Xinyi Glass Holdings, China“s largest exporter of auto glass, said net profit in 2006 rose 49.3% to HKD 388.2 million from HKD 260.11 million in 2005, on a surge in sales of automobile glass and cons…
Xinyi Glass Holdings, China“s largest exporter of auto glass, said net profit in 2006 rose 49.3% to HKD 388.2 million from HKD 260.11 million in 2005, on a surge in sales of automobile glass and construction glass. Revenue for the year ended 31 December 2006 was up 40% to HKD 1.93 billion from HKD 1.38 billion, largely driven by higher sales of float glass, construction glass as well as auto glass. Xinyi Glass declared a final dividend of HKD 0.07. Chairman Lee Yin Yee said in a statement to the Hong Kong stock exchange, Xinyi “anticipates continuous growth in demand for automobile glass, construction glass and float glass”, in 2007. Lee said the demand for environmentally-friendly and energy-saving products will grow on the Chinese mainland. With the 11th five-year plan, the country“s economic blueprint, advocating environmental protection and energy conservation, demand for the company“s low-emission coated glass products is expected to soar, he said. Xinyi“s revenue comes mainly from customers in Greater China and North America. It has customers in more than 100 countries. Xinyi is also benefiting from growing demand for autos in the domestic market, with increasing numbers of Chinese buying cars as disposable incomes rise. Sales of automobile glass, which accounted for 63.6% of revenue in 2006, increased 24% to HKD 1.23 billion. Revenue from Greater China, which includes the mainland, Hong Kong and Taiwan, rose to HKD 874.2 million, up 45.2% from HKD 536.69 million in 2005, while revenue from North America jumped 34.1% to HKD 659.04 million. The company generated HKD 205.8 million in 2006 from sales of float glass, which accounted for 10.6% of total sales. Lee said Xinyi is investing in research and development to help enhance cost efficiency and develop new glass products. The company is also exploring merger and acquisition opportunities to expand.