Financial Statement - Aztech Group Ltd - Investor Relations

Results for 1Q2012
Revenue
Turnover of the Group for 1Q2012 increased by 59.6% to $69.88 million over the same period last year which was
attributable to the contract of supplying infrastructure materials. The Electronics revenue was decreased by 16.6%
to $34.84 million due to weaker demand from customers.
The gross profit grew by 85.6% to $5.65 million in 1Q2012 (1Q2011: $3.04 million) and the gross profit margin
increased to 8.1% in 1Q2012 compared to 7.0% in 1Q2011. The increase was attributable to the varying customer
and product mixes in Electronics segment and improvement in Materials and Marine segment.
Other operating income increased from $0.91 million in 1Q2011 to $2.91 million in 1Q2012, arising mainly from
the foreign exchange gain of $1.89 million.
The total operating costs rose by 11.0% to $6.06 million (1Q2011: $5.46 million) mainly due to the increased
general administrative expenses.
Net profit attributable to shareholders for the period was $2.02 million, compared to net loss of $21.01 million in
the previous year. Earnings per share for 1Q2012 were recorded at 0.42 cents (1Q2011: Loss per share: 4.30 cents).
Financial Resources
As at 31 March 2012, the Group has net current assets of $26.70 million, total assets of $157.46 million and
shareholders’ funds of $80.27 million. During the period, the Group generated positive cash inflow of $2.11 million
(1Q2011: $3.09 million) from operations.
The cash and bank balances reduced by 27.2% primarily because of net repayment of bank borrowings of $10.87
million and purchase of investment bond of $1.00 million. The total bank borrowings reduced by 22.3% to $43.56
million while other financial assets increased by 101.0% to $1.99 million as at 31 March 2012.
The overall financial position of the Group remained sound with a current ratio of 1.4 (FY2011: 1.3) and net
gearing of 0.2 (FY2011: 0.2). With cash balance of $29.06 million together with anticipated cash flow from
operations and borrowings available under existing credit facilities, the Group will have sufficient funds to support
its operations and capital expenditure requirements.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance
between it and the actual results.
The 1Q2012 financial results are in line with the prospect statement made in 4Q2011 announcement dated 14
February 2012.
10. A commentary at the date of the announcement of the significant trends and competitive conditions of
the industry in which the group operates and any known factors or events that may affect the group in the
next reporting period and the next 12 months.
The overall global economy remains challenging. The currency fluctuation, increasing oil price and costs pressure
will remain a recurring theme for 2012.
Barring any unforeseen circumstances, the Group is cautiously optimistic of opportunities and growth in the LED
lighting industry and infrastructure materials supply market.
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