Home System Group is a US-listed company whose China-based operating subsidiaries – Oceanic, Weihe and Well Profit – are engaged in the production of a variety of household appliances. These appliances include: stainless steel gas grills and ovens, ceiling and table fans, LEDs, along with decorative and energy-saving lamps. Their products are sold through distributors to retailers in China, Asia, Australia, Europe, Africa and the United States.
The company announced today revenue and earnings guidance for fiscal year 2009. Projected revenue is expected to be approximately $69 million, a 33% increase from the 2008 fiscal year. Net income is expected to come in at approximately $10 million, a 144% increase from 2008. Home System Group’s 2009 results were boosted by their new Weihe Appliances subsidiary which produces fans and energy-saving lamps.
One key point to bear in mind when comparing 2009 results to 2008 results – the fourth quarter results in 2008 were a bit skewed by the fact that about $10 million in revenue pertained to the sales of raw materials that Home Group sold due to the high commodity prices that prevailed at that time. These sales resulted in a net income contribution of $2 million, and such sales are not expected to occur in the fourth quarter of 2009.
The CEO of Home System Group, Mr. Lei Yu, made positive comments on the company’s projected results. He said, “These anticipated results are a testament to Home System Group’s commitment to meeting sales targets, cutting costs and improving efficiencies despite one of the largest recessions in a generation.”