Man Sang International Ltd. on Thursday reported a year-over-year sales increase of 6.2 percent to approximately 40.8 million for the first nine months of the fiscal year.
The increase in net sales was mainly due to year-over-year increases in sales of South Sea pearls by 13.9 percent and assembled pearl and jewelry products by 11.3 percent.
Profit for the Hong Kong-based pearl company increased 48.5 percent to $6.3 million, due to improved production efficiency, a gain from disposal of investment property, and investment income from effective treasury management.
As at Dec. 31, 2007, the company had cash balance of approximately $71.3 million.
The booming economy in China, the increasing consumer spending in mainland China and Hong Kong, and improving awareness among customers of the its products and brand was reflected in the rise in sales of its South Sea pearls and assembled pearl and jewelry products, the company said.
“We are pleased that the group achieved satisfactory results for the first nine months of the fiscal year,” said Cheng Chung Hing, Man Sang chairman. “Looking forward, though facing a fluctuating global economy, we expect our pearl and jewelry segment to maintain steady growth and our business to flourish overall next year. We will expand our customer network globally aiming for especially increment in markets with high growth potential and continue to keep production cost under control.”
The company owns a 55 percent stake in the China Pearls and Jewellery City Holdings Ltd. project, which is under development. The project’s aim is to serve as a global trading platform for different parties in the pearl and jewelry industry. Man Sang said nmarket response has met expectations with several companies signed contracts for preferred units since it took a stake in the project in April, 2007. Construction of the CP&J City Project has been on schedule and part of phase one of it is expected to be completed by March. A grand opening ceremony is planned for April.
“The CP&J City Project is regarded as a major project by the Zhejiang provincial and Zhuji municipal governments,” Hing said. “We expect investors to be impressed by the gigantic scale and world-class supporting facilities of the CP&J City project as a major gateway to global pearl and jewelry market.”