Hong Kong-based compounder and colorant manufacturer Ngai Hing Hong said Feb. 27 that a stronger Chinese economy and a relatively stable global market helped it make modest gains in sales and profit in the second half of 2013.
Sales rose 2 percent to HK$942.7 million (US$121.4 million) and net profit more than doubled to HK$10.1 million ($1.3 million), aided by strict cost control programs and foreign currency gains, the company said in a filing to the Hong Kong Stock Exchange.
“In mainland China, stable economic growth remains the main development direction after the smooth transition of government leadership in the PRC,” the company said. “Thus government policies have helped stimulate domestic demand, in turn facilitating the group's business expansion in mainland China.”
The company said it planned to continue beefing up its sales network in mainland China, while at the same time it unveiled a new strategy of trying to sell more directly in international markets, rather than relying on resin distributors and others.
“The group will invest more resources on negotiating direct partnership opportunities with overseas customers, exporting plastic products to them without intermediaries,” it said. “As these global customers generally bring higher gross profit margins, this direction can help the group improve its profitability and create more new business channels.”
NHH did not break out sales geographically but said its colorants, pigments and compounding unit performed best, with its sales closely tied to the Chinese automobile and food packaging markets.
Its engineering plastics manufacturing business, which is focused internationally, saw sales drop 5 percent, while its plastic materials trading division said sales rose 6 percent, driven by expansions of its sales networks in western and northern China, the company said.
