Polyurethane foam and bedding company St. Norfolk announced that its 2017 after-tax profit decreased by HK$49.6 million, or 49%, to HK$51 million. The company stated that the decrease in profit was due to the high price of TDI in 2017.
Sinon issued a profit warning in mid-March.
Its 2017 sales revenue increased by 19% to HK$4.18 billion. The cost of sales rose by 25% between 2016 and 2017, and the cost of sales in 2017 reached HK$3.35 billion. This offsets most of the gains from increased revenue.
Sino Proclamation announced that the sales volume in China's local market in 2017 was HK$1.9 billion, which was the same as 2016.
In North America, sales in 2017 rose by 20% to HK$1.75 billion, compared to HK$1.5 billion in 2016. Sales in the United States increased by 15% from HK$1.4 billion in 2016 to HK$1.6 billion in 2017.
In the remaining North American Free Trade Zones, sales increased from HK$83 million in 2016 to HK$128 million in 2017. Sinon added that if a sales project with a customer proceeds earlier, then sales in the North American market The increase will be even higher. Sino Proclamation stated that the trial operation of the US subsidiary led to a gross loss of HK$71.5 million in 2017.
Sales in Europe in 2016 have been reiterated and dropped from HK$91 million in 2016 to HK$73 million in 2017, a decrease of 18%.
Looking forward to 2018, Sino Proclamation stated that TDI prices are expected to stabilize. It will continue to upgrade machinery and expand production.
Sinon added that its factory in Shandong has started operations in the third quarter of 2017.