YUGANG International has reported a turnover of $689.59 million for last year, a 22.5 per cent increase over 1993's figure of $562.48 million. The group's profit attributable to shareholders was $86.06 million, up 19.1 per cent on the previous year's $72.26 million. Net profit before tax grew 15.77 per cent to $100.56 million from $86.86 million. Basic earnings per share were 23.5 cents, against 25 cents previously. A final dividend of four cents a share was recommended. Turnover for the group's car parts division was up $112.6 million, accounting for 42 per cent of the total turnover. The sharp increase was attributed to the Chinese Government's plans to develop the domestic car industry, which relies heavily on imports. The group's industrial equipment business recorded a rise in profit of 58 per cent and an increase in turnover of 13 per cent. Sales of airport security systems, welding machines and industrial non-destructive testing equipment were also strong. With more than 60 airports in China under construction, or being expanded, demand for airport-related products would continue to be high, said the company. Audio-visual products and components, the third business sector of the group, saw turnover fall while profit margin remained steady. Chairman Cheung Chung-ku said the group should do well in the luxury goods market this year because of the steady growth of the mainland economy and an increase in consumer spending power. 'Globally speaking, Asian economies are overtaking the West in terms of economic growth,' said Mr Cheung. 'China is seeking to join the World Trade Organisation and the government has instituted strong measures to control inflation. 'To continue to consolidate and expand, the group is implementing vigorous measures to improve managerial and operational efficiency.' Yugang was listed on the exchange 18 months ago.