Xinyi Glass: net profit drop with shares falling

Xinyi Glass Holdings reported a sharp drop in its 2011 net profit, with profit attributable to shareholders falling 19.5% compared to 2010, while gross profit margin decreased 28.6% due to price competition in float glass and solar glass products.

Shares of Xinyi Glass Holdings decreased 5.83% after the company reported a sharp drop in its 2011 net profit. Profit attributable to shareholders fell 19.5% compared to 2010, while gross profit margin decreased 28.6% due to price competition in float glass and solar glass products.
Overseas segments including North America and Europe saw a 34% growth in sales to HKD 2.86 billion due to booming demand for automobile glass. “We expect the gross profit margin to improve as more construction projects in China start this year,” said chief financial officer Tung Ching-sai.
A full year dividend of 16 HK cents for 2011 was declared, down 23.8% compared to 2010.