Tuesday, January 19, 2021
Martin Hennecke
HKEx Stock Code : 00036 
Corporate Profile
Principally engaged in manufacturing and sale of garments; provision of aviation maintenance services by a jointly controlled entity; and property investment.

Business Review - For the year ended December 31, 2012

The Company continued to face challenges during 2012 for both existing operations as well as expansion efforts. Consumer confidence around the world is still at a low point hence businesses are overly cautious on factory orders to keep a lean inventory. Cost and timing of industries will continue to play a key part in coming years.

Due to economic and political issues in the PRC, risk factors in investments as well as industries are faced with higher risks and higher market volatility. In the PRC business sectors that were once thought lucrative, changing policies, slower growth rate and higher inflationary pressure are changing future outlook. Investment decisions are becoming more price and time sensitive. Hence investments with good returns are more scares and valuable.

Garment Industries

Jiangsu BangBang-Silky Fashion Manufacturer Co., Ltd. (Ħ§JBBĦ¨)

For the year ended 31st December, 2012, JBB reported a turnover of approximately HK$17.05 million (2011: HK$21.64 million), representing approximately 21.21% decrease comparing with 2011. It reported a net loss of approximately HK$2.68 million (2011: net profit of approximately HK$89,000) incurring a loss comparing with 2011.

Factory order for JBB has declined due to an adverse economy in Japan that was further damaged by a massive earthquake in 2011. Efforts in Europe and US are also met with great challenges due to their financial crisis. Coupled with a rising cost structure and increasing price competition around the world, JBB is in the process of finding a structural solution involves strategic changes at all levels, and finding a business structure that will improve the efficiency, cost and time to market.

Aviation Holdings

Beijing Kailan Aviation Technology Co., Ltd. (Ħ§Beijing KailanĦ¨)

During the year, net profit of Beijing Kailan is estimated to be HK$7.77 million (2011: HK$3.24 million), representing approximately 139.81% increase over that of 2011.

Despite slower GDP growth projection, Beijing Kailan is expected that demand for aviation maintenance services remains stable in 2013. However, increasing price competition and high costs will continue to be the main concerns in the industry.

Business Outlook - For the year ended December 31, 2012

The Company understands the need to strengthen its business portfolio with businesses that can provide better recurring income, but remains cautious in evaluating business opportunities as well as managing continuing operations under the current economic environment. Therefore, the management is making strategic changes to increase the Company's ability to make better and faster investment decisions. This includes actively changing how the management evaluate current businesses and future opportunities, and streamlining operations to increase efficiency.

Source: Far East Hldgs Int'l (00036) Annual Results Announcement
Chairman Deacon Te Ken Chiu Issued Capital (shares) 454M
Par Value HKD 0.01 Market Capitalisation (HKD) 127M
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