Mainland Headwear Holdings Ltd. reported profits jumped 43 percent in the first half, thanks to strong margin improvement and modest revenue gain.
Earnings reached HK$36.8 million, up from HK$25.8 million a year ago. Sales increased 19 percent to HK$451.5 million from HK$443.3 million.
Gross margins improved to 33.6 percent of sales from 29.7 percent. Gross profits increased 15 percent to HK$151.8 million due to strict cost control measures, including lower material and labor costs.
Ngan Hei Keung, chairman of Mainland Headwear, said, “At the Group’s careful planning, synergies have been achieved between the Shenzhen factory and Bangladesh factory, enabling the Group to maintain growth momentum and sustainable development of the Manufacturing Business. The overall business during the period under review, has recorded encouraging results as the rapid increase in production capacity at the Bangladesh factory has met the rising market demand for the Group’s headwear products.”
