Vinda International (3331) announced its annual results for 2018. Total revenue increased by 10.3% to $14.87 million; net profit went up by 4.6% to $649 million; earnings per share was 54.4 cents, up by 3.4%; final dividend per share was 14 cents.

In the major business segment, total revenue of tissue rose up by 11% to $12.11 billion, accounting for 81% of the company’s total revenue; Personal Care increased by 7.3% to $2.76 billion, accounting for 19% of the company’s total revenue. At the same time, the company increased the production capacity at its new Yangjiang and Hubei factory by 60000 tons. As of the end of last year, the total annual production capacity for papermaking reached 1,220,000 tons.

Vinda Chief Executive Officer and Executive Director Christoph Michalski commented that the decline in gross profit margin was due to rising prices in wood pulp. In response, in order to optimize product mix and save costs, the company reduced its production costs by lowering the product price. In respect of another business segment, Michalski said that there was a noticeable increase in the revenue of Personal Care; the ratio of Tissue to Personal Care was 8.2. Looking forward, he expects that there will be significant growth in the Personal Care segment.

Chairman and Executive Director Li Chao Wang also believes that price hikes in both products were mainly caused by a rise in pulp price. However, he expects that the pulp price will slip back down in the second quarter. Concurrently, the company will continue to control production costs, so Tissue prices in Hong Kong and the Mainland will not surge.