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Casablanca's FY2017 Net Profit Rockets 241%

  • Written by ACN Newswire
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HONG KONG, Mar 26, 2018 - (ACN Newswire) - Leading branded bedding products enterprise in the Greater China Region Casablanca Group Limited ("Casablanca" or "the Group") (stock code: 2223) today announced its annual results for the year ended 31 December 2017. During the year, the Group recorded revenue of approximately HK$347.4 million (2016: HK$356.7 million). Thanks to the revenue increase of the high-end CASA-V brand and effective cost control, profit for the year had a remarkable 240.9% increase from HK$7.9 million in the previous year to HK$27.0 million this year. Basic earnings per share grew from 3.1 HK cents in the previous year to 10.5 HK cents this year.

During the year, the Group focused on enhancing its brand value and broadening revenue sources via pursuing business development, sales channel optimisation and product research and development. A series of products capable of repelling mosquitoes and insects, which promises customers a better environment for enjoying quality sleep, was added under the CASA-V brand, helping the Group strengthen its image as a "Healthy Sleeping Expert". At the same time, the Group stepped up developing the business customer market. Apart from providing organisations, such as hospitals, hotels and universities, bedding products made to satisfy their specific needs, the Group also continued to provide products to different commercial customers, such as banks, personal care chains and telecommunications network operators for gift redemption by their customers. At the beginning of 2018, the Group received purchase orders from government departments, which is expected to become a new business growth driver.

With the gradual restructuring of its sales network in Mainland China completed, the Group saw its operational efficiency improve. During the year, the Group closed down some underperforming self-operated POS, while retaining and opening highly profitable POS at strategic locations, and as a result, its distribution costs came down. It also relocated its PRC sales headquarters from Shenzhen to Huizhou to consolidate operations, which allowed it to effectively trim operating costs.

Mr. Cheng Sze Kin, Chairman of Casablanca, said, "Rising costs, tightening environmental requirements and flagging growth of traditional sales channels are some of many challenges faced by home textile enterprises in recent years. The Group, however, has not been deterred by those challenges and instead it insists on raising its corporate management capability, while pushing to broaden revenue sources and for better cost control. It has also strived to improve profitability by diversifying its business and upgrading products, and of such endeavors, supplying products to commercial customers for gift redemption in the first half year brought the most remarkable return, plus the improving consumption sentiment in Mainland China and Hong Kong, which enabled the Group to achieve satisfactory results for 2017, as it celebrates the advent of its 25th anniversary."

Looking forward, the Group will, via a joint venture (51% owned by the Group) set up with a company in furniture manufacturing and sale in southern China, launch the "Healthy Lifestyle Store" business to provide bedding products, beds, sofas and kitchen cabinets, as well as customised furnishing service to mainland consumers with a taste for stylish living. Its aim is to stand out in the noisy home product market by offering a one-stop shopping experience to consumers.

Regarding online sales, the Group is partnering with a team of experienced e-commerce professionals in the PRC to fine tune the setup of its mainland online sales operation. This effort plus the launch of its official Hong Kong eShop in recent months are expected to gradually see online sales contributing a bigger and bigger share of revenue to the total of the Group.

Mr. Cheng Sze Tsan, Chief Executive Officer of Casablanca, concluded, "The Group is dedicated to providing consumers with quality and stylish bedding products with health-enhancing functions, hence it has never spared any effort in product and sales channel development. In 2018, the Group, in celebrating its 25th anniversary, will mount an array of publicity activities themed 'The Heritage of Italian Craftsmanship' to strengthen its 'Healthy Sleeping Expert' image. It will also further product diversification, introduce innovative products and tap new sales channels in its bid to achieve even more satisfactory business results."

About Casablanca Group Limited (stock code: 2223)Casablanca mainly engages in the design, production, distribution and retailing of bedding products. As one of the leading branded bedding products enterprises in the Greater China Region, it boasts a number of own brands, such as Casablanca, Casa Calvin and CASA-V. Headquartered in Hong Kong, the Group is supported by an offline sales network made up of its own counters and brand outlets, and distributors and other POS in 73 cities in the Greater China Region. Through these offline sale channels, plus its Hong Kong official eShop and online sales provisions tailored for consumers in Mainland China, the Group provides customers with stylish bedding products of premium quality and with health-enhancing features.

For press enquiries:Strategic Financial Relations LimitedVicky Lee (852) 2864 4834 [email protected][1]Phoebe Leung (852) 2114 4172 [email protected][2]Alice Yip (852) 2864 4862 [email protected][3]Website: www.sprg.com.hk[4]

Topic: Press release summarySectors: Daily Finance, Daily News[5][6] http://www.acnnewswire.com From the Asia Corporate News Network

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

References

  1. ^ [email protected] (www.acnnewswire.com)
  2. ^ [email protected] (www.acnnewswire.com)
  3. ^ [email protected] (www.acnnewswire.com)
  4. ^ www.sprg.com.hk (www.sprg.com.hk)
  5. ^ Daily Finance (www.acnnewswire.com)
  6. ^ Daily News (www.acnnewswire.com)

Authors: ACN Newswire

Read more http://www.acnnewswire.com/press-release/english/42327/

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