules are recognised to the extent that the management intends to distribute dividends from retained earnings. The PRC corporate rules stipulates that FIE should provide 10% of the current year profit for the reserve fund, and the remaining 90% can be used for distribution to investors. In 2011 and 2012, the deferred tax calculation of Group is based on 10% of the retained earnings which can be distributed to investors. Considering the profit before tax margin is about 22%, the normalised income tax expense level (including current tax and deferred tax) is around 6% of turnover, or about 35% of net profits.
Balance sheet and cash flow
As at 31 December 2012, the total assets of the Group stood at RMB 1,171 million, with current assets amounting to RMB 1,127 million. With total liabilities of RMB 199 million, total shareholders' equity rose to RMB 972 million. The Group had no outstanding bank loans or overdue debt.
The Group's year-end cash and cash equivalents amounted to RMB 453 million increasing by RMB 166 million from RMB 287 million as at 31 December 2011. The increase reflected a net cash inflow of RMB 166 million resulting from improved operating performance and strengthened capital management, and partly from the cash received from the IPO.
Year-ended 31 December
Category 2012 2011 Change
RMB'000 RMB'000 RMB'000
----------- ---------- -----------
Net cash inflow from
operations 146,958 153,192 (6,234)
Net cash outflow from
investments (36,208) (20) (36,188)
-In which: 1)Acquisition
of property, plant
and equipment (17) (20) 3
2) Renovation prepayments
for distributions (36,191) - (36,191)
Net cash inflow from
financing 55,355 19 55,336
In which: 1) Share
issue proceeds, net
of issue costs 54,314 - 54,314
2) Advances from a
director / shareholder 1,041 19 1,022
----------- ---------- -----------
Total 166,105 153,191 12,914
----------- ---------- -----------
With the increase of both sales and the scale in operations during the year, the Group further consolidated its working capital management. The Group continued to monitor inventory levels and maintain a high turnover rate. Although average debtor days increased from 103 to 121 days during the year, which was a result of continuing to support and strengthen Company's partnership with its distributors, this was partly offset by an increase in account payables days. As at the year end, there were no overdue accounts receivable.
Year ended 31 December
2012 2011 Change
----- ------ -------
Accounts receivable
(average debtor
days) 121 103 (18)
Inventory (days) 21 19 (2)
Accounts payable
(days) 47 44 3
Year ended 31 December
Category 2012 2011 Change
------- ------- -------
Asset-liability ratio 17.0% 27.4% -10.4%
Current ratio 589.8% 367.1% 222.7%
Proportion of current assets 96.3% 98.5% -2.2%
Proportion of shareholders'
equity 83.0% 72.6% 10.4%
Tax
During the year, the Group paid income tax at a standard rate of 25%, being the same as2011.
Year ended
31 December
Item 2012 2011 Change
Profit margin before tax 21.5% 23.1% -1.6%
Impact of income tax expense on
net profit margins -5.5% -5.8% 0.3%
Impact of deferred tax on net
profit margins -0.15% 1.7% -1.8%
Net profit margins 15.8% 19.0% -3.2%
The net profit margin for the year was 15.8%, down 3.2% from 19.0% the previous year which was primarily due to the impact of deferred income tax.
Commitments and contingencies
As at 31 December 2012, the Group and its subsidiaries had no external guarantees outstanding nor any form of external supply. The Group is currently not involved in any litigation matters and is not aware of any current or pending litigation issues relating to the Group.
Financial management policy
The Group continues to maintain a prudent approach to financial risk. The directors recognise the value of the UK Corporate Governance Code ("the Code"), and whilst under AIM rules full compliance is not required, the directors believe that the company applies the recommendations insofar as is practicable and appropriate for a public company of its size. Group business is principally conducted in RMB, so the impact of exchange rate risk on Group activities is limited. The Group does not take positions with financial instruments for hedging purposes. The Board does, however, continue to monitor foreign exchange risk, and is prepared to implement prudent risk-reduction measures such as hedging as and when necessary.
