| The directors recommended the payment of a final dividend for the
financial year ended 31 March 2011 of HK0.10 cent per share (2010:
HK0.08 cent), subject to the approval by the shareholders of the
Company at the forthcoming Annual General Meeting.
Hong Kong’s economy continued to improve steadily in 2010. The
GDP growth in Mainland China and Hong Kong also supported the
economic recovery. The demand for printing products from external
buyers maintained stable growth, which was mainly stimulated by the
constant momentum of the global economic recovery.
During the period under review, the Group’s printing business
recorded a satisfactory profit by successfully controlling its costs.
Although the profit margin of the printing business has decreased due
to the impact of persistently rising inflation and labor cost, the Group
has upheld “Green Production” as our direction in the future. We
will continue to increase our investment in “Green Production” and
promote the development of green products.
To tackle the impacts of rising costs, the management will continue
to increase production efficiency, improve product quality, focus on
employees’ training and develop products with higher added values.
Every year, the Group regularly invited professionals to train our
employees. In addition, we are also constantly importing new printing
machines and expanding the production lines with a view to achieving
“total quality management”. Another important achievement is the
adjustment of the customer base of the printing business in order to
realize diversification, which included expanding Mainland China’s
domestic market, efforts in expanding our share in the green product
market, developing new products and seeking potential customers
from new overseas markets such as Russia, Middle East and South
America.
As to the entertainment business, the Group recorded a stable
growth in the financial year. For example, we hosted more concerts
and shows such as “Neway Music Live 2010 – Hot Stars Party”
and “2011 – Chi Lam in Concert”. Return from the entertainment
business gradually improved. In particular, the artiste management
segment recorded extraordinary results. During the period, the Group
successfully promoted the brand and reputation of our artistes and
the entertainment business in general.
We successfully added a new member, i.e. Stephanie, Cheng Yung,
a popular and famous artiste/singer, to Star Entertainment (Universe)
Limited (“SEU”) in December 2010. In addition, we signed a
cooperation agreement with a Taiwan entertainment company that
covers Michael Wong, one of their artistes. These newcomers will
certainly benefit the Group. In August 2010, SEU also entered into a
Sales and Distribution Agreement with JV Entertainment Productions
Ltd. Pursuant to the Agreement, SEU is appointed as the worldwide
sole and exclusive distributor. It owns various brands such as Crown
Record and JVE. The collaboration created new competitive edges for
both parties and achieved a “win-win” combination.
The Group will continue to focus on opportunities in Mainland
China so as to add value to our entertainment business. “The Great
Rescue”, a TV series in Mainland China jointly invested by the Group
and shot in collaboration with CCTV, has already been broadcasted
and was highly praised. The relevant income will be reflected in the
results for the year 2011/2012. The second TV series produced with
CCTV, namely “Shot Hole”, has also been broadcasted in June 2011.
We believe our business relationship with CCTV will bring synergy and
benefits to both parties.
Looking forward, the Group will continue to develop the
entertainment business and diversify into new areas. We will
introduce new elements with high values, achieve synergy and provide
stimulus to the entertainment business.
Finally, I would like to express my heartfelt appreciation to our
employees for their contributions to the Group. I would also like to
express my deepest gratitude to our shareholders and investors for
their support. We will continue to create value and make contribution
to the Group as our vision is “to be the most valued and innovative
leader in the selected fields we serve”, which has also been our motto
that encourages all of us.
SUEK Ka Lun, Ernie
Chairman
Hong Kong
29 June 2011 |