Fung Choi rakes in higher profit from new business

Fung Choi Media Group reported a 17.9 per cent rise in full year net profit to HK$103.1 million (S$17 million).

Revenue for the year to June 30 was up 74 per cent to HK$3.92 billion.

Riding on the existing printing and packaging customers, the group has expanded into supply chain management business during the year.

This expansion included the procurement and sourcing of products such as packaging boxes and various types of accessories for digital products and electrical equipment.

Notwithstanding its low margin, this new business grew tremendously and contributed a turnover of HK$1.75 billion to Group revenue.

Gross profit decreased by 5.9 per cent to HK$504.1 million, while profit margin fell by 10.9 percentage points to 12.9 per cent.

The drop was largely due to the commencement of the supply chain management business, which was of high volume but low profit margin in nature.

Earnings per share firmed to 14.2 HK cents from 12.1 HK cents previously while net asset value per share grew to HK$2.74 compared to HK$2.62 as at June 30 last year.

Barring unforeseen circumstances, the group is expected to remain profitable in the new financial year.