Hong Kong-listed China Liansu Group Holdings, a mainland-based plastic pipes and fittings manufacturer, announced a steady interim financial result for the six months ended June 30.
The group's revenue grew at a healthy pace to 4.57 billion yuan (HK$5.58 billion), representing an increase of 37.4 per cent over the same period the previous year.
Profit attributable to owners of the company was 536 million yuan, representing an increase of 11 per cent over the same period the previous year. Basic earnings per share were 18 fen (22 HK cents).
The company, based in Shunde, in Guangdong, says that its financial result was boosted by the central government's focus on housing development. Sales were driven up by the increased investment in housing and water conservancy infrastructure and the group increased its production capacity to cope with the vast demand from customers which drove up sales. As a result the company recorded a steady growth in its revenue.
Chairman Wong Luenhei says China Liansu will benefit with the housing policies of the central government.
'In order to maintain the steady development of [the] domestic economy, the government continued to introduce measures to expand domestic demand despite the uncertainties in the global economy.
'The government strived to improve people's living and implemented rural urbanisation, water conservancy reform and affordable housing construction given the relatively high inflation level in the first half of 2011. Such expansion has created huge opportunities for the development of the plastic pipe industry. 'Grasping these opportunities, the group continued to expand production scale, enhance and refine the sales network to improve its competitiveness and strengthen its market position.'