Vincent Medical Holdings Limited (“Vincent Medical” or together with its subsidiaries, the “Group”, stock code: 1612) has announced its annual results for the year ended 31 December 2018 (the “Year”).
Driven by improved sales in both original equipment manufacturing (“OEM”) and original brand manufacturing (“OBM”) segments, the Group’s total revenue increased by 9.3% to HK$488.0 million for 2018 (2017: HK$446.3 million). However, the aggregate effect of rising of labour costs, increasing price of raw materials for production and the appreciation of RMB against USD during the Year has more than offset the positive contribution to the Group’s gross profit margin through the enhancement of production efficiency. Thus, gross profit rose by 3.5% to HK$155.6 million for 2018 (2017: HK$150.3 million). Gross profit margin for 2018 decreased by 1.8 p.p. from 33.7% to 31.9%. Despite the drag on gross profit margin, profit attributable to owners of the Company for 2018 increased by 134.1% to HK$30.9 million (2017: HK$13.2 million). The increase was mainly due to an overall increase in revenue and gross profit from both OEM and OBM segments, and a year-on-year decrease in impairment of goodwill and investment in an associate. Basic earnings per share was HK$4.85 cents (2017: HK$2.06 cents) for the Year. To reward shareholders for their continuous support, the Board recommended the payment of a final dividend of HK1.6 cents per share, representing a healthy dividend payout of 33.0%.