SINGAPORE (May 5): Kingboard Copper Foil Holdings, the producer of electrolysed copper foil, has announced earnings of HK$4.4 million ($0.8 million) for the 1Q ended March 31, nearly three times its 1Q16 earnings of HK$1.6 million in the previously on higher revenue and the absence of share of losses of an associate.
Revenue grew 12.4% to HK$163.9 million, mainly due to the receipt of a HK$30 million license fee pursuant to its ongoing licensing arrangement, as well as higher sales of polyvinyl butyral (PVB) resin, a basic raw material for the production of PVB film used to produce reinforced glass.
Distribution costs for the quarter grew 12% to HK$4.3 million from $3.8 million previously, which was in line with higher turnover.
Administrative expenses also increased by 33% to HK$5.9 million from HK$4.4 million a year ago due to professional fees incurred from the group’s voluntary unconditional cash offer rolled out in March this year.
As at March 31, net current assets and current ratio were approximately HK$2,253 million and 19.6 respectively.
In a Friday filing to the SGX, Kingboard Copper Foil says it will continue to improve the production efficiency in its PVB business to reduce the defect rate, lower production costs and shorten the lead time so as to deliver greater returns to shareholders.
Despite noting low economic growth in China, the group says it has successfully ventured into India as one of the emerging markets (Ems) with “great opportunities and potential” in the PVB market.
Shares of Kingboard Copper Foil closed flat at 40 cents on Friday.
