Gelonghui March 25 | Hongxing Printing Group (00450.HK) announced that in 2023, the global market will be full of challenges and uncertainties. The slow economic recovery, rising interest rates, inflationary pressure, and geopolitical tension have made the business environment volatile and unstable. Under these circumstances, Hongxing Printing Group is committed to providing high-quality value-added products to domestic and foreign customers to promote business development. Benefiting from the improvement in gross margin and the gradual recording of one-time income related to land acquisition compensation for the old factory building in Wuxi, the profit attributable to the company's equity holders reached HK$135 million (2022: HK$66 million), an increase of 104.66% over the previous year; the company's equity holders should have earned HK15.0 cents per share.
The company has adopted multiple strategies to increase gross profit and establish a solid foundation for future development, including focusing on developing high-value-added products and services for a long time, reducing labor costs and improving efficiency through high automation, and adopting flexible paper procurement strategies while taking advantage of weak paper prices, so that all business departments can increase profits. These factors, together with the slowdown in the devaluation of the RMB, helped the Group increase gross margin by 2.1 percentage points to 16.3% compared to 2022.
HH Dream, a production facility established by the company in Vietnam in 2019, is clearly of great value in strengthening the Group's diversified production capacity, decentralized production base and flexibility. The facility maintained an ideal production capacity utilization rate during the year, and its turnover continued to increase. It is committed to providing paper toy manufacturing and packaging printing services for the book and packaging printing business.