The debt crisis continues to spread across, the weak economic recovery, labor costs to double digits upward, the raw material prices... Foreign demand by the rise in the cost of slow and influence, the foreign-oriented printing enterprise business environment worsens, a sharp decline in profits. The Hong Kong stock exchange on Tuesday by the interim results report shows, from April 1, 2011 to September 30, of the six months, three printing and packaging of the listed company of year-on-year increase turnover is a minus, net profit is greatly reduced by twenty percent to seventy percent.
3 the company net profit up twenty percent to seventy percent down
Although the three companies year-on-year increase the turnover of have a reduced, but the 3 companies the net profit without exception are compared to the trend of decline, of which two fell about twenty percent, home 1 to seventy percent or so.
Stars group Co., LTD is mainly engaged in manufacture printing and packaging materials, labels and the paper class products, including environmental protection paper products. By September 30, 2011 6 months, the group turnover of approximately hk $774 million, 12% less than the same period last year; Shareholders shall account for about $8 million profits, and 23% less than the same period last year.
The xing printing group Co., LTD is mainly engaged in books and packaging printing business, the consumer products packaging business, corrugated carton business and paper trade business. By September 30, 2011 6 months, the group turnover mild compared to the same period last year rose 1%, to $1.573 billion; Operating profit fell 69% compared to the same period last year, to $56 million; Shareholders shall account for profit fell 76% compared to the same period last year, to $31 million.
New printing group, the main business of our company is printing and manufacturing high quality color packing products, corrugated boxes, books, brochure and the various paper products. By September 30, 2011 6 months, the group turnover of approximately hk $381.7 million, compared to the same period last year by about 20.2% of hk $317.5 million; In addition to profits before tax and shareholders should be accounted for separately about profits for hk $14.1 million and about 10.1 million hk dollar, respectively for the same period last year about hk $17.5 million and about 13.8 million hk dollar, falling by 19.5% and 28.8% respectively compared.
Slowing economy and the rise in the cost be caused by
Three companies are headquartered in Hong Kong, plant is located in the mainland of the export-oriented printing enterprises. Major global market economic recovery weakness, plus China mainland production costs to rise unceasingly, the medium-term performance this year decline, which reflects the export-oriented business environment manufacturers further deterioration.
Overseas markets, the European debt crisis and Europe and the high unemployment rate, make the economic outlook more see not clear, and crack down on consumer confidence and will. Stars group Co., LTD. Analysis, in view of the two big market consumer intend to dust, prompted international distributors and local retailers to supplement inventory and introduce new products to be conservative strategy, customers and demand a reduction in single, the group turnover decreased.
The xing printing group Co., LTD. Analysis, European and American publishers and manufacturers in the development of new books and new product and purchasing common more hasten is prudent, although the European and American market sales decrease, but the fall was part of the emerging markets such as China and Russia the offset by growth.
The rising cost of production is net profit dropped another cause. Stars group Co., LTD. Analysis, the raw material prices, profits of southeast Asia business group constitute the influence; Operating costs rise further, the mainland minimum wage in February 2011 to 3 month with double-digit rise further, affect coverage throughout the group in the mainland all factories or subsidiary companies.
The xing printing group Co., LTD. In the reference period in the mainland of China's production costs continue to rise, paper sustained cost high. The 2010 increased by 20%, the salary of the pearl river delta in 2011 further up 20%. The yuan rise continuously, also increased wages rise to the impact of the production cost. And because the market demand, the price that a weaker fierce competition, the group will rise to all the costs to overseas customers.
Take measures to deal with many challenges
Given that the global economy exist great uncertainty, three companies expressed that the future will face many challenges, will take measures to change the crisis into an opportunity for. Development business, opening up the mainland market packaging, implement green printing is one of the new attraction.
Stars group Co., LTD. Said, first of all, the group put more resources develop high-quality goods packaging business growth, success in these reasonable price and high quality products packaging to increase their share of the market. Secondly, the group to strengthen overall implementation lean management, and has made good progress. Again, group affiliated company of Singapore also extend Malaysia factory, like to take this opportunity to expand sales promotion in southeast Asia and competitive advantage. In addition, management are exploring other plan to increase income source and improve performance group, such as group existing innovation design advantage as a turning point, march component design and manufacturing business and strengthen the network and resources play group benefits.