Significant investments and acquisitions
During the year, the Group made no major investments and did not dispose of or acquire any significant subsidiaries or businesses. The Group continues to consider opportunities for the acquisition of other brands and to review potential opportunities for cooperation in line with its strategy of expanding the Naibu brand portfolio to realise improved returns for shareholders.
Dividend
To reward Naibu's shareholders for their long term support, the Board has decided to announce a final dividend payment of 4 pence per share to our shareholders. This initial dividend reflects the Board's positive outlook for the future of the Group and it is intended that it will mark the start of a progressive dividend policy going forward. In future years, the board expects to distribute approximately one third of the total dividends expected for the year as an interim dividend, and two thirds of the expected total dividends for the year as a final dividend. This dividend is subject to shareholder approval and the appropriate approvals of the Chinese authorities. The final dividend of 4 pence per share is expected to be paid on 19 September 2013 to shareholders on the register at the close of business on Friday 7 August 2013. The shares will go ex-dividend on 7 August 2013.
Li Zhen
Chief Financial Officer
21 May 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THEFINANCIAL YEAR ENDED 31 DECEMBER 2012
Proforma Proforma
Year ended 31 December
2012 2011
Notes RMB'000 RMB'000
Revenue 1,676,613 1,491,645
Cost of sales (1,207,224) (1,070,100)
Gross profit 469,389 421,545
Other income 1,976 825
Selling and distribution expenses (79,044) (58,858)
Administrative expenses (31,868) (18,311)
Profit before taxation 360,453 345,201
Income tax expense 4 (95,323) (61,933)
Profit after taxation 265,130 283,268
Other comprehensive gain, net
of tax
Translation differences arising
from foreign currency financial
statements recognised directly
in equity 480 -
Total comprehensive income
attributable to equity holders
of the parent 265,610 283,268
============================= ============
Earnings per share - Basic
(RMB) 6 4.94 5.67
================= =======
Earnings per share - Diluted
(RMB) 6 4.94 5.67
================= =======
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012
Proforma
As at 31 December
2012 2011
Notes RMB'000 RMB'000
ASSETS
Non-current assets
Property, plant and equipment 10,568 13,150
Long-term prepayment 7 33,275 -
43,843 13,150
Current assets
Inventories 64,829 78,974
Trade and other receivables 609,475 519,858
Cash and bank balances 452,906 286,801
-------------- -------------
1,127,210 885,633
-------------- -------------
Total assets 1,171,053 898,783
============== =============
LIABILITIES AND EQUITY
Non-current liabilities
Deferred income tax liabilities 7,861 5,367
-------------- -------------
7,861 5,367
Current liabilities
Trade payables 134,595 182,339
Other payables and accruals 35,009 34,397
Amount due to a director/shareholder 1,059 19
Income tax payable 20,446 24,491
-------------- -------------
191,109 241,246
-------------- -------------
Total liabilities 198,970 246,613
-------------- -------------
Capital and Reserves
Stated capital account 8 54,314 -
Reserves 150,621 122,439
Retained earnings 767,148 529,731
-------------- -------------
Total equity attributable
to equity holders of the
parent 972,083 652,170
-------------- -------------
Total liabilities and
equity 1,171,053 898,783
============== =============
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012
Attributable to the Company's equity
holders
----------------------------------------------------------
Stated Re- Currency Statutory Retained Total
Capital Construction Translation Reserve Profits
Account Reserve Reserve
Proforma RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Balance at 1 January
2011 - 31,426 2,178 62,841 272,457 368,902
Profit for the year - - - - 283,268 283,268
Other comprehensive
income - Foreign currency - - - -
translation differences
--------- ---------------- ------------- ---------- ---------- ----------
Total comprehensive
income for the year - - - 283,268 283,268
Transfer to statutory
reserve - - - 25,994 (25,994) -
Dividends (Note 5) - - - -
Balance at 31 December
2011 - 31,426 2,178 88,835 529,731 652,170
Issue of ordinary shares,
net of share issue
costs 54,314 (11) 54,303
--------- ---------------- ------------- ---------- ---------- ----------
Profit for the year - - - - 265,130 265,129
Other comprehensive
income - Foreign currency
translation differences 480 480
