Press Release

23 Aug, 2015
Interim Revenue Surges 46.2% to HK$1.245 Billion Basic Earnings per Share Increases 89% to HK2.19 cents Credits to the Positive Performance in Product Diversification
  For the 6 months ended 30 June (HK$’000)
Financial Highlights 2015 2014 Change
Revenue 1,245,170 851,768 +46.2%
Gross Profit 527,661 266,309 +98.1%
Net Profit 438,390 175,934 +149.2%
Basic earnings per share 
(HK Cents) 1
2.19 1.16 +88.8%
Interim Dividend per share (HK Cents)1 0.6 0.5 +20%
 

(Hong Kong, 23 August 2015) Hang Fat Ginseng Holdings Company Limited (“Hang Fat Ginseng”, together with its subsidiaries, the “Group”, Stock Code: 911), the world largest first-level American ginseng wholesaler, announces its interim results for the six months ended 30 June 2015 (the “Period”).

During the Period, the Group recorded an alarming increase of 46.2% in revenue to HK$1,245,170,000 as compared to the corresponding period last year (2014: HK$851,768,000). The increase was mainly contributed by the positive results from the Group’s business strategy of product diversification. Gross profit amounted to HK$527,661,000 (2014: HK$266,309,000), representing an annual increase of 98.1%. The Group’s net profit raised 149.2% to HK$438,390,000 (2014: HK$175,934,000). Basic earnings per share were HK2.19 cents for the Period, representing an increase of 88.8% (2014: HK1.16 cents1). The Board proposed an interim dividend of HK0.6 cent (2014: 0.5 cent1)

Revenue of the Group’s main products: Cultivated Ginseng, Wild Ginseng, Ginseng Wine 
Market demand for American ginseng continues to grow, revenue from cultivated ginseng increased approximately 23% as compared to last year to HK$944,545,000 (2014: HK$768,171,000), representing 75.9% of the Group’s revenue for the interim period (2014: approximately 90.2%). Ginseng wine is a new product introduced by the Group during the Period, it recorded a revenue of HK$260,464,000 due to satisfactory sales performance during the first half of the year. Wild ginseng and other products recorded revenue of HK$38,469,000 and HK$1,692,000 respectively. Nonetheless, benefiting from the satisfactory sales performance of the high gross profit item, ginseng wine, the Group’s net profit for all products surged 98.1%.

Mr. Yeung Wing Yan, Chairman and Chief Executive Officer of Hang Fat Ginseng, said, “The Group will focus its resources on product diversification and retail operation, targeting to expand the existing six product lines so as to capture a wider range of target markets, namely, wholesale operation, food products, health food, proprietary Chinese medicines, skincare as well as ginseng wine. The Group is going to launch a whitening skincare product with ginseng ingredients named “Ginsenova” in September with a set of promotion activities and public advertisements. In the coming future, there will be a number of skincare products by Hang Fat Ginseng showcasing in various pharmacies in Hong Kong. Nevertheless, the Group will increase its exposure and operation models in Mainland China and other foreign countries. At the time being, the Group is penetrating the Chinese market, we are preparing for the launch of our flagship store in Beijing whilst looking for an ideal location for our Shanghai store.”

Note: 1 Taken into Account the Effect of the Share Subdivision, Share Subdivision whereby every one existing issued and unissued Share of par value of HK$0.01 each in the share capital of the Company is subdivided into ten Subdivided Shares of par value of HK$0.001 each. Please refer to the company announcement on 21 April 2015 for details.

 
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