U-Right doubles profits through nanotechnology

PUBLISHED : Wednesday, 26 November, 2003, 12:00am
UPDATED : Wednesday, 26 November, 2003, 12:00am

Nanotechnology helped textile manufacturer U-Right International Holdings double its profits in the first half.

Deputy chief executive Raymond Chui Chi-keung said its Swedish Texcote Technology, a nanotechnology that manipulates materials at one-billionth of a metre to make them resistant to water and stains, was a major contributor to earnings.

For the six months to September, U-Right earned $53.03 million from nanotechnology, a 16-fold increase from a year earlier. Nanotechnology accounted for 16.8 per cent of U-Right's turnover, which increased 19.6 per cent to $314.9 million.

The company gained $25 million from one-time fees for licensing its nanotechnology to other companies. Mr Chui said most of this went straight to the bottom line, because virtually no operating costs were incurred.

Net profit soared 98.2 per cent to $37.82 million, compared with $19.08 million in the same period last year. A dividend of one cent per share will be paid.