Posted by Jimmy Song > 2015-02-27 09:39 | Report Abuse

KANGER REPORTS RM7 MILLION PAT FOR FYE2014 KUALA LUMPUR, 26 FEBRUARY 2015 – Kanger International Berhad (“Kanger” or the “Group”), a global integrated bamboo product manufacturer and supplier has announced its fourth quarter results for its financial year ended 31 December 2014 (“Q4FYE14”) with revenue of RM19.68 million, representing an increase of 17.52% as compared to RM16.74 million in its corresponding quarter ended 31 December 2013 (“Q4FYE13”). The Group also delivered a profit before tax (“PBT”) and profit after tax (“PAT”) of RM1.82 million and RM1.92 million respectively. In terms of the Group’s segmental performance, Kanger’s horizontal and vertical bamboo flooring segment remains as the Group’s key profit contributor with revenue of RM10.55 million, representing 53.61% of its total revenue for the quarter under review. The Group’s strand woven bamboo products and strand woven bamboo flooring segments recorded revenue of RM4.83 million and RM4.30 million respectively. In terms of the Group’s full year financial performance for its financial year ended 31 December 2014 (“FYE2014”), Kanger reported revenue of RM66.72 million, representing an increase of 32.96% as compared to FYE2013. The growth in revenue was largely contributed by an increase in foreign sales amounting to a total of RM44.65 million for FYE2014. The Group’s PAT of RM7.02 million also represented a 41.48% increase compared to RM4.96 million reported for FYE2013. Kanger has been delivering a steady revenue growth over the last two years with a 2-years compounded annual growth rate (CAGR) of 31.55%. The Group’s net gearing ratio as at 31 December 2014 stands at 0.1 times. “The management and I remain optimistic for the future of bamboo flooring market in China as it is expected to grow to RMB5.04 billion (RM2.88 billion) by 2017. So, we are looking to further leverage on this industry potential moving forward,” commented Mr. Leng Xingmin, Group Managing Director. On 2 January 2014, Kanger entered into a conditional subscription agreement with Advance Opportunities Fund and Advance Capital Partners Pte. Ltd. for the proposed issuance of Redeemable Convertible Notes (“RCN”). The proposed RCN will involve the issuance of an aggregate principal amount of up to RM100 million RCN in four (4) tranches with multiple sub-trances in each tranche. The proposed RCN will mature on a date falling five (5) years from the closing date of the first sub-tranche for the first tranche. The proceeds raised from the proposed RCN will be used to fund the expansion of dealerships, acquisition of land and construction of a commercial building pursuant to the Group’s proposed diversification into property investment and management. As at 5 February 2015, Kanger has also submitted an application to Bursa Malaysia Securities Berhad for the admission of the Warrants to the Official List of the ACE Market of Bursa Malaysia Securities Berhad and the listing of and quotation for the Warrants and new Kanger Shares arising therefrom.