On the evening of October 25, the Crocodile Shirt announced its full-year results as of July 31, 2013. According to the announcement, during the reporting period, the company’s revenue decreased by 1.2% to HK$499 million, while gross profit decreased by 7.4% to HK$303 million.
The profits of Crocodile shirts have suddenly increased sharply this year. For a veteran apparel company, if the market is unsatisfactory, such achievement is unbelievable. "Daily Economic News" reporter noted that the performance report released by the Crocodile Shirt showed that the performance growth was nearly 1.8 times, and "the fair value income of investment properties" reached 319 million yuan, which was a three-fold increase from the same period of last year!
High growth in property investment contribution
On the evening of October 25, the Crocodile Shirt announced its full-year results as of July 31, 2013. According to the announcement, during the reporting period, the company’s revenue decreased by 1.2% to HK$499 million, while gross profit decreased by 7.4% to HK$303 million. However, the “profit attributable to owners of the company for the year†jumped from HK$84.67million in the previous year to HK$237m. The earnings per share also changed from HK$0.09 to HK$0.25.
The reporter noted that "a fair value return on investment properties" has undergone a huge change. The previous year was 77.13 million Hong Kong dollars, and this year's figure was 319 million Hong Kong dollars, an increase of 3.14 times over the previous year!
The company stated that the “property investment and leasing business†segment performance was “very satisfying†with rental income of HK$28.2 million and fair value gains on investment properties of HK$319 million. The reporters found that the main business garment manufacturing "due to difficult operating environment", recorded external customer revenue of 471 million Hong Kong dollars, but the classified profits were -1.04 billion Hong Kong dollars, compared with -11.97 million last year. If it is not such a fair value gain, the company will be able to escape the loss.
Investment income rises year by year
According to the data, the Crocodile Shirt LOGO is a golden crocodile, which is different from the French “Crocodile†and Singapore’s “Cardi Crocodileâ€. This brand was registered by Germans in Hong Kong, China, in 1911. In 1952, the Chinese Chen family took over the crocodile brand and officially named the "crocodile shirt." In 1987, the Chaozhou entrepreneur Lin Baixin bought it for HK$1.3 billion and entered the clothing and leather goods market in the mainland. Lin Baixin founded the Lixin Group and was also Chairman of the Asian Television Board of Directors and President of Honor. The current chairman of the crocodile shirt Lin Jianming has been over for 7 days and is the eldest son of Lin Baixin. The company has been listed on the Hong Kong Stock Exchange since 1971 and owns a number of fashion brands.
The Crocodile Shirts' 2012 annual report shows that the main businesses are “garment and related accessories business†and “property investment and rental businessâ€. During the reporting period, garments achieved revenue of HK$481 million, a slight drop of 2%; and the property was the main part of the overall performance of the group due to “Hong Kong's property market boomingâ€: “Favorable investment property†except for rental income of HK$24.3 million. "Value gains" amounted to HK$77.13 million. In 2011, the fair value gain was HK$76.54 million.
Auditors issued reservations
The reporter also noticed that the independent auditor ShineWing Zhonghe (Hong Kong) Certified Public Accountants Co., Ltd. had issued a reservation on the statement, which was due to the “limitation of the scope of the prepaid rent depositâ€.
Things to start from 2006. The company stated that it entered into an agreement with Zhongshan Hongfeng Real Estate Consulting Services Co., Ltd. (Seller) that the company paid a pre-paid land rent deposit of 14.72 million yuan (seller deposit) for the purchase of land use rights in the Mainland. The company also paid a A company in three townships paid 13.82 million yuan (government deposit).
However, in 2012, the company received a lawyer's suggestion that the company should file a legal action before the end of February 2013 in order to recover the entire deposit. However, the company decided to further negotiate with the local government and the seller to obtain the land use rights certificate in the near future. The company believes that as of the financial year ending in July 2012, there is no need to make an impairment loss for the paid deposit.
However, as of the end of July 2013, after the assessment, the company made a full impairment provision for the seller’s deposit of RMB 14.72 million.
Shin Young and Zhonghe believe that this opportunity is open to question. "Any necessary adjustment to the prepaid government rent deposit at the beginning of the reporting period will affect the relevant disclosure of the reporting period results and the notes to the financial statements."
