The total revenue comprised the receipt of license fee of HK$30 million pursuant to the on-going licensing arrangement and the sale of polyvinyl butyral (PVB) resin for HK$120 million, a basic raw material for the production of PVB film which is used to produce reinforced glass for both automotive industry and buildings.
Concurrently, cost of sales decreased 10.2% to HK$129.1 million from HK$143.7 million a year ago.
Hence, the group’s gross profit for 3Q17 came up to HK$21.1 million, 13.5% up from $18.6 million the previous year.
Meanwhile, administrative expenses increased 20.5% to HK$6.4 million compared to HK$5.3 million, due to associated professional fees in relation to the voluntary unconditional cash offer rolled out in March to May 2017.
In its outlook, Kingboard Copper Foil says the economic growth rate in China continues at a low level. With restriction orders imposed on residential units in first and second tier cities, the real estate and construction industry has been affected. This in turn affects the group’s PVB business.
However, the group will continue to improve the production efficiency, reducing the defect rate, lowering the production costs and shortening the lead time so as to deliver greater returns to the shareholders.
Shares in Kingboard Copper Foil closed 37 cents on Wednesday.
