Van Shung Chong Holdings' interim net profit jumped 156 per cent year on year on the back of increased sales and an improved profit margin.
The steel materials supplier's net profit in the six months to September 30 rose to HK$37.24 million from HK$14.52 million in the same period last year.
The growth of net earnings was higher than that of the turnover, which increased 25 per cent to HK$1.27 billion, reflecting an improved profit margin.
Chairman Andrew Yao Cho-fai said that thanks to better control over inventories and supplies, the company's overall gross margin increased by 6 per cent over the period.
The profit improvement was also due to the absence of a discontinued processing operation which made an operating loss of HK$2.02 million a year ago.
In spite of the profit growth, the company did not declare an interim dividend.
Mr Yao said the company would instead use its cash to finance a proposed share buy-back offer, which he said could benefit shareholders more than a dividend.
