(L-R) Neo Chee Beng, executive chairman of Asia Fashion, and Jimmy Ng, the CFO. NextInsight file photo.PARTLY OWING TO the traditionally slow business environment in 1Q, when the Chinese New Year holidays take place, Asia Fashion Holdings' revenue from its continuing operations dropped to RMB176.9 million compared to RMB311.7 million in 4Q of last year.
A main contributor to the sales fall q-o-q was a 64% decline in sales of magnesium multifunctional boards amounting to RMB185.2 million.
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Asia Fashion had delivered a big amount in 4Q2014 to the major customer, Beijing Baota Petrochemical Company, a subsidiary of one of the largest private petrochemical groups in China.
Asia Fashion's net profit from continuing operations came in at RMB8.9 million. There is no comparision with 1Q2014 because the continuing business was not acquired at that time.
Gross profit margin was 29.1%, higher than the 22.1% achieved in 4Q2014.
The main reason: Certain experimental improvements, such as the inclusion of layers of mesh in the basic product without increasing the selling prices, were made in the last quarter. "The gross margin is normalized in the current quarter," said Asia Fashion.
Asia Fashion's new business deals in high-tech and eco-friendly construction materials. It has disposed of its old fabric business in Feb 2015.
Asia Fashion's new business produces cost-effective boards that are sound-proof for auditoriums (top left), fire-safe for public buildings (top right), water-proof for toilets (bottom left), and lightweight for false ceilings (bottom right).
