SINGAPORE (Feb 22): Kingboard Copper Foil reported HK$17.8 million ($3 million) in earnings for the full year ended Dec 2017, up more than threefold from HK$4.9 million a year ago on lower cost of sales.
Revenue for FY17 fell 4.08% to HK$609.4 million from HK$635.3 million in FY16, and comprised the receipt of fees for an ongoing licensing agreement as well as the sale of PVB resin.
Over the full year, the group saw its cost of sales fall 8.14% to HK$520.5 million compared to HK$566.7 million a year ago.
Distribution costs grew 6% to HK$18 million as transportation costs grew on rising oil prices.
Share of losses of an associate nearly halved to HK$5.1 million from HK$9.6 million in FY16.
In all, gross profit margin for FY17 was 14.6% compared to 10.8% in FY16.
In its outlook, Kingboard says its PVB business has been affected by regulations in China, but that it has successfully ventured into India, which is seen as an emerging market with “great opportunities and potential” in the PVB market.
The group says it will continue to prove its production efficiency, reduce its defect rate, lower production costs and shorten lead time so that it can deliver greater returns to shareholders.
Shares in Kingboard closed flat at 36 cents on Thursday.
