Hengan down 30pc

Hengan International Group saw attributable profit drop 30.8 per cent, to HK$209.16 million, in the year to December 31.

This was despite a turnover up 3 per cent, to HK$1.16 billion, at the mainland's largest manufacturer of sanitary napkins.

Earnings per share was 20.9 HK cents, down from 29.9 HK cents in 1999. The board of directors recommended a final dividend of 8 HK cents per share.

Chairman Sze Man-bok attributed the decline to growing competition in the market, which prompted the company to increase its promotional expenses.

'The rise in raw material prices, as well as higher promotional and sales expenses, dragged down our profit,' he said.

Increased provisions for bad debts and obsolete equipment also reduced earnings.