Engaged in the processing production and trading of precious metal electroplating chemicals including gold salt palladium salt silver salt and rhodium sulphate in the PRC and HK. These electroplating chemicals are sold under the Group's own brand name "Kenlap".
Business Review - For the year ended March 31 2005
During the Year the Group has according to the laid down strategy and development plan increased production output enhanced marketing activities and embarked on expansion plan. Business review on various areas is as follows:
(1) Production and subcontracting
Turnover of production and subcontracting in total amounted to HK$443 million during the Year representing increase of 20% over that of last year. Key contributor to the increase of turnover is gold salt production which has increased by 32% compared to last year. During the Year most of the production and subcontracting activities including gold salt manufacturing has been handled by our Zhuhai plant and our Hunghom plant has mainly been used as back up centre and warehouse.
(2) Trading
Thanks to the successful marketing efforts together with the continuous growth in demand of precious metal electroplating chemicals in China especially in the Pearl River Delta the Groupˇs trading business has shown an increase of 55.5% over that of last year to reach HK$574 million. Profit margins for the various products traded by the Group during the Year have remained stable as compared with previous years.
(3) Others
The Groupˇs research and development team has during the Year continued to develop new products with market potential. A number of new products have been developed including sodium gold sulphite silver cyanide gold chloride palladium chloride tetra-ammine palladium chloride etc. These new products will be out in the market after the production line is in place by the end of 2005.
The setting up of the silver nitrate production line and other new production lines are in good progress and the management of the Group expects that they will be operative by second half of 2005.
During the Year the Group has invited professors and specialists in Chemical Engineering and Environmental Protection Faculty of leading universities in China to our Zhuhai factory for site visits and discussion of joint projects. The Group is also working with The Department of Chemistry of the University of Hong Kong regarding the joint application for the Innovation and Technology Fund provided by the Hong Kong SAR Government on the research of the advanced technology regarding eff icient extraction of trace precious metals in industrial effluents.
Source: Ocean Grand Chem (2882) Annual Results Announcement
