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Newly listed Passion Holdings announces order book of
RMB155.1 million
��
Orders are expected to be delivered by the end of December 2009��
Awarded the Leader in Handicrafts and Home Furnishing Industry in Fujian ProvinceSINGAPORE – 12 October 2009 – Passion Holdings Limited
or together with its subsidiaries, the “
wide range of handicrafts and furnishings, today announced a healthy set of order books as at 30
September 2009.
The Fujian-based Group, which listed on the mainboard of the Singapore Exchange on 2
September 2009, has received orders amounting to RMB155.1 million, a 28% increase from the
RMB121.2 million orders received in the corresponding quarter ended 30 September 2008. The
Group expects the orders to be delivered in its second financial quarter ending 31 December 2009
(“2Q 2010”).
“We continue to see robust demand for our handicrafts and furnishing products in both overseas
and local markets. Our established ‘Passion’ brand name and foothold in the medium and high-end
overseas markets has provided a platform for growth within the PRC market. We anticipate the
PRC market will be our main growth driver in the short to medium term,” elaborated Ms Chen
Huiling, founder and Executive Chairman of the Group.
派森控股有限公司 (“Passion”Group”), an integrated designer, producer and retailer of aPassion Holdings Limited
Page 2 of 3
The Group’s recent listing raised estimated net proceeds of approximately S$18.6 million, which
the Group intends to use for the expansion of its production capacity and sales and distribution
network within the PRC, as well as for the strengthening of its ‘Passion’ brand name in the PRC.
“We have been actively executing our business strategies, particularly in the PRC. Our immediate
focus is to appoint additional distributors in big cities such as Shanghai, Beijing, Guangzhou,
Dalian, Qingdao and Xiamen. Together with our local distributors, we plan to set up additional
Passion Art specialty stores in the PRC,” added Ms Chen.
To further enhance its brand name and build stronger brand loyalty, the Group is also working
towards launching extensive brand-driven and customer-centric advertising, such as advertising in
magazines, billboards, static or scrolling panels, posters and brochures.
Most recently, the Group’s wholly-owned subsidiary, Yirong Arts and Crafts Co., Limited, was
accorded the coveted “Leading Company in the Handicrafts and Home Furnishing Industry” award
(
On the receipt of this award, Ms Chen said, “We are gratified to receive this accolade, which was
given in recognition of our Group’s reputation, product quality and large-scale operations. Given
that the developing handicrafts and furnishings industry in the PRC has no dominant industry
leaders to-date, and that we are one of the leading integrated players in the market, we believe
there are immense growth opportunities for us.”
With the continued economic and social development of the PRC, the Group believes that the
sophisticated and discerning middle class consumers will purchase handicrafts and furnishings that
suit their preferences and better reflect their lifestyles. Coupled with the new concept of ‘less
renovation, more decoration’ promoted by the interior design industry, the Group has also
witnessed an increase in the use of decorative handicrafts and furnishings to create a cozy and
homely atmosphere in homes.
“We believe the rapid urbanisation and the continuous growth of the PRC population, as well as
the redevelopment of traditional urban areas, will spur demand for our products in the PRC. In
similar fashion, we expect the handicrafts and furnishings industries in the European Union, the
Middle East and the USA to continue to grow in the medium term,” concluded Ms Chen.
福建省装饰品龙头企业) issued by the Fujian provincial government.Passion Holdings Limited
Page 3 of 3
The Group expects to announce its financial results for the first quarter ended 30 September 2009
on or before 15 November 2009.
# # #
About Passion Holdings Limited
Passion Holdings Limited is an integrated designer, producer and retailer of a wide range of
handicrafts and furnishings.
Widely used as decorations, interior designs or home furnishings, the Group’s products are sold
either under its brand name ‘Passion’ or as original design manufacturer (“ODM”) products
through its distributors in the PRC and overseas. The Group’s products are categorised into 5
main series: rattan-wood series, bamboo-wood series, medium-density fibreboard (“MDF”) series,
wood series and iron series.
The Group’s strong design and development team can create approximately 2,000 new designs
annually, and it currently owns 9 patented designs, with another 17 pending approval.
The Group has been catering to the medium and high-end overseas markets over the past few
years, with a strong foothold in the European market. Its established ‘Passion’ brand name
amongst overseas customers provides a platform for growth within the PRC market, where it has
witnessed increasing domestic consumers’ recognition of the ‘Passion’ brand name.
The Group has a diversified customer base of more than 200 overseas distributors with a network
of over 5,000 points of sale (“POS”), as well as 10 local distributors with a network of more than
200 POS in the PRC.
With its large-scale manufacturing facilities located in Longyan City, Fujian Province, the PRC,
which has one of the larger forest bases in the PRC, the Group is actively involved in the various
stages of the manufacturing process of its products: (i) conceptualisation, design and development;
(ii) manufacture and assembly; and (iii) sales, marketing, distribution and export or retail.
The Group’s revenue grew at a compounded annual growth rate (“CAGR”) of 39.9% from
RMB277.1 million in FY2007 to RMB542.0 million in FY2009. Net profit attributable to equity
holders grew at a CAGR of 32.2% from RMB63.9 million in FY2007 to RMB111.6 million in
FY2009.
There r opportunists to peow IPO to make coffe $, disregarding how good d IPO's stock is!
D fact now is, is it a good atmosphere for new IPO? Esp for d S chip, under d not so cheong STI, as compared to others ard d regions?
A good to hv biz, in short n medium term, not easy to survive. A new biz which is not in good demand under d currently still gloomy economy, also difficult to find a good strong base to maintain healthy running of biz.
However, if current global economy emerges unexpectedly fast n strong, then a diff story liao. Just AK after Carlsberg talk only, no calling loh. Cheers.
Thank you so much for your best reply.
Look like need to wait for so long???? waiting for big buyer to buy up..... wish to see this counter up like others
keepnosecrets ( Date: 15-Sep-2009 13:07) Posted:
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Because this is a new listing, the important thing to watch is its ipo performance for the first one month or so. If it slides down after IPO, some reasons can be attributed as: 1. Profit-taking by shareholders who became rich after their private shares become stocks. So in order to lock in the profits from the stocks rather than from the business, these people will start selling as much as they can so long as they have no emotional attachment with the company while they are also non directors. 2. People related to the listings, for example underwriters or stock brokers who are given free shares or cheaper version prices than the general public as a reward for their work. They too would sell off the shares to bring in money tax free. (This is an IRAS subject which I don't want to discuss here, because these people will kill me for alerting IRAS to count these kind of rewards as pay or taxable commissions). There are also people who subscribed at the 25 cents and started selling as soon as the shares are listed to stag some profits and after that they don't want to look further at the shares.
So the above are some of the reasons why your passion shares are falling from the start. But as I said, keep them for some time. The prices will come back, a year or two.
Thanks for your comments.
I still believe that this counter will up. Maybe during CHINA NATIONAL DAY.......
keepnosecrets ( Date: 15-Sep-2009 11:37) Posted:
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chewwl88 ( Date: 12-Sep-2009 02:01) Posted:
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Piang really nua nua :( , will monitor another week......
Another Lattitude?