One of China’s largest plastics equipment makers, Hong Kong-based Chen Hsong Holdings Ltd., will focus on export markets to make up for weakness in mainland China and Taiwan that lowered sales 2 percent to HK$1.79 billion (US$230.7 million) in its most recent fiscal year, the company said in a June 27 report.
Still, the firm said it was seeing “significant sales increases” from its moves into making large-tonnage injection molding machines, including delivering what it said was the largest Chinese-made injection press — a 4,500-ton ultra-large two-platen press — to a European customer.
And the company said it planned this year to start manufacturing ultra-large machines using technology licensed from Japan’s Mitsubishi Heavy Industries Plastic Technology Co. Ltd.
Chen Hsong expects continued sales growth in its large tonnage machines and in international markets.
“The group’s strategy toward expanding market share amidst cloudy global economic prospects is to increase investments in developing international markets,” it said in a filing to the Hong Kong Stock Exchange detailing results for the fiscal year which ended March 31. “In China, the group will strive to achieve respectable results.”
It said international sales rose 11 percent to HK$511 million (US$65.9 million), while mainland China and Hong Kong dropped 3 percent, to HK$1.17 billion (US$150.9 million).
Sales in Taiwan nose-dived 32 percent to HK$114 million (US$14.7 million), which it attributed to weak demand in overseas markets hurting Taiwan’s export-oriented industry.
The company said in May it opened a sales and support office in Brazil.
“The weak economy in China had a serious impact on customer confidence which in turn suppressed capital investments,” said. “This was especially pronounced in manufacturing sectors producing consumer products (such as household appliances and general electronic goods) as well as producing for export.”
It said it saw a “marked sales decline” in demand for small-and-medium tonnage machines. Profit for the year fell 35 percent, to HK$104 million (US$13.4 million), it said.