Hong Kong-based mould maker Lung Kee (Bermuda) posts profit

SINGAPORE - Hong Kong-based mould maker Lung Kee (Bermuda) on Monday posted a net profit of HK$75.7 million (S$13.1 million) for the six months to June 30, a rise of 16 per cent, compared with the same period the previous year.

Quarterly figures were not available.

Revenue dropped 10.1 per cent to HK$1.06 billion from the preceding year, on the back of "the unfavourable aggregate business operating environment".

The firm noted after Brexit, the export business to European countries slowed down, owing to the weak economic performance in those countries.

"Despite there was a sign that the economic growth pace of China was slow down as affected by the sluggish performance in external economy, the turnover of automobile industry was still booming," the firm said.

That helped stimulated the rapid growth of automobile parts and components business, which further boosted the demand for quality products the firm produced.

Lung Kee added that coupled with the customers' shortage of technical labour, some of them ordered mould products with high machining contents, which led to an increased in the income and greater profit margin.

Earnings per share for the six months to June 30 stood at 11.99 HK cents, up from 10.33 HK cents last year.

It declared an interim dividend of seven HK cents for the period, and an interim special dividend of 5 HK cents to be paid on or around Sept 14.