Hong Kong — Sales at flexible foamer, Sinomax were lower by 27% in the first half of 2019 than in the 2018 period.
They reached HK$ 1.4bn ($ 188m) in the first half of 2019. Despite this, the company managed to increase gross profit across the business by 5%. This number hit HK$ 365m in the first half of 2019.
The first half was tough for the company. The US-China trade dispute, an antidumping investigation into its Chinese products imported to the US all hit the company.
Sinomax said it has set up a facility in Vietnam and started trials. Coupled with its factories in China and the US the company said it can minimise costs of production, tariffs and transport. It will also invest in direct-to-consumer and eCommerce sales channels.
It will also upgrade machinery across its sites.
The company managed to increase profit by taking advantage of the lower costs of TDI in the first half of 2019 compared with 2018. A change in accounting policy also enabled the company to reclassify factory rental and gain HK$ 3.8m.