Despite the world's economic woes, printed circuit board maker Meadville Holdings reported a full-year revenue of HK$5.63 billion for last year, representing 25.3 per cent growth from 2007.
However, the group's gross profit went up a mere 1.9 per cent to HK$1.08 billion because of rising inflation on the mainland - Meadville's primary manufacturing base - in the first nine months of last year, coupled with the underutilisation of production capacity in the last quarter, according to Canice Chung, the group's chief executive and executive director.
However, operating profit shot up 36.6 per cent year on year to HK$679.27 million, and the operating profit margin grew to 12.1 per cent.
Mr Chung attributed the group's impressive full-year results to a 30 per cent surge in sales in the first nine months compared with the corresponding period in 2007. 'Demand for our product was high, thanks to the robust global telecommunications market and the strong outsourcing trend [for production of printed circuit boards] in China,' he said. 'Sales in the fourth quarter of 2008 were similar to 2007.'
Net profit stood at HK$508.55 million, up 12.9 per cent from HK$450.56 million. However, the net profit margin eased to 9 per cent from 10 per cent in 2007.
The margin was squeezed by the mainland's overheated economy and the yuan's appreciation until September last year. In addition, labour and material costs essential to printed circuit board production rose, Mr Chung said.