Toymaker says strategy will aid Europe goals, while cutting costs at new plant
Toymaker Matrix Holdings aims to reduce operating costs at newly acquired Shenzhen production facilities while looking to break into the European market through acquisitions.
The group recorded a 15.7 per cent increase in net profit to $151.81 million last year, compared with $131.16 million in 2003. It completed its acquisition of United States-based Shelcore Group's Shenzhen plant and distribution operations in January, paying $66.3 million, which will be included in this year's result.
'In the toy industry, acquisition of other toy companies is the only way to ensure profitable returns to our shareholders,' chairman Cheng Yung-pun said.
'We will look to those companies with minor problems in their management. This is because we can then buy them at cheaper prices and fix the problem ourselves.'
Acquisition of European toy companies offered distribution benefits in that market, Mr Cheng said, announcing the annual results.
Aside from the Shelcore operations in Shenzhen, Matrix has a plant in Zhongshan and two others in Danang, Vietnam.