HONG KONG -Nature Flooring Holding Company Limited ("Nature Flooring" or the "Company", together with its subsidiaries, the "Group"; HKEx Stock Code: 2083), announced its annual results for the year ended 31 December 2013.
During the year under review, the Group achieved encouraging financial results with revenue increased by 33.2% to approximately RMB1.489 billion, mainly attributable to the increased domestic demand on the Group's branded wood products and increased demand on the Group's flooring products in the United States ("U.S."). Gross profit surged 41.2% to approximately RMB501 million.
Profit attributable to equity shareholders reached RMB138.1 million, representing an increase of 12.5% year-on-year. A total of approximately 22.87 million square meters of flooring products were sold in 2013 (2012: approximately 18.00 million square meters), representing an increase of 27.0%. Earnings per share amounted to RMB0.093, up by 13.4% year-on-year. The Board of Directors (the "Board") recommended a final dividend of HK$0.025 (2012: HK$0.023) per share for the year ended 31 December 2013.
Mr. Se Hok Pan, Chairman and Executive Director of Nature Flooring stated, "In 2013, we further strengthened our brand building and sales efforts and strived for international market expansion. The Group expanded its presence by establishing various sales channels in the U.S. market and reported a significant growth in overseas business. As a result of effective marketing strategies, our flooring business regained growth in the year under review."
Manufacturing and Sale of Wood Products
During the year, turnover of the Group's manufacturing and sale of wooden products has increased 22.8 % to approximately RMB991 million, mainly attributable to the continued recovery of the Group's flooring business and increased sales in flooring products.
The Group has successfully developed a solid and extensive sales network. The Group has 1,917 "Nature" stores, 1,130 "Nature No.1 My Space" stores, 155 "Nature Aesthetics" stores and 71 foreign imported brand stores as at 31 December 2013, amounting to 3,338 stores in total.
The Group will continue to focus on the development in the business of wooden doors, wardrobes and cabinets with the "Nature" brand and keep on implementing the strategy of integrating household products and enhancing household brand, in order to maximize the efficiency in sales after completion of infrastructures of the related business.
Trading of Timber and Wood Products
For the overseas market, the recovery of the global economy, especially the economy of the U.S., has created a favourable environment for the development of the Group's business. The Group's subsidiaries located in the U.S. have enhanced the Group's business development by establishing additional sales channels, which drove a significant growth in the Group's turnover for the trading of wood flooring products in the U.S. The Group's trading business of timber and wood products has contributed approximately RMB262.7 million during the year, representing an increase of 94.3% as compared to approximately RMB135.2 million in 2012.
Chairman Se said, "We look forward to further broadening our network coverage and business development in international markets and seeking to capture opportunities in overseas expansion. We will continue to strengthen our competitiveness and foothold in the PRC market. Meanwhile, we plan to establish a professional online and offline O2O operating platform for household industry, providing one-stop solution for home decoration for our consumers. We will also continue our market researches in a green, healthy and environmentally-friendly direction, aiming to provide integrated solutions and wonderful life experiences to our consumers worldwide. As one of the largest wood flooring brands in China, we have full confidence in the future of our business and we will continue to reinforce our leading position in the industry to create value for our shareholders."
About Nature Flooring Holding Company Limited
Nature Flooring is the largest wood flooring brand in China in terms of market share by retail sales value of branded wood flooring products. According to an industry report of China's flooring market conducted by an independent global market research and consulting company (the "Industry Report"), the Group's "Nature" branded products accounted for 7.0% market share in terms of China's total retail sales value of branded wood flooring products in 2011. The Group's branded products are manufactured through a combination of its own manufacturing facilities and exclusive authorized manufacturers.
According to Industry Report, in 2011, the Group's branded products ranked second in laminated flooring, first in multi-layered engineered flooring and first in solid wood flooring, each in terms of both the market share of retail sales volume and retail sales value in China. The Group is the only company to achieve a top two market share position across the three primary wood flooring product categories in China in 2011. Leveraging its strong brand, extensive distribution network, comprehensive product portfolio and flexible manufacturing model, the Group grew rapidly and gained market share in China from 2008 to 2011.
SOURCE Nature Flooring Holding Company Limited
Have something to say? Share your thoughts with us in the comments below.