KUNMING Machine Tool Co attributes its satisfactory results for the year ended December 31 to further reform of production management which increased total output beyond expectations. Situated at Ciba, on the outskirts of Kunming, southwestern Yunnan province, the leading machine tools manufacturer in China was listed on the Hong Kong Stock Exchange on December 7. The company announced yesterday that pro forma profit after taxation but before extraordinary items was 72.5 million yuan based on Hong Kong accounting standards, compared with 16.42 million yuan for 1992. Turnover for the year amounted to 136.8 million yuan, compared with 93.14 million yuan. Pro forma weighted average earnings per share for 1993 were 57.3 fen. Based on Hong Kong accounting standards, after deducting net interest income on application proceeds of 40.8 million yuan for the H-share issue, the company's profit after taxation was 31.7 million yuan in 1993, an increase of about 93 per cent over 1992. A final dividend of 0.1 yuan per share was recommended by the board. During the year, sales increased 45 per cent as a result of expansion of the sales network and improved efficiency due to the adoption of a salary scheme linking compensation with ability and performance. Sales offices in Beijing and Guangzhou were established in the second half of 1993 to strengthen the company's presence and sales activities in the two major business centres. About 92.2 per cent of sales in 1993 came from the domestic market, with the balance exported overseas. Chairman Zhao Zhongyue said: ''The company's satisfactory results were attributed to its further intensification of management reform in 1993. ''Total output for the year exceeded its product target as a result of strengthened production management, development of new products, stringent control of quality and enhanced infrastructure management.'' According to statistics of the Chinese Machine Tools Corp, sales of the group's large horizontal boring machines and jig boring machines in 1993 represented 33.4 per cent and 92.6 per cent share of their respective markets in China. During the year, Kunming Machine Tool Co was named among the top 100 ''Good Quality Enterprises''. The company has successfully developed two new products: the TPK4680 precision jig boring machine and the TH5456 vertical machining centres. TH5456 is the first domestically produced numerically controlled machine tool equipped with a Chinese-character user interface and CAD/CAM capability which enables it automatically to design, generate tooling processes, and process on three dimensional curved surfaces. ''The successful development of these new products served to broaden the company's product range and to enhance its competitiveness,'' said Mr Zhao. In 1994, the company would step up new product development and technology upgrade of production facilities, said Mr Zhao. It would invest in the construction of additional factories, upgrading of facilities and purchase of new equipment. New products scheduled for production in 1994 include the TH5445/Q machining centre, TH5445 machining centre, THM5445 precision machining centre, KIR-1 industrial robot, CLZJ80L co-ordinate measuring machine. Mr Zhao said the company would also increase its production capacity and develop new sales channels in 1994, further enhancing its competitiveness and profitability.