Group production facilities to be relocated after project completion
CHTC Fong’s Industries Company Ltd., the world’s leading textile dyeing and finishing machinery manufacturer, has announced that the group has commenced construction of Phase II of the Zhongshan plant which is expected to be completed by 2017. Upon completion, the group’s production facilities will be relocated from Shenzhen to Zhongshan. As a result, its existing production capacity will be greatly enhanced to cater to its future development needs. The group management will also become more centralised, eliminating duplication of costs through integration of resources. This will allow the group to better pursue its goal of providing European technology, domestic production, global distribution and one-stop production solutions to its customers.
In terms of marketing, the group is focused on harnessing the synergies and cost efficiencies arising from the acquisition of Monforts Group of Germany at the end of 2012, in order to expand penetration along the textile industry chain and provide the market with more advanced dyeing and finishing equipment, thereby further enhancing the overall competitiveness of the group.
Apart from this, the group will 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 the existing strategies.
Given the existing challenges faced by the domestic manufacturing industry will be difficult to eliminate or to mitigate in the near future, the group will adopt a plan to upgrade its enterprise and products in a timely manner as part of its established strategy. It will continue to step up efforts in R&D and employee training, to stay ahead of competition in terms of product function, technology, service and other fields. With one-stop product structure, sustained innovation, strong customer base and a brand image that has been well established for over 50 years, the group is confident that it will be able to handle potential challenges in the future.
Ms. Shi Tinghong, Chairman and Executive Director, said: “The Group will continue to uphold its ‘integrity-based, technology-driven and customer-oriented’ business philosophy, while being guided by a need to protect the environment and create value for customers, so as to continuously develop high-quality products that meet the market’s needs while providing Chinese and international dyeing enterprises with the most advanced, environmentally-friendly and best value-for-money dyeing and finishing equipment. Looking into 2015, the group will strive forward with concerted efforts to seize available opportunities, tackle difficulties and challenges, act in unity and be endeavored to achieve more splendid results in all business segments in order to reward our shareholders, employees, customers and the society with the long-term and sustainable growth of CHTC Fong’s.”
For the year ended December 31, 2014, the group recorded revenue of approximately HK 3,415,000,000. Profit increased by 47 per cent from approximately HK 80,000,000 in the previous year to about HK 118,000,000.
Despite the slowing of China’s economy and the fact that the global economy remained uncertain, the group achieved steady growth in its dyeing and finishing machines business as it adopted aggressive market development strategies and leveraged on customers’ need for upgraded and more environmentally friendly and energy saving machines. For the year ended December 31, 2014, this segment recorded revenue of approximately HK 2,515,000,000, accounting for 74 per cent of the group’s total revenue while representing a decrease of 11 per cent from approximately HK 2,840,000,000 in the previous year.
Combined sales from Hong Kong and the PRC markets were approximately HK 1,290,000,000, representing a decrease of 27 per cent from HK 1,762,000,000 recorded in the previous year. However sales from overseas markets amounted to HK 1,225,000,000, up by 14 per cent from HK 1,078,000,000 in the previous year.
Thanks to continuous improvement in manufacturing processes and effective cost control, which contributed to a higher gross profit margin, operating profit of this business segment increased from HK 135,000,000 in the previous year to HK 137,000,000.