In addition, ShineWing Zhonghe also believes that the net asset value and annual results announced by the company in its last annual report may not be comparable to this year's figures.
High growth in property investment contribution
On the evening of October 25, the Crocodile Shirt announced its full-year results as of July 31, 2013. According to the announcement, during the reporting period, the company’s revenue decreased by 1.2% to HK$499 million, while gross profit decreased by 7.4% to HK$303 million. However, the “profit attributable to owners of the company for the year†jumped from HK$84.67million in the previous year to HK$237m. The earnings per share also changed from HK$0.09 to HK$0.25.
The reporter noted that "a fair value return on investment properties" has undergone a huge change. The previous year was 77.13 million Hong Kong dollars, and this year's figure was 319 million Hong Kong dollars, an increase of 3.14 times over the previous year!
The company stated that the “property investment and leasing business†segment performance was “very satisfying†with rental income of HK$28.2 million and fair value gains on investment properties of HK$319 million. The reporters found that the main business garment manufacturing "due to difficult operating environment", recorded external customer revenue of 471 million Hong Kong dollars, but the classified profits were -1.04 billion Hong Kong dollars, compared with -11.97 million last year. If it is not such a fair value gain, the company will be able to escape the loss.
Investment income rises year by year
According to the data, the Crocodile Shirt LOGO is a golden crocodile, which is different from the French “Crocodile†and Singapore’s “Cardi Crocodileâ€. This brand was registered by Germans in Hong Kong, China, in 1911. In 1952, the Chinese Chen family took over the crocodile brand and officially named the "crocodile shirt." In 1987, the Chaozhou entrepreneur Lin Baixin bought it for HK$1.3 billion and entered the clothing and leather goods market in the mainland. Lin Baixin founded the Lixin Group and was also Chairman of the Asian Television Board of Directors and President of Honor. The current chairman of the crocodile shirt Lin Jianming has been over for 7 days and is the eldest son of Lin Baixin. The company has been listed on the Hong Kong Stock Exchange since 1971 and owns a number of fashion brands.
The Crocodile Shirts' 2012 annual report shows that the main businesses are “garment and related accessories business†and “property investment and rental businessâ€. During the reporting period, garments achieved revenue of HK$481 million, a slight drop of 2%; and the property was the main part of the overall performance of the group due to “Hong Kong's property market boomingâ€: “Favorable investment property†except for rental income of HK$24.3 million. "Value gains" amounted to HK$77.13 million. In 2011, the fair value gain was HK$76.54 million.
Auditors issued reservations
The reporter also noticed that the independent auditor ShineWing Zhonghe (Hong Kong) Certified Public Accountants Co., Ltd. had issued a reservation on the statement, which was due to the “limitation of the scope of the prepaid rent depositâ€.
Things to start from 2006. The company stated that it entered into an agreement with Zhongshan Hongfeng Real Estate Consulting Services Co., Ltd. (Seller) that the company paid a pre-paid land rent deposit of 14.72 million yuan (seller deposit) for the purchase of land use rights in the Mainland. The company also paid a A company in three townships paid 13.82 million yuan (government deposit).
However, in 2012, the company received a lawyer's suggestion that the company should file a legal action before the end of February 2013 in order to recover the entire deposit. However, the company decided to further negotiate with the local government and the seller to obtain the land use rights certificate in the near future. The company believes that as of the financial year ending in July 2012, there is no need to make an impairment loss for the paid deposit.
However, as of the end of July 2013, after the assessment, the company made a full impairment provision for the seller’s deposit of RMB 14.72 million.
Shin Young and Zhonghe believe that this opportunity is open to question. "Any necessary adjustment to the prepaid government rent deposit at the beginning of the reporting period will affect the relevant disclosure of the reporting period results and the notes to the financial statements."
In addition, ShineWing Zhonghe also believes that the net asset value and annual results announced by the company in its last annual report may not be comparable to this year's figures.
Linen Woven Printed And Dyed Fabric
Pure Linen Dyed Fabric,Linen Cotton Woven Fabric,Linen Rayon Woven Fabric,Linen Ramie Woven Fabric
Shaoxing RongMai Trading Co., Ltd , https://www.rm-fabric.com