Annual Report 2015
Karin Technology Holdings Limited
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OTHER INCOME AND GAINS, NET
Other income and gains, net decreased by HK$2.9 million
or 38.7%, from HK$7.5 million for the year ended 30
June 2014 to HK$4.6 million for the year ended 30 June
2015. The decrease was mostly due to exchange gain of
HK$2.9 million in last year turned into losses of HK$0.2
million during the year under review which was recorded
under “Other expenses, net”.
SELLING AND DISTRIBUTION COSTS
Selling and distribution costs increased slightly by HK$2.7
million or 3.4%, from HK$80.3 million for the year ended
30 June 2014 to HK$83.0 million for the year ended 30
June 2015. The increase was mainly due to increase in
bonus of HK$4.7 million for sales staff because of profit
improvement and offset by decrease in rental expenses of
HK$1.5 million as a result of reduction in the number of
CEP retail shops from 6 to 4 during the year under review.
ADMINISTRATIVE EXPENSES
Administrative expenses increased by HK$9.6 million or
11.0%, from HK$87.2 million for the year ended 30 June
2014 to HK$96.8 million for the year ended 30 June
2015. The increase was mainly due to (1) increase in
depreciation charge of HK$4.1 million which was in turn
due to appreciation of property values for leasehold land
and buildings; (2) increase in staff bonus of HK$4.1 million
due to profit improvement; and (3) increase in staff salary
of HK$1.3 million in line with the market.
OTHER EXPENSES, NET
Other expenses, net increased by HK$3.1 million, from
HK$0.2 million for the year ended 30 June 2014 to HK$3.3
million for the year ended 30 June 2015. The change was
mainly due to increase in impairment of trade receivables
by HK$2.9 million.
FINANCE COSTS
Finance costs decreased by HK$0.1 million or 3.8%, from
HK$2.0 million for the year ended 30 June 2014 to HK$1.9
million for the year ended 30 June 2015.
NET PROFIT
Net profit attributable to owners of the Company increased
by HK$25.5 million or 67.9%, from HK$37.4 million for the
year ended 30 June 2014 to HK$62.9 million for the year
ended 30 June 2015. The increase was mostly attributable
to increase in gross profit offset by increase in depreciation
expenses and staff bonus.
NON-CONTROLLING INTERESTS
Non-controlling interests represent the non-controlling
shareholders’ share of profit in our non-wholly owned
subsidiaries.
