Increase in value of rare-earth products boosts Yixing Xinwei

Yixing Xinwei, a maker of rare-earth products and fire-resistant materials, posted a 30.91 per cent gain in net profit to HK$81.16 million last year.

Chairman Jiang Quanlong attributed the growth to a 30 per cent rise in the prices of rare-earth products, which are widely used in car parts, computer monitors, computer electronic motors, and magnetic memory chips.

The company sold more than 90 per cent of its output of fire-resistant materials to major mainland steel mills.

Mr Jiang said the company's profit margin had increased to 36 per cent from 28 per cent due to increased production efficiency.

Last year, Growth Enterprise Market-listed Yixing spent $30 million to enhance its rare-earth product manufacturing facilities, which will raise capacity by 40 per cent from next month.

The company also invested $8 million to expand its production capacity for fire-resistant materials by 100 per cent.