利民实业有限公司.pdf

RAYMOND Industrial Ltd. Annual Report 2004 Chairman’s Statement OPERATION RESULT In 2004, the Group achieved record turnover. However, both electrical appliances business and cigarette paper business suffered a decline in gross profit margin because of continued escalating commodity prices. Nevertheless, the Group was able to offset most of the PM3PM4 reduction in margin by increase in productivity, better waste management and tighter overhead control. The cigarette paper business has also suffered operating losses from the new paper machines (PM3 and PM4) because of a delay in ramping up to full production. Despite the reduction in profit from the core businesses and the initial losses from the new paper machines, we benefited from a rebounding Hong Kong real estate market and our investment properties has appreciated in value substantially. For the financial year ended 31st December 2004, the Group’s consolidated turnover was HK$1,069 million compared with HK$805 million in the previous year, representing an increase of 32.8% in turnover. Sales of electrical appliances/consumer and environment products increased 41.3% compared with that of the previous year. In 2004, our Group successfully diversified into consumer products verses our traditional personal care and small kitchen appliances. The most successful