YIPS Hang Cheung (Holdings) believes that next year's business will be more profitable than the 1992-93 financial year's, which saw a worse-than-expected performance.
The paint and mixed-solvent manufacturer had previously targeted a growth rate of more than 20 per cent, but the actual figure was about 16 per cent.
Chairman Tony Yip said the less favourable result was due to the fluctuation of the yuan earlier this year, and losses from the group's operations in Singapore and Malaysia.
But Mr Yip said that once the group's new plants in several cities in China were operating later this year, they would contribute to overall profitability.
Mr Yip said the lubricant manufacturing plant in Zhanjiang would be a crucial project in the future.
''The mainland market for lubricants is huge. There is no reason why our product should not sell well, considering our low price and convenient delivery service,'' he said.
