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| Profit Rockets 170.0% to HK$5.4 Million |
HONG KONG, Sept 12, 2019 - (ACN Newswire) - Bortex Global Limited ("Bortex" or the "Group") (stock code: 8118), an expanding manufacturer and exporter of LED lighting products, today announced its FY2020 unaudited first-quarter results for the three months ended July 31 2019 ("Period Under Review").
In the Period Under Review, the Group's revenue grew year-on-year by 60.6% to HK$44.8 million (three months ended July 31 2018: approximately HK$27.9 million). Profit for the period surged by 170.0% to HK$5.4 million (three months ended July 31 2018: approximately HK$2.0 million) and gross profit rose by 55.4% to HK$11.5 million (three months ended July 31 2018: approximately HK$7.4 million). The sharp increase was mainly attributable to the significant climb in revenue of LED decorative lighting products welcomed by customers in Hong Kong and Canada.
Despite that, as a result of the trade tensions between the US and China, and uncertain global economic outlook, the Group has strived to increase sales in Hong Kong, Canada and other regions to counter the decrease in sales in the US. During the review period, the total revenue from Hong Kong and Canada surged by an impressive 141.7% to approximately HK$40.6 million (three months ended July 31 2018: approximately HK$16.8 million). The Group sought to mitigate the impact from the Sino-US trade conflict by focusing on maintaining cooperation with long-standing customers. Revenue from LED decorative lighting products recorded a 61.7% increase to approximately HK$44.3 million (three months ended July 31 2018: approximately HK$27.4 million), accounting for 98.8% of the Group's total revenue.
The Group's LED luminaire lighting series business has been recovering gradually. Revenue of the business for the Period Under Review had an approximately 25% increase to HK$0.5 million (three months ended July 31 2018: approximately HK$0.4 million). The Group is optimistic about the performance of the business segment moving forward because it has had success with customer development and completed the production line upgrade during the year ended 30 April 2019.
To avoid risk from the volatile and trade-driven market, the Group focused on cultivating relationship with existing customers as well as expanding its product portfolio. During the year, the Group has been exploring setting up a new production line in Phnom Penh, Cambodia. A new company set up through the Qualify Investment Project (the "QIP") of the country is entitled to tax benefits for importing raw materials, semi-products and machinery from China and exporting light products to the US.
Looking ahead, the Group will continue to design and develop new lighting products so as to set itself apart from its peers and enhance its competitiveness in the specialised LED lighting market. Moreover, it will tighten cooperation with customers to ensure it can deliver just-in-time service to meet customers' needs. It will also closely monitor market conditions and strengthen brand exposure in the market, so that it may create greater value for shareholders.
Topic: Press release summary
Source: Bortex Global Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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