Rising costs blamed for plunge in profit

PUBLISHED : Tuesday, 20 July, 2010, 12:00am
UPDATED : Tuesday, 20 July, 2010, 12:00am

Karrie International Holdings, a manufacturer of computer casings, said business remained difficult due to rising costs, after profit dropped 55 per cent to HK$9.11 million for the year to the end of March. Revenue fell 9 per cent to HK$2.25 billion. The company has experienced continuous turnover declines since 2006. Labour costs rose about 20 per cent in May to an average of 1,500 to 2,000 yuan a month, according to executive director Lee Shu-ki. The firm plans to use most of this year's capital expenditure of HK$65 million on factory upgrades.