Chairman¡¯s Statement
and Operations Review
Dear Shareholders,
It is my pleasure to present to you Old Chang Kee¡¯s (the ¡°Company¡± or ¡°Old
Chang Kee¡± and together with its subsidiaries, the ¡°Group¡±) Annual Report
and the Group¡¯s results for the financial year ended 31 March 2016.
Revenue
The Group¡¯s revenue increased from approximately S$71.6 million for the
financial year from 1 April 2014 to 31 March 2015 (¡°FY2015¡±) to approximately
S$73.9 million for the financial year from 1 April 2015 to 31 March 2016
(¡°FY2016¡±), an increase of approximately S$2.2 million or 3.1%.
Revenue from retail outlets increased by approximately S$2.4 million or 3.4%.
The increase in revenue was mainly due to incremental revenue from new
outlets and higher revenue from existing outlets, offset by the absence of
revenue from outlets that were temporarily closed due to mall revamps.
Revenue from other services, such as delivery and catering services, decreased
by approximately S$180,000 or 14.6%.
As at 31 March 2016, the Group operated a total of 83 outlets in Singapore as
compared with 82 outlets as at 31 March 2015.
The Group¡¯s signature puff products remained the major contributor to its
revenue and accounted for approximately 31.6% of the Group¡¯s revenue in
FY2016, as compared with approximately 31.8% in FY2015.
Cost of sales and gross profit
The Group¡¯s gross profit increased by approximately S$2.0 million or 4.4%.
The Group¡¯s gross profit margin increased slightly from approximately 62.4% in
FY2015 to 63.1% in FY2016 due to tighter cost control over raw material costs
and an improvement in product mix.
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