Annual Report 2011 - Goodbaby International Holdings Limited

Selling and Distribution Costs
Our selling and distribution costs primarily consist
of promotion, salary and transportation expenses.
Our selling and distribution costs increased by
approximately 10.3% to approximately HK$271.3
million for the year ended 31 December 2011 from
approximately HK$246.0 million for the year
ended 31 December 2010. The increase in selling
and distribution costs was primarily as a result of
an increase of salary expenses, office expenses
and promotion expenses. As a percentage of
sales, selling and distribution costs increased to
approximately 6.9% for the year ended 31
December 2011 from approximately 6.6% for the
year ended 31 December 2010.
Administrative Expenses
Our administrative expenses primarily consist of
salary, research and development, and
professional expenses.
Our administrative expenses increased from
approximately HK$245.5 million for the year
ended 31 December 2010 to approximately
HK$301.1 million for the year ended 31 December
2011. The increase was primarily a result of the
increase of salary expenses, research and
development expenses and office expenses,
partially offset by the decrease in professional
expenses.
Other Expenses
Our other expenses for the year ended 31
December 2011 was approximately HK$5.7 million
as compared to approximately HK$20.6 million
for the same period in 2010, mainly due to
decrease in exchange losses.
gb international
Operating Profit
As a result of the foregoing, our operating profit
decreased by approximately 23.4% to
approximately HK$201.7 million for the year
ended 31 December 2011 from approximately
HK$263.3 million for the year ended 31 December
2010.
Finance Income
Our finance income increased by approximately
208.3% to approximately HK$3.7 million for the
year ended 31 December 2011 from approximately
HK$1.2 million for the year ended 31 December
2010. This increase was mainly due to the
increase in interest on Renminbi deposits.
Finance Costs
Our finance costs decreased by approximately
36.6% to approximately HK$11.6 million for the
year ended 31 December 2011 from approximately
HK$18.3 million for the year ended 31 December
2010. This decrease was primarily due to the
decrease in loan balances and the restructuring of
loans.
Profit Before Tax
As a result of the foregoing, our profit before tax
from our continuing operations (representing the
sum of gross profit, other income, administrative
expenses, selling and distribution costs, other
expenses, finance costs and finance income)
decreased by approximately 21.3% from
approximately HK$246.1 million for the year
ended 31 December 2010 to approximately
HK$193.8 million for the year ended 31 December
2011.