Management Discussion Analysis Sample Clauses

Management Discussion Analysis. During the six months ended 31 December 2001, the Group’s business activities were organized into two operating units and one corporate cost centre. Profit (loss) Turnover before taxation 2001 HK$’000 2000 HK$’000 2001 HK$’000 2000 HK$’000 Manufacturing 387,989 410,840 43,133 38,341 Distribution 14,440 15,404 (1,082) (409) Corporate – – (12,677) (17,375) Total 402,429 426,244 29,374 20,557 The prolonged global recession, exacerbated by the 9.11 disaster in the U.S., has had a dire effect on business. Both operating units weathered through probably the most difficult period that was unseen before in the recent years. Our plants capacities were barely 85% filled, and despite the relatively stable consumer market in China, retailing business in Hong Kong and Taiwan continued to suffer from the down-turned economy, resulting in a decrease in both sales and earning performance as compared with the correspondent period in the previous year. Total profit before taxation, on the other hand, was up 43% to HK$29.4 million. The improvement in earning was due to a HK$10.4 million of non-operating profit on the deemed disposal of the Group’s interest in Elastex which is addressed below. In November, we completed a transaction by which we disposed 40% interest of Elastex, previously a wholly owned subsidiary of the Group producing elastic materials, to an independent party specialized in procurement and distribution of apparel materials. The move bears strategic significance in the Group’s future growth. The sales proceeds would entirely be reinvested in Elastex for expansion of capacity and broadening of sales to third party users through the existing distribution network established by the new equity partner.

Management Discussion Analysis. Contemporaneously with the financial statements delivered pursuant to subparagraphs (a) and (b) above, a copy of the current management discussion and analysis.