Download - Li & Fung

More documents

Recommendations

Info

CORPORATE INFORMATION NON-EXECUTIVE DIRECTORS Victor FUNG Kwok King, Honorary Chairman Paul Edward SELWAY-SWIFT* Allan WONG Chi Yun* Franklin Warren McFARLAN* Martin TANG Yue Nien* Benedict CHANG Yew Teck FU Yuning* * Independent Non-executive Directors GROUP CHIEF COMPLIANCE OFFICER Srinivasan PARTHASARATHY COMPANY SECRETARY Terry WAN Mei Chow LEGAL ADVISORS Mayer Brown JSM 16th-19th Floors, Prince’s Building 10 Chater Road, Central, Hong Kong REGISTERED OFFICE Canon’s Court, 22 Victoria Street Hamilton HM 12, Bermuda HONG KONG OFFICE 11th Floor, LiFung Tower 888 Cheung Sha Wan Road Kowloon, Hong Kong 2 LI & FUNG LIMITED | INTERIM REPORT 2012 EXECUTIVE DIRECTORS William FUNG Kwok Lun, Group Chairman Bruce Philip ROCKOWITZ, Group President & Chief Executive Officer Spencer Theodore FUNG, Group Chief Operating Officer PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation Limited Citibank, N.A. JPMorgan Chase Bank, N.A. Standard Chartered Bank (Hong Kong) Limited AUDITOR PricewaterhouseCoopers Certified Public Accountants 22nd Floor, Prince’s Building, Central Hong Kong
HIGHLIGHTS HALF YEAR RESULTS TO 30 JUNE 2012 (US$ million) 2012 2011 Change Turnover 9,128 8,798 +4% Core Operating Profit 221 282 -22% As % of Turnover 2.43% 3.21% Profit attributable to shareholders of the Company 312 236 +33% Earnings per Share – Basic 3.80 US cents 2.92 US cents +30% Dividend per Share 15 HK cents 19 HK cents -21% • Turnover increased by 4% to US$9,128 million, reflecting market share gains in USA and tough market conditions in Europe • The Company continued to make inroads in capturing growing Asian markets • Cross-selling momentum continued amongst all three Business Networks of Trading, Logistics and Distribution, but will be reflected in second half of 2012 and into 2013 • Profit Attributable to Shareholders up 33% to US$312 million • Core Operating Profit was down by 22% to US$221 million, due to slower than expected turnaround of LF USA’s business and the investment into LF Asia’s Fashion & Home platform • Operating costs increased by 13% or US$128 million (rise from US$973 million to US$1,101 million). The increase was mainly attributable to net cost increase by the Distribution Network of US$91 million (rise from US$506 million to US$597 million), out of which US$92 million came from acquisitions. In addition, there were restructuring costs of LF USA incurred during the period of approximately US$35 million. The Company had net savings on operating costs of US$47 million, out of which US$26 million came from LF USA. The operating costs analyses are set out in in ccharts charts c below: US$ million 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 973 2011 Operating Costs OPERATING COSTS ANALYSIS (GROUP TOTAL) New Acquisitions (Trading Network) New Acquisitions (Distribution Network) OPERATING COSTS ANALYSIS (DISTRIBUTION NETWORK – LF USA) US$ million 500 450 400 350 300 250 200 150 100 50 0 330 2011 Operating Costs 71 New Acquisitions Restructuring Costs* 42 35 -26 Net Savings 92 410 2012 Operating Costs 35 6 -47 LF USA Restructuring Costs* LF Asia Establishment Costs Net Savings 1,101 2012 Operating Costs US$ million 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 OPERATING COSTS ANALYSIS (DISTRIBUTION NETWORK TOTAL) 506 2011 Operating Costs OPERATING COSTS ANALYSIS (DISTRIBUTION NETWORK – LF EUROPE) US$ million 500 450 400 350 300 250 200 150 100 50 0 15 -14 92 93 2011 Operating Costs New Acquisitions Net Savings 2012 Operating Costs 92 New Acquisitions 35 6 -42 LF USA Restructuring Costs* LF Asia Establishment Costs Net Savings 597 2012 Operating Costs OPERATING COSTS ANALYSIS (DISTRIBUTION NETWORK – LF ASIA) US$ million 500 450 400 350 300 250 200 150 100 50 0 84 2011 Operating Costs 6 6 -2 * The balance included relocation costs, severance payments, rentals for vacated space and consultancy fee incurred for LF USA’s restructuring exercise. LI & FUNG LIMITED | INTERIM REPORT 2012 3 New Acquisitions Establishment Costs Net Savings 94 2012 Operating Costs
Page 3: CONTENTS 2 Corporate Information 3
Page 7 and 8: CHAIRMAN’S STATEMENT (CONTINUED)
Page 9 and 10: MANAGEMENT DISCUSSION AND ANALYSIS
Page 11 and 12: MANAGEMENT DISCUSSION AND ANALYSIS
Page 13 and 14: CORPORATE GOVERNANCE The Board of D
Page 15 and 16: CORPORATE GOVERNANCE (CONTINUED) RE
Page 17 and 18: CORPORATE GOVERNANCE (CONTINUED) IN
Page 19 and 20: DIRECTORS AND SENIOR MANAGEMENT (CO
Page 25 and 26: DIRECTORS’ INTERESTS AND SHORT PO
Page 27 and 28: DIRECTORS’ INTERESTS AND SHORT PO
Page 29 and 30: OTHER INFORMATION CHANGES IN DIRECT
Page 31 and 32: CONDENSED INTERIM FINANCIAL REPORT
Page 33 and 34: CONSOLIDATED STATEMENT OF COMPREHEN
Page 35 and 36: CONSOLIDATED BALANCE SHEET (CONTINU
Page 37 and 38: CONSOLIDATED STATEMENT OF CHANGES I
Page 39 and 40: NOTES TO CONDENSED INTERIM FINANCIA
Page 55 and 56:
NOTES TO CONDENSED INTERIM FINANCIA
Page 57:
NOTES TO CONDENSED INTERIM FINANCIA
show all

Download - Li & Fung

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?