Hong Kong — Sinomax, which makes flexible foam and mattresses, recorded sales of HK$ 1.5 bn ($198.1m) in the first half of 2019. This is lower by 27% than the same period in 2018.
Gross Profit across the business rose 5% and hit HK$ 347.3m in the first half of 2019.
The company said '2019 is a very challenging year. There is a general slowdown in the economy around the world. We also faced uncertainties over US-Canada trade war and the anti-dumping investigation initiated in the US. All these events will inevitably affect our normal business growth adversely.
Sinomax said that it has set up production facilities in Vietnam and trial production has started in the second quarter of 2019. The facilities are gradually being approved by our customers.
The company now has factories in China, the US and Vietnam. It said it can now from these countries to minimise costs including production, tariffs and transportation.'
Over the rest of the year, Sinomax plans to sell more directly to the consumer, and via Ecommerce. It is going to promote its mattress brands Octaspring, SPA Supreme and Sinomax to corporate customers with an eye to sales in this segment.