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
Companies & Associations

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

Dow Chemical sees potential for PE growth in packaging

March 30, 2015 1:17 pm ET

The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will ...    More

Image

TPUs finding applications in drug-delivery applications

March 30, 2015 12:56 pm ET

Lubrizol Corp. is sending its thermoplastic polyurethane products into medical products, foam and film.    More

Image

Production begins at Sipchem's new EVA, LDPE plant

March 30, 2015 10:36 am ET

A unit of Saudi International Petrochemical Co. (Sipchem) will start commercial operations at its ethylene-vinyl acetate (EVA) and low density...    More

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second plan...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

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

More Events