Hong Kong – Sinomax, the listed flexible foam and bedding manufacturer, generated sales of HK$4.26bn ($544m)in 2021. This is up 32.2% on the same period last year.
Gross profit across the business increased by 14.9% to HK$ 716.9m.
The company's sales in China grew by 37%, from HK$1.6bn in 2020 to HK$2.2bn in 2021. In North America, sales grew from HK$1.4bn to HK$1.6bn, a 14.7% increase in the period, while sales in Europe and other overseas markets were up 121%, from HK$209.6m to HK$463.6m in the financial year.
Sales in China improved as the country started to recover from the coronavirus lockdowns. In North America, Sinomax said it had won more new customers, and had been successful in broadening its base of customers
Although sales were up, gross profit margins were squeezed because of higher raw material costs and higher transportation costs in 2021 than in 2020.
Business was made harder in 2021 because of coronavirus, the US-China trade war and anti-dumping duties on products imported to the US. Bed-in-a-box sales were strong, and grew in the US.
Sinomax confirmed there were delays to the start up of its facility in the US, but expects production output will gradually increase in the second half of 2022.
Looking at this year, Sinomax added that it expects raw material costs to stabilise in the first quarter of 2022.
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