Tsit Wing's Annual Report, April 2007

Tsit Wing's Q3 2006 and Q4 2006 shows that it was enduring a slow profit margin squeeze (attributable to lost business of high margin tea distribution), I noticed an indication of possible recovery in Tsit Wing dismal performance in the face of intense competition in coffee, tea distribution and catering business.

Comparing segmental results of its 2005 and 2006 Annual Reports, I noticed that its China segment was all along making loses. In year 2004, its China segment suffered a loss of 6.7 million HKD. In year 2005, it the lost was reduced down to 5.2 million HKD. In year 2006, it was further cut down to 1 million HKD. Extrapolating this trend, I expect its China segment to venture into the black, or at least break even this year. This meant that there will be possible stronger showing by Tsit Wing this year, 2007 compared to last. Finger crossed!