TURNOVER GREW 20.6% TO HK$603,067,000
NET PROFIT SURGED 95.8%TO HK$13,962,000
Kong, March 15, 2005) -- 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 interim results for the six
months ended December 31, 2004.
During the six-month period, the Group recorded a turnover of HK$603,067,000 (2003: HK$500,188,000), representing a growth of 20.6% over that of the corresponding period last year. Profit attributable to shareholders surged 95.8% to HK$13,962,000 (2003: HK$7,132,000). Earnings per share for the period amounted to HK 4.7 cents (2003: HK 2.4 cents). The Board has recommended an interim dividend of HK1.0 cent per share (2003: HK 1.0 cent).
Mr. Hui Sai Chung, Chairman of Ngai Hing Hong, said, ¡§During the period under review, although the economic environment still posed challenges, our business expansion efforts implemented in the past continued to bring concrete returns. The Group reported encouraging results in the first half year. During the review period, we saw improvements in all major operations, boosting significant growth in both turnover and profit attributable to shareholder of 20.6% and 95.8% respectively, when compared with the same period last year. These investment projects further strengthen the foundation for our future development.¡¨
During the review period, the Group¡¦s high margin engineering plastic manufacturing business performed exceptionally well. Having passed the teething stage, the Group¡¦s Tai Po plant boasted smooth operations and production. The vigorous marketing efforts of the Group for its quality products during the period also contributed to the notable rise in product prices and sales of its engineering plastics products. The Group is currently focusing on introducing the line of products to other industries and developing new product applications, to expand the room for development. Benefited from the continuous rise in plastic prices and effective raw material inventory policy, the Group¡¦s plastic trading business boomed, securing persistent growth in both turnover and profit.
PVC compounds business, the Group¡¦s new business pursuit, has started to bring in revenue. Based on the number of orders received and the preliminary response of potential customers, the Group is very optimistic about the prospects of this new business. As for the colorant segment, heeding the sharp price hike of raw materials during the period and keen market competition, customers had been extra cautious in placing orders. The performance of the segment was affected as a result.
The new plant swinging into full operation has significantly boosted the Group¡¦s overall productivity, allowing it to further lower production costs. In the latter half of the year, the Group will step up its sales and marketing efforts in its strive for maximum cost-effectiveness.
Mr. Hui concluded, ¡§As the global economy and the sentiment in the consumer markets continue to pick up, we see rosy prospects for the market. With the continuous efforts of our staff, we are confident that the growth momentum built up in the first half of the year will persist in the latter half year, thus taking the business stream to yet another new height.¡¨
About Ngai Hing Hong Company Limited
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.