In its annual report published last week, China“s Shanghai Yaohua Pilkington Glass Co. Ltd. said that good management had kept the company profitable in 1996 despite fierce competition in the glass i…
In its annual report published last week, China“s Shanghai Yaohua Pilkington Glass Co. Ltd. said that good management had kept the company profitable in 1996 despite fierce competition in the glass industry. The company said that 1996 net profit fell to Rmb 80.39 million from Rmb 189.76 million in 1995, under international accounting standards. Under domestic accounting standards, the net was Rmb 113.56 million, 56% down on the 1995 figure of Rmb 263.193 million. Earnings per share dropped to Rmb 0.23 in 1996 against Rmb 0.67 in 1995, based on domestic accounting standards. The company“s board of directors has proposed a cash dividend of Rmb 0.15 per share based on the 1996 net, pending shareholder approval at a meeting scheduled for 30 May. The 1996 net profit had not been easy to achieve, the report said, because of intensifying competition. China“s glass production had grown too fast in the previous two years, causing prices to plunge in 1996 while demand on the international market also fell in 1996. The company said its main aim in 1996 had been to maintain market share and keep its production line running at high capacity. As a result, 1996 turnover was Rmb 589.535 million against Rmb 646.435 million in 1995, falling much less than profits. The firm also stated it had worked hard during 1996 to develop its glass processing technology.