Electronics maker and trader Wong's Kong King International (Holdings) expects a fall of more than 30 per cent in net profit for last year due to profit-margin erosion and the weakening yen. The company, which is listed on the main board, posted a net profit of HK$140.5 million in 2000. For the six months to June 30 last year, it reported a net profit of HK$24.72 million. The company is expected to post revenue of HK$2.44 billion for the year to December 31 last year, according to chairman and chief executive Senta Wong. He said sales generated from the trading business plunged 21 per cent to about HK$900 million, although turnover from manufacturing increased more than 10 per cent to about HK$1.5 billion. This compares with turnover in the previous year of HK$2.55 billion, of which trading and distribution accounted for HK$1.13 billion and manufacturing HK$1.32 billion. Mr Wong said the profit margin for electronics products had been squeezed by fierce competition. But he refused to disclose the extent of price cuts. He said the weak yen could also be blamed as Japanese clients accounted for about 60 per cent of turnover in the company's manufacturing business. The yen fell to a three-year low against the US dollar last month. The company will begin moving in April into its new factory in Dongguan, in which it has invested more than HK$200 million. Mr Wong said the new factory was double the size of the company's existing facility in Shenzhen, where it employs about 3,000 staff. He said the company's trading subsidiary in Taiwan was planning to list on the Taiwan Stock Exchange by the middle of the year.