Plastic-products maker Luen Fat Hong International Holdings has recorded an unaudited consolidated loss of $19.09 million for the 11 months to February 28. Financial controller Keith Chan Ying-kay, speaking after the company's annual general meeting, said yesterday: 'Although the price of raw materials has decreased, the price of our products has also fallen at the request of our clients. 'This has had the effect of bringing profit margins down.' He said the company would continue to tighten cost controls and increase productivity. Mr Chan also said the company would decrease its gearing ratio from about 140 per cent to 119 per cent after raising about $40 million from a rights issue. The company plans to use $22 million of the issue proceeds to develop a factory in Dongguan, while the remainder would be set aside as general working capital.