Mainland tissue paper firm Vinda International Holdings Ltd. (03331.HK) aims to soak up higher gross profit margins after consolidating businesses within the group, the Hong Kong Economic Journal reported Tuesday, citing chief executive Zhang Dongfang.
The group’s first-half net profit dropped 21.8 percent from a year earlier, dragged down by a weaker yuan. Management said the group might hedge to reduce foreign exchange risks.
Vinda is in the process of buying the mainland, Hong Kong and Macau tissue and personal care products businesses of Swedish firm Svenska Cellulosa Aktiebolaget’s, Vinda’s biggest shareholder.
Zhang said it will take time to consolidate its purchases and the group has no further merger and acquisition plans.
She also said e-commerce could become a source of growth, possibly contributing over 10 percent of the group’s total sales.
Online sales rose to 2 percent of the total in 2013, up from 1 percent in the first six months of last year. They climbed to 5.1 percent in the first half of this year.
Vinda has also sought to demonstrate its products’ durability by creating and promoting a series of princess dresses for mainland consumers.
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