HONG KONG: Top Form cites Cambodia concerns amid H1 profit
- H1 net profit of HK$9.4m
- Net sales drop 1.3%
- Concern over Cambodia operations
Lingerie maker Top Form International has moved to a net profit in its first-half but said ongoing wage conflicts in Cambodia are causes for concern.
For the six months to the end of December, the company recorded a profit after tax of HK$9.4m (US$1.2m). This compared to a loss of HK$3.3m in the year ago period.
Top Form said its ongoing efforts to maintain cost control and competitiveness in all areas of its business have brought "encouraging results".
Sales, however, dropped 1.3% HK$540.4m.
The company said political and social unrest in Thailand exacerbated since last November have not affected its operations near the Northwestern boarder of the country.
However, in Cambodia, which accounted for 5% of Top Form's global capacity in the first half, the firm said there is cause for concern for its operations.
"We will closely monitor the situation and take necessary steps to respond to the disruptions, if any, to our operation in this country," the company said.
"In order to minimise the negative impacts brought on by the labour unrest to business, we have reshuffled our orders between Cambodia and our other regions. We have no plan to increase our Cambodia capacity in the short term but we shall review our options when the labour situation stabilises."
In 2013, China accounted for 49% of the group's global output, down from 57% a year ago following its decision to expand capacity overseas. Thailand accounted for 46%.
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