Hong Kong — Sinomax, which issued a profits warning in early March 2019, had total sales of HK$ 4.3bn ($543m) in 2018, up 1.9 % on the previous financial year.
Gross Profit across the business fell 6.9% reaching HK$ 772m in the 2018 financial year.
This was because of the high price of TDI in 2018 and because of the delay to a contract in North America. The trade battle between the US and China also affected profits. Sinomax cut its research and development budget from HK$ 77m in 2017 to HK$ 70m in 2018 in a bid to curb costs.
The company's China business had sales which rose 9.3 % between 2017 and 2018. They reached HK$ 2.6bn in the 2018 financial year. This compares with HK$ 2.3bn in the previous year.
The company does not break out the profitability of its regional businesses. However, it did say that the Chinese business won a larger share of the market there.
Meanwhile, according to a filing on the Hong Kong Stock Exchange, the company's North America business, sales fell 5.5% between 2017 and 2018. They reached HK$ 1.6bn in the 2018 financial year. This compares with HK$ 1.7bn in the previous year.
The fall in sales was due to a delay in a contract with a new customer.
At the same time it's Europe business experience a 45% fall in sales between 2017 and 2018. Sales reached HK$ 51m in the 2018 financial year. This compares with HK$ 93m in the previous year.
Generally weak economies in Europe and the rest of the world were blamed for the poor performance of this division.
The board does not recommend a dividend for the year.
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