Mr Cheung Kwok Wa, Chairman of Kingboard Laminates said: "The overwhelming market response to our initial public offering reflected market confidence in the solid business fundamentals of the Group. The success of the initial public offering laid a new milestone for the Group and granted the Group an access to the international capital markets so that Kingboard Laminates now have the financial agility to capture additional growth opportunities as they arise."
On the back of positive market conditions especially at the emerging markets in 2006, demand for consumer electronics products remained robust. Being the largest laminate producer in the world, Kingboard Laminates was able to take full advantage of its vertically integrated business model with competitive cost structure to continuously gain share in the global laminate market. Its comprehensive product portfolio enabled the Group to further broaden its customer base and enter new markets. Sales of paper laminate, glass epoxy laminate and composite epoxy material (CEM) laminate each continued to attain respectable growth in the year.
Consolidated revenue of the Group was up 38% from fiscal year 2005 to HK$8,472.4 million. Earnings before interest and tax ("EBIT") rose even higher by 47% to HK$1,960.3 million over previous year. Volume sales were up by around 14% with the average monthly shipment reaching 6.7 million sq. meters. Revenue growth had outpaced volume growth because of tight supply of upstream raw materials which resulted in higher average selling price of laminate.
The remarkable operating performance has put Kingboard Laminates in an excellent position to invest in future earnings growth. The Group will continue to focus on its core strategies to expand market share while preserving competitive cost structure with our winning vertically integrated business model.
The Group sets to expand the monthly production capacity of glass epoxy laminate by 35% in 2007. To capitalize on the cost advantages, the production facilities at Fogang, Guangdong province, will expand further by 400,000 sheets monthly by end of 2007. The new glass epoxy laminate factory in Jiangyin, Jiangsu province will raise its monthly production capacity by another 600,000 sheets by end of 2007. This is in line with the Groups' strategy to enhance its market presence in eastern China where there is rapid growth in electronics industry. In addition, to support laminate capacity growth, the capacity expansion of upstream component materials including copper foil, glass yarn and glass fabric is planned in tandem in 2007. The new epoxy resin plant in Jiangyin, Jiangsu province will commence trial operation by April 2007. All this additional capacity will strengthen cost competitiveness of Kingboard Laminates and enables the Group to capture market share in future.
Financial Highlights| Year ended Dec 31, | ||
| 2006 | 2005 | |
| HK$'million | HK$'million | |
| Turnover | 8,472.4 | 6,131.2 |
| Profit before tax | 1,887.3 | 1,233.1 |
| Net profit attributable to shareholders | 1,638.1 | 1,078.2 |
| Basic Earnings per share | HK57.3 cents | HK39.5 cents |
About Kingboard Laminates Holdings Limited
Kingboard Laminates Holdings Limited is the largest laminate producer in the world with 16 manufacturing facilities in the PRC. It was successfully listed on the main board of the Stock Exchange of Hong Kong Limited on 7 December 2006.