Quake may prove a boon for Karrie
The earthquake in Taiwan could benefit Hong Kong manufacturers, according to the president of Karrie International Holdings.
Ho Cheuk-fai said industrial producers in the SAR had maintained their edge despite foreign competition and could take advantage of the disruption of production in Taiwan due to the quake.
His comments came as the group announced a 9.7 per cent fall in attributable profit to $25.16 million for the year to March 31, on turnover of $591.94 million. A dividend of two cents per share will be paid.
Mr Ho said the decline was due to large investments in machinery undertaken by the computer-casing maker and depreciation. As capacity improved, he expected to see a surge in profits in the near future.
Executive director Li Cheuk-sum said a policy of investing in capital equipment despite the economic downturn had helped it stay ahead of its competitors.
'This ensures that we have the capacity to expand our production when the economy begins to show signs of recovery,' Mr Li said.
Karrie's new factory in Dongguan, which began operations in January, cost $30 million and up to $2 million had been invested in new plant buildings.
Mr Li also justified the dividend payment to shareholders, saying that the company had sufficient cash flow.
Karrie has $110 million in cash and a gearing ratio of about 19 per cent.
MANUFACTURING
