Ngai Hing Hong turns around first-half loss

By Steve Toloken
News Editor / International

Published: October 8, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers

HONG KONG (Oct. 8, 1:20 p.m. ET) — Tighter cost controls and a rebound in its colorants and compounding business allowed Hong Kong-based materials supplier Ngai Hing Hong Co. Ltd. to turn a slight profit for its most recent fiscal year, reversing losses in the first half of the year.

Poor global economic conditions and rising labor and finance costs in China continued to hold the firm back, but it said it had success building business with new international customers in the automotive and electronics industries and in replacing stone and wood with plastic-based materials in mainland China.

Revenues for the year ending June 30 were HK$1.64 billion (US$210.2 million), down 3 percent from the previous fiscal year, but it recorded a small profit for the year of about HK$3.1 million (US$397,000), reversing a loss of about HK$8.2 million (US$1.05 million) in the first six months, the company said in a Sept. 21 earnings filing with the Hong Kong stock market.

“The Group bolstered cost control and adjusted its business strategies, which resulted in improved business performance in the second half year,” the company said.

Ngai Hing Hong said it expected results to improve in the current fiscal year in part because its profitability was held back by higher costs related to relocating to a new factory in Hong Kong and expanding capacity in plastics compounding at its Shanghai plant, which added two production lines and started receiving orders in July.

“The new plants in Shanghai and Hong Kong will not only position the Group more clearly in the Southern and Eastern China markets, but will also complement its production model and create synergies for its business,” it said. “The management expects the expanded production capacity will strengthen the Group’s competitive advantage and achieve greater cost efficiency.”

It said its Shanghai factory was able to make gains securing business from well-known automobile brands, and it said it hoped other offices in China could replicate its Shanghai business model.

The company said it would continue its focus on the domestic China market, and said its colorants and plastic compounding business unit was able to secure more business in the food packaging industry, including becoming the preferred supplier for some customers, and grow its turnover 16 percent, to HK$360.6 million (US$46.2 million).


Comments

Ngai Hing Hong turns around first-half loss

By Steve Toloken
News Editor / International

Published: October 8, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

2014 sees modest sales increase, but profit decrease, for Dow Chemical

January 29, 2015 4:20 pm ET

Dow Chemical Co. delivered modest sales growth in 2014, but the firm's profit took a tumble.    More

Image

Resin prices continuing to tumble

January 29, 2015 2:24 pm ET

The ongoing slide in crude oil prices is taking commodity resin prices down as well.    More

Image

Materials firms look for stock rebound

January 29, 2015 1:52 pm ET

DuPont Co., A. Schulman Inc. and Rogers Corp. thrived amid the stock market chaos of 2014, but the other 12 publicly held materials firms tracked by...    More

Image

Chemtrusion, Mytex Indiana compounding plant set for expansion

January 29, 2015 1:35 pm ET

Japanese and American partners in a compounding plant in Indiana plan to expand the facility.    More

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the fast...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events