Kader triples profit after exceptional gain on sale
AN exceptional gain of $97.5 million helped toy manufacturer Kader Holdings increase profit attributable to shareholders more than threefold for the year ended December 31.
Profit rose to $114 million from $34.2 million in the previous year, while earnings per share were 23.7 cents against 7.5 cents previously. But turnover fell 4.6 per cent to $535.3 million from $561.8 million.
The company's large exceptional item was due to the $112.4 million gained from the disposal of all of its shares and warrants in Kader Investment Co in July last year.
Following the trend, Kader relocated its manufacturing facilities to China last year. The operations have been further streamlined to increase productivity.
Kader's manufacturing facilities have been bolstered by investments in plants in Mexico and Indonesia.
It set up a joint venture with an Indonesian conglomerate to establish a toy manufacturing factory in Jakarta. Another joint-venture manufacturing facility was formed in Mexico last year.
However, these plants lost money in their initial year of operation due to set-up costs.
The company said sales of model trains under the Bachmann brand name grew last year around the world, and marketing of those items in China would start to meet the mainland's demand for toys.
The company will put efforts and resources to expand the distribution and marketing of its own brand name items under Bachmann, Liliput and others.
A stream of steady rental income from the Kader Industrial Building in Kowloon Bay is secured.