Q P Group’s 2022 Net Profit Up 6.5% to HK$126.8 Million
HONG KONG, Mar 30, 2023 – (ACN Newswire via SEAPRWire.com) – Q P Group Holdings Limited (“Q P Group” or the “Group”; Stock code: 1412), one of the leading manufacturers of paper-based tabletop games and greeting cards in the People’s Republic of China (the “PRC”), today announced its annual results for the year ended 31 December 2022 (“FY2022” or the “Reporting Period”).
In FY2022, the Group recorded a net profit of approximately HK$126.8 million, representing an approximately 6.5% year-on-year increase, benefiting from the improvement in gross profit margin as a result of the depreciation of Renminbi against Hong Kong dollars, and the saving in transportation expenses in relation to the web sales business. The net profit margin increased to approximately 9.9% for the Reporting Period from approximately 8.6% for the year ended 31 December 2021 (“FY2021”), while the Group’s revenue amounted to approximately HK$1,276.4 million (FY2021: approximately HK$1,389.8 million). Basic earnings per share was approximately HK23.84 cents (FY2021: HK22.38 cents).
The Board of Directors has proposed a final dividend of HK11.0 cents per share (FY2021: HK11.0 cents) for FY2022. Together with the interim dividend of HK3.0 cents (FY2021: HK2.0 cents) already paid, the total dividend for FY2022 will be HK14.0 cents (FY2021: HK13.0 cents).
In FY2022, the slower growth in major economies, coupled with factors such as interest rate hikes and inflationary pressures, weakened consumer purchasing power and consumption sentiment. The demand for tabletop games was affected by the lifting of epidemic control measures and the resumption of outdoor and mass activities as the COVID-19 pandemic receded. In addition, certain OEM customers adjusted their procurement strategies to digest inventory. To cope with the challenging market environment, the Group adopted diversified growth strategies to develop new customers and proactively offer diverse manufacturing solutions to its existing customers. Consequently, revenue from OEM sales amounted to approximately HK$1,082.7 million for FY2022 (2021: approximately HK$1,191.0 million).
In terms of web sales business, the Group launched Q P Market Network (“QPMN”), a business-to-business-to-consumer online platform that provides business partners with one-stop e-commerce solutions for customised products, in the second quarter of 2022. The Group devoted efforts to optimising its website infrastructure and services to address a wider range of market needs and promote its competitiveness. QPMN has established partnerships with a number of local enterprises and designers, including retailers with large sales networks and customer bases. The Group also launched several crowdfunding projects on international online crowdfunding platforms to boost product sales and brand awareness in the marketplace. During FY2022, revenue from web sales amounted to approximately HK$193.7 million (FY2021: approximately HK$198.7 million).
During the Reporting Period, the Group officially commenced the construction of its self-owned production plant in Vietnam, while initiatives for pursuing Industry 4.0 maturity level 2i were implemented in its Dongguan plant to push forward smart operation further. It conducted targeted reviews and analyses of various operating and production costs, and formulated and implemented efficiency and cost optimisation measures, resulting in significant improvements in these areas.
Looking ahead, the Group will strengthen its online and offline marketing activities, such as launching more crowdfunding projects for its online sales brands, participating in exhibitions to promote products and services, and sponsoring events related to products to further increase the Group’s brand exposure and popularity in the market. QPMN will focus its business development on local and overseas enterprises and organisations and OEM customers. At the same time, the Group will expand QPMN’s customised solutions and provide business partners and their end customers with more innovative customisation solutions that meet market needs.
In terms of the OEM business, the Group will proactively explore business opportunities with existing and potential customers to create win-win partnerships with competitive service quality and pricing. Leveraging its production capabilities and brand reputation for card products, the Group looks to actively develop the domestic market for premium card products in the PRC to capture its market potential and diversify the Group’s OEM business. To facilitate business development, the Group will expand its internal research and development capabilities so as to provide OEM customers with more product options to meet different market demands.
The Group will consistently implement strategic expansion and continuous improvement in order to consolidate its competitiveness. The Vietnam plant is expected to commence operation in the second half of 2023 and will provide OEM customers with an additional geographical manufacturing option. The Group also intends to develop other third-party production sites and connect them to its online platforms through its smart operations network system to consolidate a more comprehensive and digitalised supply chain that maximises the benefits of the intelligent operations network and expands its product options.
Mr. Cheng Wan Wai, Founder, Chairman and CEO of Q P Group concluded: “While the global pandemic continues to subside, the manufacturing sector is expected to face numerous uncertainties in 2023 amid concerns over geopolitical situation and sluggish global economic growth. With our solid business, operational and financial foundations, and our years of experience and ability in coping with adversity and challenges, we remain cautious about the Group’s prospects. We will steadfastly implement various short and long-term development and operations strategies, keep our finger on the pulse of the latest market changes and respond in an agile manner in order to maintain profitability. We look forward to the completion of the construction of our new plant in Vietnam, which will play a substantial strategic role in the development of our entire supply chain and business. In addition to expanding production capacity, improving efficiency and reducing costs are also priorities for us. In today’s challenging and competitive environment, it is particularly important to apply technology appropriately and integrate it into our operations to improve our efficiency, capabilities and corporate competitiveness. We will continue to implement various development and optimisation projects in our plants to pursue the smart operation network.”
About Q P Group Holdings Limited (Stock code: 1412)
Established in Hong Kong in 1985, Q P Group is one of the leading paper-based tabletop games and greeting cards manufacturers in the PRC, with production sites in Dongguan and Heshan. Its principal product categories include tabletop games, greeting cards, educational items and premium packaging. Since 2010, the Group has been operating web sales businesses to provide online solutions for diversified customised paper products and gift items. Currently, the number of its active registered users has reached over 57,000.
Q P Group’s major websites are:
Q P Market Network: www.qpmarketnetwork.com
For more information, please visit: https://www.qpp.com/
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