RESULTS
OP1
畫
QPL (HOLDINGS) LIMITED
ANNOUNCEMENT OF FINAL RESULTS
The Board of Directors of QPL (Holdings) Limited (“the com- pany") is pleased to announce the audited results of the company for the year ended 30th April, 1988:
1988
1987
$'000
$'000
Turnover
201,201
181,417
====
Operating profit
53,145
54,538
Share of profit of associated
company
1,460
Profit before taxation
54,605
1,241 55,779
Taxation
9,102
Profit after taxation
45,503
Extraordinary item
8,855 46,924 1,817
Profit after taxation and
extraordinary item
45,503
45,107
Retained profits brought forward
16,760
2,253
Total available for appropriation
62,263
47,360
Dividends
28,560
30,600
Capitalisation issue
2,040
Retained profits carried forward
31,663
16,760
Earnings per share
-
Basic
14.9 cents
15.5 cents
=====
=====
Fully diluted by warrants
12.4 cents
DIVIDEND
=====
===
The Board has resolved to recommend at the forthcoming annual general meeting to be held on 22nd July, 1988 the payment of a final dividend of 4 cents per share to shareholders whose names appear on the company's register of members on 22nd July, 1988. This dividend, together with the interim dividend of 4 cents per share already paid in January this year, will make a total distribution of 8 cents per share for the year.
CLOSURE OF REGISTER OF MEMBERS
The register of members of the company will be closed from 15th July, 1988 to 22nd July, 1988, both days inclusive, during which period no transfer of shares will be effected. In order to qualify for the proposed final dividend, all transfer instruments together with the relevant share certificates must be lodged with the company's regis- trars, Standard Registrars Limited, 3rd Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong not later than 4:00 p.m. on 14th July, 1988.
REVIEW OF OPERATIONS
Manufacturing operations
As indicated in my interim statement of 1987/88, the company's strategy is to match, as closely as possible, the latest ad- vance in technology developed by the integrated circuit industry. Hence, considerable emphasis has been put on the development of new functional designs and the production of leadframes of high lead count. Over the last year, the company has successfully started commercial production of leadframes with 124, 160 and 196 leads.
The company's profit growth in the first half of the year was restrained by a longer than expected time lag required for the trans- lation of advance leadframe technology into commercial applications. However, the demand for high end leadframes started to gather mo-
mentum in the latter half of the year which boosted profit contribution by the company's manufacturing operations considerably.
During the year, demand from the United States market re- mained strong and the response to our marketing efforts in Europe and Taiwan has been encouraging so far. Your directors are confident that the volume of business with these countries will continue to grow in the coming year.
Acquisition of industrial property
The company has recently entered into agreements to acquire a 24-storey industrial building, which will be renamed QPL Industrial Building, situated at 126-140 Texaco Road, Tsuen Wan.
The building has a gross floor area of approximately 495,000 sq. ft. and parking spaces for 10 lorries and 40 cars. The company plans to relocate all its existing administrative and manufacturing operations from its exist- ing leased properties to the industrial building by the end of Septem- ber this year. These operations will occupy approximately 80,000 sq. ft. and the remaining floor space will be held for investment purposes. The directors believe that significant operational advantages will be achieved by housing the entire operations under this new industrial building while the remaining floor areas will generate a steady stream of income in the future.
Group reorganisation
The acquisition of the industrial building mentioned above represents a substantial investment in the local property sector by the company. The directors believe that significant benefit will be achieved by rationalising the present group structure so that it will act as a holding company while its property investment and leadframe manufac- turing operations will be carried on by different subsidiaries and asso- ciated companies. The reorganisation has now been completed follow- ing the transfer of all the existing manufacturing operations together with all assets and liabilites to a wholly owned subsidiary, QPL Limited.
Rights issue
The company announced on 21st June, 1988 that the rights issue of 102,000,145 new shares at a price of $0.70 per share had been oversubscribed. Out of the net proceeds of approximately $68.3 million from the rights issue, your directors intend to apply approximately $40 million to finance the acquisition of the industrial property in Tsuen Wan and the balance as working capital for the expansion of the company's leadframe operations.
PROSPECTS
Following the completion of the rights issue, your directors believe that the group is now well placed to furthur consolidate and expand its leadframe manufacturing operations. In view of the high utilisation rate of existing plant and equipment and in order to cope with the prospective increase in market demand, the group plans to strengthen and upgrade its production facilities by making a capital investment of over $10 million in advanced computer-aided machines. As a result of the continuous growth and diversification of the group's business, your directors are confident that the current year will again be a successful one for the company.
Finally, on behalf of the board, I take this opportunity to thank all employees for their dedication and devotion over the year, and look forward to their continuous support.
Hong Kong, 22nd June, 1988
Li Tung Lok Chairman
No comments yet.
Private notes are available after approval.