For the six months ended June 30, 2014, CHTC Fong’s Industries Company Ltd. recorded revenue of approximately HK$1,736 million, up five per cent from approximately HK$1,658 million recorded last year. Profit amounted to approximately HK$50 million, representing a jump of 87 per cent from HK$27 million recorded in the corresponding period last year.
For the six months the dyeing and machine manufacturing business segment contributed revenue of HK$1,288 million, an increase of four per cent from HK$1,242 million in the corresponding period last year, accounting for 74 per cent of the group’s revenue.
In terms of new products, the group launched its patented SYN-8 airflow high temperature dyeing machines and the TEC series high temperature dyeing machines last year. As a result of their advanced technologies in respect of efficiency, energy saving and reduced emissions, these models met the needs of mid to high-end customers in both overseas and domestic markets. The overall performance of these machines was highly accredited by many customers, which led to a steady rise in sales despite weak market conditions.
Looking ahead, the group will continue to adopt more cost optimization measures, improve technical process of its products and ensure that the accounts receivables, inventories and cash flow will be managed healthily. In addition, the group will further adjust its product mix and gradually discontinue products with low profit margins with the aim of enhancing profitability. It will also target a few potential emerging markets, including countries such as India, Bangladesh, Indonesia, Vietnam, Turkey and Brazil, and will strive to boost sales in these markets in accordance with its existing strategies.
Mr. Shi Tinghong, Chairman and Executive Director of the Group, said: “Facing the various market and operational challenges, the group has upheld its business direction to maintain long-term sustainable development, continued to focus on proactive investment in research and development on technology and technical process in respect of dyeing and finishing machinery, optimizing existing product designs and enhancing the quality and reliability of the products in order to maintain its competitiveness. The group has confidence in its future developments as all three of its business segments carry renowned brands and maintain a wide range of customers and competitive advantages that meet those customers’ various needs. In the future, the group will continue to enhance its research and development and innovation, provide excellent value-for-money products, further explore local and overseas markets, and expand its market share to build a more consolidated foundation for its future development while bringing more profitable results and return to its shareholders.”