--------- ---------------- ------------- ---------- ---------- ----------
Total comprehensive
income for the year - - 480 - 265,130 265,610
Transfer to statutory
reserve - - - 27,712 (27,712) -
Balance at 31 December
2012 54,314 31,415 2,658 116,547 767,149 972,083
============================ ========= ================ ============= ========== ========== ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FINANCIALYEAR ENDED 31 DECEMBER 2012
Proforma Proforma
Year ended 31 December
Notes 2012 2011
RMB'000 RMB'000
Cash flows from operating activities
Profit before taxation 360,453 345,201
Adjustments for :
Depreciation and amortisation 5,515 2,669
Interest income (1,281) (535)
Operating profit before working capital
changes 364,687 347,335
Decrease / (increase) in inventories 14,145 (44,972)
(Increase) in trade and other receivables (89,149) (188,226)
(Decrease) / increase in trade payables (47,743) 102,132
Increase in accruals and other payables 612 4,713
Net cash generated by operating activities 242,552 220,982
Interest received 1,281 535
Income tax paid (96,875) (68,325)
Net cash generated by operating activities 146,958 153,192
----------- ------------
Cash flows from investing activities
Acquisition of property, plant and
equipment (17) (20)
Refurbishment of property, plant and (36,191) -
equipment
Net cash used in investing activities (36,208) (20)
----------- ------------
Cash flows from financing activities
Share issue proceeds, net of issue 54,314 -
costs
Advances from a director/shareholder 1,041 19
Net cash generated from/(used in) financing
activities 55,355 19
----------- ------------
Net increase in cash and cash equivalent 166,105 153,191
Cash and cash equivalent at beginning
of the financial year 286,801 133,610
Cash and cash equivalent at end of
the financial year 452,906 286,801
=========== ============
Notes to the financial information
1. GENERAL INFORMATION
The Company was incorporated in Jersey, the Channel Islands, on 15 December 2011. The Company's registered office is at 26 New Street, St Helier, Jersey JE4 9WG, Channel Islands. The nature of the Company's operations and its principal activities are to act as the holding company of a group engaged in the design, manufacture and supply of Naibu branded sports shoes and the design and supply of Naibu branded clothing and accessories.
Naibu products target the mass-market, focussing primarily on students and young adults aged between 12 and 35, offering them branded sports fashion at a reasonable price. The Group has a strong research and development ("R&D") team, which in the Directors' opinion, is vital to the success of the brand. The Group leases two factories comprising of eight production lines. It has nearly 3,040 Naibu stores in cities across 21 of China's provinces and three of its municipalities. The company completed its listing on London AIM on 5 April 2012.
2. BASIS OF PREPARATION
The consolidated financial information has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") issued by the International Accounting Standards Board ("IASB") including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") and using the accounting policies which are consistent with those adopted in the admission document as well as applying the following accounting policy.
The principal accounting policies are consistent with those and are unchanged from those disclosed in the financial statements of Naibu HK Investment International Ltd for the year ended 31 December 2011 except for the following additional accounting policies:
"The company was incorporated on 15 December 2011 and entered into an agreement to acquire the entire issued and to be issued share capital of Naibu HK Investment International Ltd on 13 February 2012. The acquisition was effected by way of issue of shares.
In determining the appropriate accounting treatment for this transaction, the Directors considered IFRS 3 "Business Combinations" (Revised 2008). However, they concluded that this transaction fell outside the scope of IFRS 3 (revised 2008) since the transaction described above represents a combination of entities under common control.
In accordance with IAS 8 "Accounting Policies, changes in accounting estimates and errors", in developing an appropriate accounting policy, the Directors have considered the pronouncements of other standard setting bodies and specifically looked to accounting principles generally accepted in the United Kingdom ("UK GAAP") for guidance (FRS 6 - Acquisitions and mergers) which does not conflict with IFRS and reflects the economic substance of the transaction.
