Chinese tissue giant Vinda posts flat growth with no further acquisition plans
Company chairman said he was aware of the Chinese government’s tightening reins on Chinese companies’ overseas deals and had no plans for further expansion in foreign countries
Chinese tissue maker Vinda International posted flat net profit growth for the first half of the year ended June 30, down 0.2 per cent to HK$321 million from the same period one year ago. The company said it had no plans to expand overseas at this stage amid reports of the Chinese government tightening its reins on companies’ overseas acquisitions.
The company saw its revenue grow by 11.3 per cent to HK$6.31 billion for the first half of the year, with 80 per cent and 20 per cent being generated from its tissue business and personal care products respectively.
The increase in revenue was mainly due to a significant increase in the sales of its softpack and wet wipes, as well as a rise in sales of feminine care products, according to the company.
It proposed an interim dividend of 5.0 HK cents per share, which was the same as the first half of 2016.
“We have sufficient cash to support our expansion plans but now, we don’t have any such plans,” he said.