Hong Kong, 15 April 2008 – Vedan International (Holdings) Limited (“Vedan International”) achieved substantial growth in 2007, with net profit up by 54.4% to US$16,856,000 (around HK$131,500,000). Profit margins also continued to improve, with gross profit margin and net profit margin at 19.1% (2006: 18.4%) and 5.3% (2006: 3.8%) respectively.
Basic earnings per share of the Group were approximately 1.11 US cent, 54.2% higher than in 2006. The Board of Directors recommended payment of a final dividend of 0.291 US cent. Together with the interim dividend of 0.262 US cent already paid, the total dividend for the year was 0.553 US cent, representing a dividend payout ratio of around 50%.
Mr. Yang Tou Hsiung, Chairman of Vedan International, said, “The main revenue growth contributors in 2007 were the increased MSG export of our Vietnam operation, growing modified starch sales in the PRC market and rising lysine price. By effectively controlling raw material costs though increased usage of molasses, the Group lowered the production cost of major products such as MSG, GA and lysine, hence achieved satisfactory growth for its businesses.”
The Group maintained a strong financial position. As at 31 December 2007, it had bank deposits and cash amounting to US$17,706,000, bank loans decreased substantially by 38% to US$45,478,000. Net gearing ratio was 10.8% (2006: 23.0%) and current ratio was 2.2 (2006: 1.6).