Under UK GAAP, the assets and liabilities of both entities are recorded at book value, not fair value (although adjustments are made to achieve uniform accounting policies), intangible assets and contingent liabilities are recognised only to the extent that they were recognised by the legal acquirer in accordance within applicable IFRS, no goodwill is recognised, any expenses of the combination are written off immediately to the income statement and comparative amounts, if applicable, are restated as if the combination had taken place at the beginning of the earliest accounting period presented.
Therefore, although the Group reconstruction did not become unconditional until 13 February 2012, these consolidated financial statements are presented as if the Group structure has always been in place, including the activity from incorporation of the group's principal subsidiary. Both entities had the same management as well as majority shareholders.
Furthermore, as the Company was incorporated on 15 December 2011, while the enlarged group had been trading for years previously, the comparative information for the statement of comprehensive income, the consolidated statement of changes in equity and consolidated cash flow statements are proforma. On this basis, the Directors have decided that it is appropriate to reflect the combination using merger accounting principles as a group reconstruction under FRS 6 - Acquisitions and mergers in order to give a true and fair view. No fair value adjustments have been made as a result of the combination."
The financial information set out in this preliminary announcement does not constitute audited financial statements for the year ended 31 December 2012. The financial information for the year ended 31 December 2012 is derived from draft financial statements. The audit of the statutory accounts for the year ended 31 December 2012 is not yet complete. These accounts are expected to be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Jersey Companies Registry following the company's annual general meeting.
The financial information for the year ended 31 December 2011 set out in this interim financial information does not comprise the Group's statutory financial statements. They have been prepared by consolidating the Company and the consolidated financial statements of Naibu HK Investment International Ltd, the subsidiary of the Company, which were both prepared under IFRS and IFRIC interpretations as adopted by the European Union. Both the Company only and the consolidated financial statements of Naibu HK Investment International Ltd have been audited for the period ended 31 December 2011, both audit reports were unqualified. On this basis, the consolidated results of the Company for the year ended 31 December 2011 have been described as audited.
The financial information set out in this announcement was approved and authorised for issue by the board of directors on 20 May 2013.
Copies of this financial information will be available on the Company's website.
3. Significant accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the financial year. In addition, the Directors are also required to exercise their judgement in the process of applying the accounting policies. Although these estimates are based on the Directors' best knowledge of current events and actions, actual results may differ from those estimates.
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the process of applying the Group's accounting policies as described below, except for the critical judgements mentioned below, the Directors are of the opinion that there are no other instances of application of judgements which are expected to have a significant effect on the amounts recognised in the financial statements.
Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Management estimates the useful lives of property, plant and equipment to be within 5 to 10 years. The carrying amounts of the Group's property, plant and equipment as at 31 December 2012 and 31 December 2011 were RMB 43,843,000 and RMB 13,150,000 respectively. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.
Withholding tax on dividends - deferred tax
The Group is subject to income taxes in the tax jurisdiction in the PRC. According to the New Corporate Income Tax Law ("CIT") and the Detailed Implementation Regulations ("DIR"), dividends distributed to a foreign investor by Foreign Invested Enterprises ("FIE") in the PRC would be subject to a withholding tax of 5% to 10%. The Chinese tax authorities have granted a special tax concession which states that dividends distributed out of the earnings from 1 January 2008 of a FIE's profit, arising in year 2008 and beyond, to be distributed to the foreign investors as dividends shall be subject to withholding tax. Deferred tax liabilities arising from such temporary differences as a result of the new CIT are recognised to the extent that the management intends to distribute dividends from the retained earnings.
Key sources of estimation uncertainty
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial year are discussed below:
Income tax
The Group has exposure to income taxes in the PRC. Significant judgement is required in determining the provision for income taxes. There are also claims for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. When the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The carrying amounts of the Group's income tax payables as at 31 December 2011 and 2012 were RMB 24.5 million and RMB 24.4 million, respectively.
