With the announcement of a number of corporate financial reports, plastics companies in China and Asia have announced good results. Although these companies also mentioned some challenges and trade frictions between the United States and China, most of them showed good results.
The main reason is that the Chinese government continues to increase the investment in infrastructure construction. The overall economic growth last year was also faster. In addition, some strategic shifts also played a role, such as shifting low-end manufacturing to Vietnam.
For example, in the plastics pipe industry, sales rose 18.2% last year, reaching 20.36 billion yuan, net profit reached 5.314 billion yuan, an increase of 16%. 90% of sales come from pipes and fittings. The company submitted to the Hong Kong Stock Exchange. The annual report shows that the Chinese government's active investment in water supply, sewage, electricity and communications has greatly contributed to the performance of the company. For example, large-scale conversion from coal-fired heating to natural gas heating has promoted the demand for pipelines. The sales increased by 119% to 412 million yuan. The major market for Liansu is mainland China, with exports accounting for only 3.5% of its total sales.
In addition, the One Belt One Road Policy has also brought opportunities for the company. Liansu's interior decoration products continue to maintain its global presence, and established after-sales centers in the United States, Canada, Australia, Asia, and the Middle East. In the future, the company plans to open Liansu in New York. Home. The company has 22 manufacturing plants in China and a new factory in Hunan in the second half of 2017. In addition, there are two factories in Zhejiang and Fujian under construction.
Two Boards Help Coase Sales Growth
Kesi Machinery Co., Ltd. is an injection molding machine and plastics manufacturer with sales of HK$2.447 billion last year, an increase of 11.6%. Injection molding machine sales reached HK$902.9 million. Operating profit was HK$63.35 million, a loss relative to 2016 2.7 billion Hong Kong dollars, indicating that the company began to adjust two years ago has been reflected in the performance.
Coase pointed out in the annual report that the sales of two-platen machines for the automotive and household appliance industries are extremely strong. The sales momentum of customized injection molding machines is not uncommon, and the company expressed its hope to continue improving quality in this area.
The company's plastics processing division had sales of HK$389.8 million. Although affected by the typhoon, the Zhuhai plant was suspended for three months. Coase attributed the increase in revenue to more scientific capacity utilization, higher production cost control, and improved product quality.
Looking ahead, the Coase board of directors expressed optimism, but also raised some problems faced, such as rising raw material prices, shortened product life spans, and constant friction among the world’s two largest economies. The company’s announcement stated that the economy and the United States and China There is growing uncertainty in trade relations. '
Toy manufacturer's production transfer to Vietnam
The export-oriented toy manufacturer Dream International announced that sales increased by 34.6% to nearly HK$2.9 billion. The company said that transferring production to Vietnam brought financial advantages and brought more business.
The increase in production efficiency and the increase in economic scale allowed the company's profits to increase by 36.6% to HK$832.8 million. Sales of plastic products accounted for half of its business, jumping 112.2% to HK$1.336 billion.
The company stated that the increase in efficiency was due to the transfer of the production of cycling toys from China to Vietnam. Sales in this segmented market almost doubled to HK$63 million. The company’s traditional strength plush toys also saw sales increase to 14.97. Hundred million Hong Kong dollars. Sales in North America accounted for 63.2% of the company's business, followed by Japan, accounting for 24.8%, followed by Europe, accounting for 5.2%.
The company has four factories in China, 14 factories in Vietnam, and another plastics factory in Hanoi, Vietnam. The company’s management is optimistic about the future and points out that as the Chinese toy industry further merges and restructures due to competition, Industry-led companies will have more room for growth, especially those companies that have already established production bases in Vietnam, because labor costs and exchange rate pressures will be lower, which will help the company's profit growth.
Automotive Market Drives Growth of Xiangyang Technology
Singapore’s Xiangyang Technology is a precision mold and plastics manufacturing company with sales of 724.6 million Singapore dollars last year, an increase of 5.9% from 2016 and a net profit increase of 11.9% to SGD 105.6 million.
The Group’s automotive business grew fastest, with an increase of 7.5% and sales of 263.8 million Singapore dollars. The consumer goods and IT segment grew by 4.3% to S$284.8 million, and health care product sales increased by 6.6% to SGD51.7 million.
The company’s announcement stated that despite the macroeconomic factors and frequent exchange rate fluctuations, the company expressed optimism about its performance this year. The chief executive officer stated: 'We expect the global economic environment to remain robust and uncertain in emerging economies. We pose challenges. But our sustainable and profitable model will ensure our good development.
Xiangyang Technology plans to open a 15,000-square-meter factory in Penang, Malaysia this year. The company currently has 19 production plants in Asia, South America and Europe.