Financial Highlights (For the six months ended 30 June)
2010 2009 Change
(RMB'000) (RMB'000) (%)
Turnover 85,919 65,217 + 31.7
Gross Profit 55,152 38,409 + 43.6
Profit before tax 38,402 26,645 + 44.1
Profit attributable to
owners of the Company 29,224 21,327 + 37.0
Basic earnings per share
(RMB cents) 11.7 11.4 + 2.6
Carpenter Tan Holdings Limited ("Carpenter Tan" and its subsidiaries,
collectively the "Group", HKEx stock code: 837), the renowned manufacturer,
distributor and retailer of small wooden accessories with traditional Chinese
cultural features, announced its interim results for the six months ended 30
June 2010 (the "period under review").
Benefited from the improvement of business environment, the Group expanded
its business and hence achieved satisfactory results. Turnover increased by
31.7% to RMB85,919,000 compared to the corresponding period of last year.
Gross profit reached RMB55,152,000 with an increase of 43.6%; while gross
profit margin increased from 58.9% to 64.2%. Profit before tax reached
RMB38,402,000, representing an increase of 44.1%. Profit attributable to
owners of the Company surged 37.0% to RMB29,224,000. Basic earnings per share
are RMB11.7 cents.
Mr. Tan Chuan Hua, Chairman and Chief Executive Officer of Carpenter Tan
said, "During the first half of 2010, the Chinese economy recovered from the
global financial crisis and gained its development momentum. With the rising
consumer purchasing power, the environment of the retail industry has improved.
Revenue growth was attributable to the exertion of the Group's enhanced
competitiveness by grasping opportunities in the recovery of the China economy.
The expansion of the Group's wooden accessories retail business led to an
increase in the number of franchise shops and purchase of products. As a
result, franchise fee income of RMB565,000 was received during the period
under review, and achieved to an outstanding operating results."
The Group has developed an extensive distribution network by operating the
franchise programme in the PRC and abroad. As at 30 June 2010, the Group had
953 franchise shops in the PRC, representing an increase of 161 shops as
compared with the corresponding period last year, with extensive geographical
coverage of PRC. The Group had three franchise shops in Singapore, one
franchise shop in Korea and one franchise shop the United States. The Group
has also established four overseas self-operated retail shops under the name
of Carpenter Tan in Hong Kong.
During the period under review, the Group established a number of demo
shops in the central business districts of China's first tier cities. 21 demo
shops were established by the Group's franchisees and the number is expected
to increase to approximately 40 this year. In addition, the Group continued
the operation of Carpenter Tan home accessories shops and Carpenter Tan
handicraft stores.
In addition, the Group further explored the overseas market and
successfully developed 8 new customers in Canada, Italy and Australia. It has
also planned to open new stores in Thailand, Malaysia and Saudi Arabia to
consolidate the Group's position and coverage in international market, with an
aim to enhance the presence in the international market.
The Group strives to provide consumer various choices by introducing new
products. During the period under review, 567 types of products have been
successfully developed, among which 71 types of products has been launched in
the market, comprising hangers, gift boxes, mirrors and accessories. The
Group's production capacity also increased in order to keep pace with market
demand. The output of combs increased to 1,961,000 from 1,507,000 units
compared to the corresponding period in last year. The output of mirrors and
other products has been increase from 171,000 units to 281,000 units.
During the period under review, the Group also launched marketing
campaigns in various media, including the advertisements at the demo shops
throughout China and the online promotion activities, to promote the awareness
of the Carpenter Tan brand.
Looking forward to the second half of 2010, the Group will continue to
develop by grasping the opportunities brought by the strong economic growth in
China. The Group plans to upgrade approximately 40 shops in major cities like
Beijing, Shanghai, and Guangzhou, etc. It will also establish flagship stores
in first-tier cities in order to enhance brand penetration in local consumer
market. In addition, the Group will further expand into overseas markets and
enlarge the overseas customer bases in Europe and the United States. The Group
also intends to open shops in the Southeast Asia and Middle East markets.
"As mainland China's domestic economy continues to develop rapidly, the
Group is confident of its ability to benefit from the positive effects of
upwardly rising trends in retail consumption. To this end, The Group is now
poised to explore a wider range of development opportunities to build
'Carpenter Tan' into a leading international wooden accessories products brand
while bringing in extraordinary returns for investors," Mr. Tan concluded.
Turnover analysis by products
Six months ended 30 June
2010 2009
(RMB'000) % (RMB'000) %
Sales
- Combs 28,041 32.6 25,308 38.8
- Mirrors 1,233 1.4 1,137 1.8
- Box sets 51,316 59.8 34,369 52.7
- Other accessories* 4,764 5.5 3,665 5.6
Franchise fee income 565 0.7 738 1.1
Total 85,919 100.0 65,217 100.0
* Other accessories include small home accessories as well as furniture.
About Carpenter Tan
Carpenter Tan is primarily engaged in the design, manufacture and
distribution of small wooden accessories reflecting traditional Chinese
cultural features, and also developed its own franchised network of shop
outlets. The Group's products fall into four major categories: (1) combs made
of wood or horns, (2) pocket-sized wooden mirrors, (3) accessories and
adornments, (4) box sets. Over 2,000 products sold under the name "Carpenter
Tan" have been launched onto the market. Carpenter Tan also had 953 franchise
shops widely dispersed across the PRC. In addition, there are five franchise
shops each in Singapore and Malaysia and one franchise shop each in the United
States and Korea. The Group also oversees four self-operated retail shops
under the name of "Carpenter Tan" in Hong Kong. The Group was successively
named by Forbes China as one of the Top Highest Growth Potential Enterprises
from 2006 to 2009.
For further information, please contact:
Porda International (Financial) PR Group
Ms. Keely Chan
Tel: +852 3150 6760
Email: keely.chan@pordafinance.com.hk
Ms. Kelly Fung
Tel: +852 3150-6763
Email: kelly.fung@pordafinance.com.hk
Ms. Fiona Ko
Tel: +852 3150-6750
Email: fiona.ko@pordafinance.com.hk
Ms. Kiki Zhang
Tel: +852-3150-6775
Email: Kiki.zhang@pordafinance.com.hk
Fax: +852-3150-6728
SOURCE Carpenter Tan Holdings Limited
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