Impairment of trade receivables
The Group's management assesses the collectability of trade receivables. This estimate is based on the credit history of the Group's customers and the current market condition. Management assesses the collectability of trade receivables at the balance sheet date and recognises an impairment if appropriate Once debtors have been identified as having evidence of impairment, it is regularly reviewed and appropriate impairment position applied. The carrying amounts of the Group's trade and other receivables as at 31 December 2011 and 2012 were RMB 498.2million and RMB 515.1 million, respectively. No provisions to any of these debts have been provided for during any of these periods.
Net realisable value of inventories
The Group reviews the ageing analysis of inventories at each reporting date, and makes provision for obsolete and slow moving inventory items identified that are no longer suitable for sale, if any. The net realisable value for such inventories are estimated based primarily on the latest invoice prices and current market conditions. Possible changes in these estimates could result in revisions to the valuation of inventories. The carrying amount of the Group's inventories as at 31 December 2011 and 2012 were RMB 79.0 million and RMB 64.8 million, respectively.
Commercial and business environment in the PRC
The Chinese system operates within a political framework of communist control. Although the Directors believe that political conditions in the PRC are generally stable, changes may occur in its political, fiscal and legal systems which might affect the ownership or operation of the Group's interests, including, inter alia, changes in exchange control regulations, changes in government and in legislative and regulatory regimes.
Activities, assets and entities based in the PRC within the group may be impacted by these evolving structures as well as other China related considerations, which could impact on the control of individual assets or the control of whole entities.
4. INCOME TAX EXPENSE
Year ended 31 December
2012 2011
RMB'000 RMB'000
PRC income tax 92,829 86,839
PRC withholding tax - -
----------- ------------
Total current tax 92,829 86,839
Deferred tax 2,494 (24,906)
----------- ------------
Total tax charge 95,323 61,933
=========== ============
The reconciliation between tax expense and accounting profit at applicable tax rates is as follows:
Year ended 31 December
2012 2011
RMB'000 RMB'000
Profit before taxation 360,453 345,201
=========== ============
Tax at the applicable tax rate
of 25% 90,113 86,300
Tax effect of non-deductible
expenses 567 405
Tax effect of non-taxable income - -
Tax effect of exempt income - -
Different tax rate in different
jurisdictions 2,149 134
Effect of deferred tax on undistributed
PRC earnings 2,494 (24,906)
Withholding tax expense - -
----------- ------------
95,323 61,933
=========== ============
Naibu HK:
Naibu HK incurred losses for the financial years ended 31 December 2012 and 31 December 2011 respectively. The statutory income tax rate applicable to the Company is 16.5%.
Naibu China:
On 16 March 2007, the National People's Congress promulgated the PRC Enterprise Income Tax Law (the "New Tax Law"), which became effective from 1 January 2008.
Based on the "Income Tax Law of the PRC for Enterprises with Foreign Investments and Foreign Enterprises", Naibu China is entitled to full exemption from income tax for the first two years and a 50% reduction in income tax for the next three years starting from its first profitable year of operations. The first profit-making year of Naibu China commenced in 2006. Naibu China has obtained written confirmation from the relevant PRC tax authorities confirming that its 5 year tax holiday period commenced from 1 January 2006. Naibu China was entitled to full exemption of income tax for two years from 1 January 2006 to 31 December 2007, followed by a three year 50% relief from 1 January 2008 to 31 December 2010. Effective from 1 January 2011, Naibu China will be subject to Enterprise Income Tax ("EIT") at a standard rate of 25%.
5. DIVIDENDS
Dividends disclosed represent dividends on ordinary shares declared and paid by the Company to its equity holders.
There are no dividends declared and paid by the Company during the year ended 31 December 2012 and 2011.
The Company has resolved to pay a final dividend in respect of the year ended 31 December 2012 of 4 pence per share, subject to shareholder approval and the appropriate approval of the Chinese authorities. .
6. EARNINGS PER SHARE (a) Basic
Basic earnings per share is 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:
Year ended 31 December
2012 2011
Proforma Proforma
------------ -----------
Profit attributable to
equity holders of the Company
(RMB'000) 265,130 283,268
Weighted average number
of ordinary shares in issue
('000) 53,629 50,000
Profit per share (RMB) 4.94 5.67
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares during the period.
