Kong, October 11, 2007) -- 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, 2007.
For the year under review, the Group recorded a turnover of HK$1,405,507,000, up 6% against the previous year. Profit attributable to shareholders surged by 111% to HK$14,975,000. Earnings per share for the period were HK4.16 cents. The Board has recommended payment of a final dividend of HK1.0 cent per share. Including the interim dividend of HK1.0 cent per share, the total dividend payment for the year under review will amount to HK2.0 cents per share.
Mr. Hui Sai Chung, Chairman of Ngai Hing Hong, said, ¡§We are pleased with the Group¡¦s encouraging results in the past year. Although the operating environment remained tough with high crude oil and raw material prices, the Group adopted a series of cost control measures to increase cash flows and improve profit margin. As a result of these measures, combined with the notable growth of our manufacturing business, the Group achieved profit more than double that of last year. ¡¨
During the year under review, the Group¡¦s engineering plastics manufacturing business achieved a 15% increase in turnover. Its plastics trading business also grew steadily and reported increase in both number of orders and selling prices. Among the Group¡¦s major business segments, domestic sales of colorants and compounded plastic resins boasted the most notable growth with turnover 20% higher than the previous year.
To support business development, the Group opened a new factory in Xiamen in October 2006. Together with the other factories in Dongguan, Shanghai and Qingdao, the new factory has helped to increase overall production capacity of the Group for meeting market demand in Fujian Province and surrounding regions.
During the year under review, the Group signed an agreement with PolyOne Corporation (¡§PolyOne¡¨), which is listed on the New York Stock Exchange, to sell part of the assets of a subsidiary to PolyOne and acquire a 5% stake in a PolyOne subsidiary operating PVC business. PolyOne is a world-renowned compounding and North American distribution company of thermoplastic compounds, specialty PVC resins, colour and additives. The transaction is expected to be completed by December 2007, creating a win-win partnership and allowing the Group to focus resources on developing its core plastic manufacturing and trading business.
Going forward, the Group will nurture its plastics trading businesses steadily according to plan with the aim of enhancing overall competitiveness and broadening its income streams. It will explore opportunities in the booming PRC market through its two newly set up subsidiaries in Guangzhou and Shanghai.
For the manufacturing segment, including the engineering plastic products and colorants business, the Group will strengthen product testing and provide comprehensive after-sale services to customers so as to enhance product quality and maintain its competitive advantage. At the same time, the Group will develop more new products and new applications for its products in various industries, such as the packaging industry, so as to expand its income sources, and fully realize its production efficiency and economies of scale advantages while satisfying different customer demands.
Mr. Hui concluded, ¡§The Group will seek to realize long term development and the most satisfactory returns for shareholders. I am confident that the Group will be able to attain more prosperous results in the coming year.¡¨
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.