REPORTS TURNOVER GROWTH OF 16.3% TO
HK$1,017,775,000
(Hong Kong, October 13, 2004) -- Leading Hong Kong plastic resins and specialty colourants supplier Ngai Hing Hong Company Limited and its subsidiaries (the ¡§Group¡¨) (Stock code: 1047) today announced its annual results for the year ended June 30, 2004.
For the
year under review, the Group recorded a turnover of HK$1,017,775,000 (2003:
HK$874,976,000), representing a growth of 16.3% over that of the corresponding
period last year. Profit attributable to shareholders amounted to HK$13,279,000
(2003: HK$40,462,000). Earnings per share for the period amounted to HK 4.43
cents (2003: HK 13.49 cents). The Board has recommended an annual dividend of HK
2.0 cents per share (2003: HK 5.0 cents). Including the interim dividend of HK
1.0 cent per share, the total dividend payment for the year under review will
amount to HK 3.0 cents (2003: HK 8.0 cents) per share.
Mr. Hui Sai Chung, Chairman of Ngai Hing Hong, said, ¡§This is the 10th
anniversary of our listing in Hong Kong and we achieved a turnover exceeding the
HK$1 billion threshold despite that it had been a challenging year. We managed
to turn the many challenges posed by the difficult business environment in Asia
into opportunities to grow our business.¡¨
Through implementing aggressive sales and marketing strategies, the Group
secured a broadened customer base and achieved significant growth in both orders
and sales prices, which increased its consolidated turnover by 16.3% over that
of the previous year. In addition, the Group succeeded in expanding into a new
business - the manufacture and sale of PVC compounds. In May 2004, the Group¡¦s
new plant in Dongguan commenced operation to provide to both the domestic and
overseas markets PVC compounds for the production of electrical wires and
cables, sockets and toys.
Mr. Hui continued, ¡§This year, we are happy to see our successful expansion into
the new PVC business. We have received encouraging responses from both domestic
and overseas customers to our PVC compounds products and are confident that this
new business will emerge as a strong future growth driver and start contributing
profits to the Group in the coming financial year.¡¨
Strong market demand for engineering plastics and the Group¡¦s stringent product
quality control further boosting customer demand for its products explained the
outstanding performance of its high margin engineering plastics manufacturing
business. Persistent turnover growth was recorded for this segment. As for the
colourants business, the Group also secured many new customers and recorded
steady turnover growth thanks to the keen market appetite for the film grade
masterbatches.
With regard to the Group¡¦s plastic trading business, Ngai Hing (GZFTZ) Trading
Co., Ltd. ("NHGZ") in Guangzhou reported satisfactory performance with significant growth
in turnover. On top of actual financial returns, NHGZ signifies the Group¡¦s
determination to penetrate into the PRC and to enhance a long-term development
in the market.
However, the surge of crude oil prices and the extra resources deployed into the
new Dongguan plant and the new PVC business increased the Group¡¦s production and
operating costs. Overall profit margin narrowed. Nonetheless, the Group has full
confidence that the return from the new business will be reflected in the
results of the coming financial year. Besides, the Group has established new
plants in Shanghai and Hong Kong, and a new office in Xiamen, which expanded its
production capacity and sales network. These endeavors are expected to generate
even more revenues to the Group in the coming year.
To assure steady business growth in the future, the Group is committed to
enhancing its R&D efforts and has scheduled to set up a new R&D center in
Shanghai by 2005, in addition to recruiting professionals to assist the
development of innovative products. The Group is also dedicated to providing
customers with the highest quality products and premium value-added services,
which will help to strengthen its competitiveness in the market and in return,
expand its income sources.
Mr. Hui concluded, ¡§Looking ahead, seeing the vast growth potential of the
burgeoning PRC market and economy, we will strive to fully exploit our resources
in Guangzhou and Shanghai to further expand our business in the PRC market. With
our promising new PVC business and our new plant progressing into full
operation, we expect to see the Group¡¦s income base broaden, thus bumping up our
overall results next year and bringing even better returns to our shareholders.¡¨
Ngai Hing Hong provides a total solution to plastic products manufacturers with services and products ranging from plastic resin (including polymers Ngai Hing Hong provides a total solution to plastic products manufacturers with services and products ranging from plastic resins (including polymers and engineering plastics) selection, complementary computerised colour matching services, on the spot technical advice, to the supply of custom-made plastic colourants, engineering plastics and PVC compounds for the plastics industry.
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