Year ended 31 December
2012 2011
Proforma Proforma
------------ -----------
Profit attributable to
equity holders of the Company
(RMB'000) 265,130 283,268
Weighted average number
of ordinary shares in issue
('000) 53,629 50,000
Profit per share (RMB) 4.94 5.67
7. LONG-TERM PREPAYMENT
Long-term prepayment refers to the prepayment of store renovation for distributors, which is amortised for a period of three years.
The renovation prepayment of exclusive stores for distributors during the year has a total amount of RMB 54,287,000, in which RMB 25,348,000 was incurred in September 2012, and RMB 28,939,000 was incurred in November 2012.
The amortisation amount of the renovation prepayment for the year was RMB 2,916,000. Therefore, the carrying amount of the prepayment at the end of the year was RMB 51,371,000. In which, the prepayment for current period (less than one year) is RMB 18,096,000, and the long-term prepayment (more than one year) is RMB 33,275,000.
8. STATED CAPITAL ACCOUNT
Ordinary shares of no par value
Issued and fully paid Year ended 31 December 2012 As at 1 January 2012 Number RMB'000 Issue of shares on incorporation 2 - Share issue (9 February 2012) 990,000 801 Share issue (13 February 2012) 9,998 8 Share split (27 February 2012) 49,000,000 - Share issued on admission to trading on AIM, net of issue costs 4,838,716 53,505 As at 31 December 2012 54,838,716 54,314
On incorporation, the company issued 2 Ordinary shares of no par value. On 8 February 2012, the Company issued 990,000 Ordinary share of no par value. On 13 February 2012, the Company issued 9,998 Ordinary shares of no par value. On 27 February 2012, the Company subdivided each issued Ordinary share of no par value into 50 Ordinary shares of no par value at HKD0.02 per share.
The admission of the enlarged Share Capital to trading was effective on 5 April 2012 with a placing of 4,838,716 Ordinary shares of no par value at 124 pence per share (RMB 60,131,478). The share issue costs associated with this transaction of RMB 6,626,818 (GBP 661,234) have been deducted from the Company's stated capital.
Under the Memorandum of Association, the Company is authorised to issue an unlimited number of Ordinary shares of no par value.
9. SEGMENT INFORMATION
Business segment
The Group's primary format for reporting segment information is business segments, with each segment representing a product category. The Group's business segments are organised as follows:
(i) Design, manufacture and sale of sports and leisure footwear
Design, manufacture and sale of sports and leisure footwear which comprise athletic footwear designed for specific sporting activities such as running, tennis, basketball and skate board as well as leisure footwear, marketed under the "Naibu" brand.
(ii) Design and sale of sports apparels and accessories
Sports apparels and accessories comprise apparels for specific sporting activities such as running, tennis, basketball and leisure; functional apparels such as t-shirts, polo shirts and windbreakers; and accessories such as sport bags, caps, socks, protective guards and basketballs, marketed under the "Naibu" brand.
Geographical segment
As the business of the Group is principally engaged in the PRC, no reporting by geographical location of operation is presented.
The segment information provided to the management for the reportable segments for the financial year from 1 January 2012 to 31 December 2012is as follows:
(A) Financial Period from 1 January 2012 to 31 December 2012
Shoes Apparels Unallocated Total
and Accessories
RMB'000 RMB'000 RMB'000 RMB'000
Revenue:
Revenues from external
customers (1) 919,271 757,342 - 1,676,613
-------------------------------- -------- ----------------- ------------ ----------
Results:
Interest income 703 579 208 1,490
Depreciation 3,744 1,771 - 5,515
Segment profit 186,982 182,971 (9,500) 360,453
-------------------------------- -------- ----------------- ------------ ----------
Assets:
Addition to non-current
assets (2) 19,853 16,355 - 36,208
Reportable segment assets 377,472 330,506 463,075 1,171,053
-------------------------------- -------- ----------------- ------------ ----------
Liabilities:
Reportable segment liabilities 85,801 100,172 12,997 198,970
-------------------------------- -------- ----------------- ------------ ----------
(1) Revenues from the Group's top two customers amounted to approximately RMB 356,127,551, which contributed 11% and 10% of the Group's total revenue. These revenue are attributable for both the shoes and apparels and accessories segments.
