Hengan International Group, China's largest manufacturer of sanitary napkins, saw profits hit by increased costs for raw materials last year, chief executive Hui Chi-lin said yesterday. This year the plan is to increase exports, particularly to India and the Philippines. Executive director Xu Lianjie expected exports to reach about US$1 million this year, mostly from diapers. 'Last year, our exports amounted to about US$200,000, which was less than 1 per cent of total sales,' he said at yesterday's annual general meeting. 'We plan to expand our business into the Philippines, India, as well as Taiwan.' In the year to December 31, profit dropped 30.8 per cent, year on year, to HK$209.16 million. This was despite a 3 per cent increase in turnover to HK$1.16 billion. Mr Hui attributed the decline to a rise in the price of fluff pulp, a prime raw material, and increased provisions for bad debts. Mr Xu said the company was working to improve quality.