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2002-9-9 03:02:00 p.m. HKT, XFNA
Kith Holdings to finalise study on northern China jv in Q4
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HONG KONG (AFX-ASIA) - Kith Holdings Ltd (1201.HK) chairman Andrew Hui
said the company is conducting a feasibility study on building a new
packaging/printing joint venture in northern China, which is expected to be
finalised in the fourth quarter.
At a news conference to release its first-half results, Hui said if the
joint venture turns out to be of similar size to its existing plant in
Yunnan, the project would require an initial investment of about 10 mln usd.
""We would seek to achieve investment returns in 3-5 years after the
formation of the joint venture, of which we hope to hold a controlling stake,
"" he said.
In the six months to June, Kith recorded a net profit of 21.407 mln hkd,
compared with 20.143 mln a year earlier, while sales rose to 352.332 mln from
331.376 mln.
Overall gross margin came in at 18.3 pct, with packaging/printing at 28.2
pct.
Executive director Paul Yau said the increase in sales was mainly due to
the addition of new clients at its packaging/printing division, which brought
in more turnover.
During the period, the packaging/printing and distribution/investment
divisions accounted for 59.3 pct and 40.7 pct of total sales, respectively.
In the packaging and printing business, cigarette companies were its main
source of income, which is likely to remain the case in the second half.
At the end of June, the company held cash of 115.719 mln hkd, compared
with 82.91 mln a year earlier, while its gearing ratio was 39.7 pct, up from
34.36 pct a year earlier.
Kith Holdings engages in the printing and manufacturing of high-quality,
multi-colour packaging products in China. The group owns production
facilities in Yunnan and Harbin, serving clients in the Yunnan, Sichuan,
Guizhou and Heilongjiang provinces.
julie.wang@afxnews.com
wj/tjc/jg
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