Pacific Plywood Holdings has tried to steal the march on rival manufacturer Ta Fu International Holdings by assuring investors it is financially sound, after banks withdrew credit facilities from Ta Fu.
Ta Fu revealed recently it was experiencing cash-flow difficulties when a number of banks pulled their credit lines after it reported disappointing profits.
Pacific Plywood executive director Alexander Lau Kam-hung said yesterday the company's eight creditor banks remained supportive, even though attributable profit slipped almost 15 per cent to HK$186.06 million last year.
'None of our banks has suspended our facilities,' he said.
Pacific Plywood's net debt-to-equity ratio stood at 53 per cent on December 31, while net debt totalled US$70 million, which Mr Lau described as in line with industry levels.
The company was hurt by the regional financial turmoil, but the impact was cushioned by a 50 per cent drop in log prices since September, he said.
