According to the latest report of Japan Marketing Survey Co., Ltd., the Group maintained the No.1 position in the global laminate market with a market share of 11.8% in 2007. Mr Cheung Kwok Wa, Chairman of the Company said: “Despite a tough operating landscape in the first half of 2008 with temporary electricity disruption at certain plants located in Lianzhou, Guangdong province for about one week just before Chinese Lunar New Year and volatile commodity prices, our dedicated team persevered and made further advances in the market place. With our leading market position backed by a diverse customer portfolio across broad based applications, we are determined to leverage on our competitive strength to create more value for our shareholders.”
In the first half of year 2008, laminates business achieved steady growth driven by organic expansion laid down in 2007. Volume sales achieved 8% growth with average monthly shipment reaching 8.0 million square meters. Upstream material capacity was further enhanced to strengthen the Group’s vertically integrated business model, as the new glass yarn plant in Qingyuan, Guangdong province and new glass fabric plant in Lianzhou, Guangdong province started trial production in January and June 2008 respectively.
The Group is planning to add new production capacity in Lianzhou copper foil plant in the second half of 2008. In addition, our glass epoxy laminate plant in Jiangyin, Jiangsu province will increase monthly production capacity by 400,000 sheets in the third quarter of 2008 to enhance the Group’s market position in eastern China.
Mr Cheung concluded: “In the second half of 2008, even though global economy is still very much affected by the ongoing credit crunch and inflationary pressure, domestic consumption in emerging markets especially China is expected to maintain robust growth momentum. Leveraging on our sound financial strength, excellent business model and strong operational presence in China, we have unwavering confidence in the growth prospects of the Group. The Group currently maintains a steady laminate order book. Recent correction in commodity prices should help to facilitate cost control initiatives. Backed by our unrivaled economy of scale and competitive cost structure, we are fully convinced that there are still enormous growth opportunities in the global laminate market.”
Financial Highlights| Six months ended June 30, | ||
| 2008 | 2007 | |
| HK$'million | HK$'million | |
| Turnover | 5,242.3 | 4,806.3 |
| Profit before tax | 1,040.9 | 1.020.1 |
| Net profit attributable to shareholders | 928.8 | 903.1 |
| Basic Earnings per share | 31.0 cents | 30.1 cents |
| Interim dividend per share | 12 cents | 10 cents |
About Kingboard Laminates Holdings Limited
Kingboard Laminates Holdings Limited (HKEx: 1888) is a leading vertically-integrated electronics materials manufacturer, specializing in the production of laminates, a fundamental material ultimately used for the production of all kinds of electronic products. The Group is the global leader in rigid laminates, with a strategic network of 21 manufacturing facilities in the PRC. It was successfully listed on the main board of the Stock Exchange of Hong Kong in December 2006.