NGAI Lik Industrial Holdings expects to see a steady growth in sales of its electronic products in China despite the imposition of new taxes. Chairman Lam Man-chan said the new taxes would not affect its mainland sales, but additional costs would have to be passed on to consumers. He said the company's production facilities in Dongguan, Guangdong province, had secured the right to sell 20 per cent of its finished products in the domestic market, leaving it in a better position to further penetrate the market. He said sales in China amounted to about $40 million last year, and he expected to see a growth of five to 10 per cent this year. Mr Lam said Ngai Lik had just leased about 50,000 sq ft of production space in Dongguan to expand the production lines of its audio electronic products. The additional space would increase the group's production capacity by about 15 per cent. Mr Lam said an audio-products manufacturing joint venture in Sichuan province, 65 per cent of which is owned by Ngai Lik, would be operational next month. The joint venture had the right to sell 30 per cent of its products domestically and would further enhance the company's production capacity and sales in China, he said. Ngai Lik paid about $10.14 million for its stake in the venture, which is 35 per cent owned by China Electronics Import and Export Sichuan Co. The plant will manufacture and sell portable radio-cassette players, mini stereo systems, car radio-cassette players and telecommunication products. For the six months ended September 30 last year, Ngai Lik reported a 3.7 per cent rise in profit to $29.54 million.