Burn-in Boards and Board Manufacturing contributed 48.8% of Group’s revenue in FY 2015 (FY 2014: 48.1%),
reported an increase of $2.8 million or 25.0% in revenue. The increase is contributed by higher sales from key
customers as a result of the achievement through continuous customer development efforts the Group has made.
Engineering Services contributed 27.8% of Group’s revenue in FY 2015 (FY 2014: 31.9%), reported revenue of $7.9
million, an increase of $0.6 million or 7.6%. The increase in sales revenue for Engineering Services is attributed by
the higher sales from key customers.
COST OF SALES ($’000)
FY 2015 FY 2014 Change %
Cost of sales
21,509
19,672
9.3
Include in cost of sales:
Cost of material and equipment
13,541
11,929
13.5
Salary and related cost
5,602
5,201
7.7
Depreciation
1,009
1,017
(0.8)
Electricity
517
699
(26.0)
Other direct overheads
840
826
1.7
GROSS PROFIT ($’000)
FY 2015 FY 2014 Change %
Gross Profit
6,881
3,323
107.1%
Gross Margin
24.2% 14.5% 67.2%
The Group reported a higher increase in gross profit of $3.6 million (107.1%) from $3.3 million in FY 2014 to $6.9
million in FY 2015. Gross profit margin increased from 14.5% to 24.2%. The increase in gross profit was primarily
due to the higher sales and improved gross profit margin reported by all business segments in addition to
ongoing cost control measures and improvements in productivity across all business segments.
ADMINISTRATIVE EXPENSES ($’000)
FY 2015 FY 2014 Change %
Administrative expenses
4,033
4,714
(14.4)
Include in administrative expenses:
Salary and related cost
2,255
1,989
13.4
Foreign currency exchange gain/(loss)
548
(243)
n.m.
n.m.: not meaningful
Administrative expense decreased by $0.7 million from $4.7 million in FY 2014 to $4.0 million in FY 2015. The
decrease is primarily due to the foreign currency exchange gain of $0.5 million incurred in the year from an
exchange loss of $0.2 million in FY 2014.
18
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
FINANCIAL
REVIEW