(2) Additions to non-current assets relate to additions to property, plant and equipment.
(B) Reconciliation of reportable segment revenue, profit and loss, assets and liabilities
For the financial
year ended 31
December 2012
RMB'000
Profit or loss
Total profit for reportable segments 369,953
Unallocated other income and expenses
Administrative expenses (9,500)
Profit before taxation 360,453
RMB'000
Assets
Total assets for reportable segments 707,978
Unallocated
Cash and cash equivalents 452,906
Amount due from a related party 10,169
1,171,053
Liabilities
Total liabilities for reportable segments 185,973
Unallocated
Deferred income tax liabilities 7,860
Other payables and accruals 4,076
Amount due to a director/shareholder 1,059
198,970
The segment information provided to the management for the reportable segments for the financial year from 1 January 2011 to 31 December 2011is as follows:
(A) Financial Year from 1 January 2011 to 31 December 2011
Apparels
and
Shoes Accessories Unallocated Total
RMB'000 RMB'000 RMB'000 RMB'000
Revenue:
Revenues from external
customers (1) 829,546 662,099 - 1,491,645
-------------------------------- -------- ------------- -------------- ----------
Results:
Interest income 297 238 - 535
Depreciation 2,440 229 - 2,669
Segment profit 182,662 164,121 (1,582) 345,201
-------------------------------- -------- ------------- -------------- ----------
Assets:
Additions to non-current
assets (2) 20 - - 20
Reportable segment assets 357,806 254,075 286,901 898,782
-------------------------------- -------- ------------- -------------- ----------
Liabilities:
Reportable segment liabilities 151,089 86,182 9,341 246,612
-------------------------------- -------- ------------- -------------- ----------
(1) Revenues from the Group's top two customers amounted to approximately RMB 317,642,033, which contributed 11% and 10% of the Group's total revenue. These revenues are attributable to both the shoes and apparels and accessories segments.
(2) Additions to non-current assets relate to additions to property, plant and equipment.
(B) Reconciliation of reportable segment revenue, profit and loss, assets and liabilities
For the financial
year
ended 31
December
2011
RMB'000
Profit or loss
Total profit for reportable segments 346,783
Unallocated other income and expenses
Administrative expenses (1,582)
------------------
Profit before taxation 345,201
==================
For the financial
year ended 31 December
2011
RMB'000
Assets
Total assets for reportable segments 611,882
Unallocated
Cash and cash equivalents 286,801
Amount due from a related party 100
898,783
Liabilities
Total liabilities for reportable segments 237,271
Unallocated
Deferred income tax liabilities 5,367
Other payables and accruals 3,956
Amount due to a director/shareholder 19
246,613
In addition to the transactions and balances detailed elsewhere in this report, the Group had the following transactions with related parties at agreed rates:
Year ended 31
December
2012 2011
RMB'000 RMB'000
Rental paid to a related party(1) 960 960
Deposit paid to related party(1) for
acquisition of factory premise - 10,000
Other receivable from a related party 10,100 -
(deposit payment)
Other payable to shareholders 1,059 -
Directors' remuneration (inclusive of
retirement scheme contribution)
* Mr. Lin Huoyan 1,414 263
* Mr. Lin Congdeng 1,239 165
* Ms. Lin Zhenzhi 149 133
- Mr. Chi Keung (Kenny) Law 980 -
- Mr. Giles Elliott 459 -
- Mr. David Thomas 306 -
- Mr. Stephen Cheung 306 -
(1) Related party relates to Fujian Jun Xiang (formerly known as Quanzhou Naibu Sports Co., Ltd) in which a director, Mr Lin Huoyan was the shareholder in 2008 and 2009. Mr Lin Huoyan transferred his shareholding to his mother in 2010.
The ultimate controlling shareholder of the Group is Mr Lin Huoyan.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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