Pacific Textiles Holdings Limited, a leading manufacturer of customized knitted fabrics announced its annual results for the year ended 31 March 2007 (FY2007). This is the first set of results since the Group’s listing in May 2007. The Group’s competitive edge in manufacturing complex, value-added fabrics and its focus on high margin products have delivered superior margin returns and reinforced its leading position in quality knitted fabric manufacturing sector.
In FY2007, the Group recorded revenue of HK$4,203.4 million, up 25% from HK$3,363.0 million last year. The increase in revenue was mainly due to the expansion of its production capacity as well as moderate increase in average selling price. Profit attributable to equity holders also increased by 21% to HK$555.7 million. Net profit margin attributable to equity holders of the Company reached 13.2%.
Sales volume of the Group in the period under review was 154 million pounds (FY2006: 126 million pounds), representing an increase of 22%. During the period under review, the Group closely collaborated with apparel brand owners to design fabrics that meet customized order particulars.
It maintained good relationships with owners of leading brands such as Calvin Klein, Liz Claiborne, Maidenform, Marks & Spencer, Triumph, UNIQLO, VF Intimates and Victoria’s Secret.
The apparel brand owners who use our fabrics in their garments, although not our direct customers, are the principal driversof our fabric sales. The Group’s top five customers accounted for 31.5% (2006: 30.4%) of its revenue for the FY2007. 49.9% (2006: 53.7%) of our overall sales revenue was derived from our top five brand owners in 2007.
Mr. Wan Wai Loi, Executive Director (Chairman of the Board) said, “We are confident about the global textile market, especially in China. With the impending elimination of export quotas on China, we will proactively take advantage of the continuing migration of the garment industry in Asia, particularly in China, to expand our business as well as capture the growing demand of the domestic apparel market.”
Business Review:
During the reporting period, the Group continued to expand its production volume in both production facilities, namely, Panyu, Guangdong province (Panyu) and Avissawella, Sri Lanka.The production volume of its principal manufacturing facility in Panyu was 154 million pounds for FY2007, representing a y-o-y increase of 27%.
In order to meet customer demand and boost capacity, the Group significantly expanded its infrastructure and supporting equipment at Panyu including expansion of its cogeneration power plant and the completion of the Phase III of our water treatment plant in December 2006 that doubled its water treatment capacity from 20,000 to 40,000 cubic meters per day.
Following the acquisition of Textured Jersey Lanka (Pvt) Limited in late 2004, the Group has successfully doubled the production volume of the plant in Sri Lanka. The production volume in as at the end of March 2007 increased to 11 million pounds.
Moreover, as many of brand owner customers of the Group employ garment manufacturers based in Sri Lanka, the production facility in Sri Lanka strengthens the competitive position of the Group through geographic diversification.
