Written by The Edge
Heng Long International, the tannery of crocodilian leather, says it posted a net profit after tax of $1.1 million for the three months ended 30 June 2010 (2Q10), up 173.5% from $0.39 million in 2Q09.
Heng Long attributes the improvement to increased sales arising from the overall improvement in the global luxury goods industry. Group revenue in 2Q10 increased 63.1% to $12.8 million from $7.9 million in 2Q09.
As a result of higher revenue and better sales mix, gross profit increased to $3.4 million in 2Q10 from $1.6 million in 2Q09, signifying a stark improvement in gross profit margin to 26.6% in 2Q10 from 20.5% in 2Q09.
Due to better working capital management, the group recorded an operating cash flow of $2.6 million in Q210, a positive turnaround from Q209. As a result of increased sales, inventories decreased to $83.6 million as at 30 June 2010 from $87.4 million as at 31 December 2009. Cash and bank balances improved to $7.0 million as at 30 June 2010 from $6.2 million as at 31 December 2009.
Cumulatively, the group registered a 52.4% increase in revenue to $23.8 million in H110 from $15.6 million in H109, and a 26.0% increase in net profit after tax to $2.0 million in H110 from $1.6 million in H109.
Dividend : None
