The Group?s sales rose by 13.9% to HK$450.2 million. The Group?s profit for the year leapt

by 69.6% to HK$33.5 million due to the Group?s expansion plans and lower costs.

The Group?s gross profit rose by 38.4% to HK$86.9 million while cost of sales increased by a

lower 9.3% to HK$363.3 million due to lower plastic prices, lower production cost as well as

the improvement in sales mix. The Group also achieved greater economies of scale as it

boosted its subcontracting factory for production in Taiwan. As a result, gross margin rose by

3.4 percentage points to 19.3%.

Other income rose to HK$16.0 million from HK$1.4 million the year before, primarily due to

sundry income of HK$12.9 million from the leasing of machinery to subcontracting factories

for production. The Group?s general and administrative expenses rose by 50.9% to HK$31.4

million, in tandem with the increase in business activities. Finance costs rose by 58.9% to

HK$29.4 million due to one-time charge relating to the restructuring of the Group?s

borrowings and increase in borrowings. The Group?s income tax expenses rose by 68.6% to

HK$8.6 million in line with profit growth.

The Group?s asset base rose by 16.0% to HK$672.7 million primarily due to a HK$102.2

million increase in property, plant and equipment in both Hong Kong and Taiwan. To

support the higher asset base, the Group?s borrowings rose by 22.0% to HK$299.4 million.

The Group generated a positive cashflow (of HK$96.1 million) at operating level.

The Group?s basic earnings per ordinary share were 11.16 HK cents. The Group?s net asset