Kingboard Chemical Holdings said falling prices of raw materials in the first half of this year helped to cushion a margin squeeze on laminates products.
Speaking after Kingboard Chemical's annual meeting, chairman Cheung Kwok-wing said the company's net profit margin in the period dropped to 10 per cent from 14 per cent in the previous year because of keen competition from Taiwan and South Korea.
But he said the cost of raw materials such as copper foil and formalin had dropped 20 per cent. He said this decline helped to ease operating costs.
Finance director Stanley Chung Wai-cheong said the company would also control costs through vertical integration.
He said half of the production of glass fibre - raw material to manufacture glass epoxy laminates - in Shenzhen Longhau Town would be consumed by the company.
The company also plans to lower inventory levels to maintain its competitiveness.
