Dyeing machinery-maker Fong's Industries expects to see its bottom line boosted this year by an improved retail environment in North America and Europe, finance director Richard Wee Seng says.
Mr Wee said orders for dyeing machinery from south Asian countries, such as Thailand, India, Pakistan and Bangladesh, had also increased 40 per cent in the first quarter compared with the corresponding period last year.
To meet the increasing demand, Fong's is to invest $30 million to expand its Shenzhen plant and buy more machinery this year. Last week, Fong's announced its final results for the year to March.
During the period, the company saw a strong rebound from an attributable loss of $32.41 million the previous year to a net profit of $7.89 million.
Mr Wee attributed the improvement to strict cost-control measures aimed at raising the gross profit margin of its dyeing machinery production.
'As a result of the measures, the total production cost [on dyeing machinery] has dropped from over 50 per cent to slightly above 40 per cent.' He said Fong's had also cut its gearing ratio from 150 per cent to 100 per cent last year.
