| To: Business Editors | For Immediate Release |
(Hong Kong, 25 March, 2010) Leeport (Holdings) Limited ("Leeport" or the "Group") (Stock Code:387), which is principally engaged in the distribution of advanced manufacturing equipment, measuring instruments and precision tools for manufacturing industry, today announced its annual results for the year ended 31st December, 2009. The turnover in 2009 amounted to HK$758,562,000 (2008: HK$1,037,212,000), representing a decrease of 26.9% as compared with 2008. The loss attributable to equity holders was HK$34,348,000 (2008: Profit of HK$7,896,000). No final dividend is recommended by directors.
The global financial crisis since the last quarter of year 2008 has significantly affected the demand for manufacturing equipment in China and South East Asia and the Company has accordingly recorded a loss for the year 2009.
On the other hand, the Group was successful in reducing its inventory by HK$112,935,000 by the end of 2009. Its inventory balance was HK$181,803,000 at the end of 2009 as compared with HK$294,738,000 at the end of 2008. The Group's cash balance on hand at the end of 2009 was HK$57,600,000, a much better position than the cash balance of HK$18,088,000 at the end of 2008. The net gearing ratio was about 43.8% at the end of 2009 as compared with 68.4% at the end of 2008.
The poor commercial situation for manufacturers involved in export has significantly affected the Group's business. Most manufacturers hesitated in acquiring new equipment. The situation, however, has improved since the last quarter of 2009.
In year 2010, China's domestic consumption market continues to be a major driver for the country's economy, and an improvement in its export market is likely to further enhance its economy.
The Group is increasing its investment in South East Asia. A stronger team is being built to expand its metalforming business in the region.
By establishing metrology centres in Beijing, Shanghai and Dongguan together with the support from our suppliers, the Group expects significant growth in metrology division in the whole of China.
"Market sentiment has become more positive and we believe that the business will gradually pick up again. The Group's order bookings in January and February of 2010 are encouraging and stand at about HK$200 million," said Mr. Joseph Lee, Chairman and Managing Director of Leeport. "We have launched a number of cost-reduction programs in the second half of 2009. The effect of these reduction in operating costs will be seen in 2010. The Group aims to return to profit in year 2010."
About Leeport (Holdings) Limited (Stock Code:387)
Established in 1967, Leeport is principally engaged in the trading and installation of
machine tools, measuring instruments and related products, as well as equipment for the
electronics industry. Over the years, Leeport has established long-term relationships
with reputable leading global suppliers to provide a wide range of products and services.
Leeport is committed to supplying advanced equipment and manufacturing solutions and
providing quality customer services.
For enquiries, please contact:
Capper Ngan
Corporate Communications Dept.
Tel: (852) 2494 1737
Fax: (852) 2418 4651
Email: capperngan@leeport.com.hk
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