H2 result just in: Revenue up 2% Gross profit up 3% Operating profit up 4% Net profit down 12% (Reason: Higher interest expense and higher tax) Increase of trade receivables would have been a worry but it is well explained by management: \"The significant increase in trade receivables is mainly because of the sales increase towards the end of the period and these were substantially repaid subsequent to 30 June 2008.\" Management outlook: \"The February snowstorms brought about a severe disruption of customers\' production in the months of February and March 2008 and as such, fewer orders were received from customers. However, the Group\'s sales increased significantly in 2Q2008 which resulted in the overall increase in revenue for HY2008 as compared to HY2007. With the completion of the new factory which is expected to be operational by the start of 4Q2008, the management sees a good opportunity to further increase our market share in the Synthetic Cotton segment. With the new factory, the management expects to effectively utilise resources to improve on product quality and increase product range. The effect of our improvement in resource utilisation is expected to be reflected in FY2009\'s financial results.\"
For your information, Tembusu is also in another Company called Advance SCT. Check the market price now. Anybody wants to volunteer information what happened to that market darling??
Independent Director Mr Gui Kim Young has just doubled his holdings to 400,000 @ 17 cents. I would bet that fundamental of Hongwei is still intact even though other textile firms are suffering, especially those exporting.
info.sgx.com/webcorannc.nsf/e9886c563726...012d0f7?OpenDocument
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