LONDON (Alliance News) - Chinese home products company Jiasen International Holdings Ltd on Tuesday said sales in 2014 increased by around 10%, but said it expects to report a fall in net profit due to a deterioration in its margins.
Jiasen said wall panels sales more than tripled in the year ended December 31, boosted by a near six-fold increase in sales to the property market. Furniture and fixtures revenue increased by 45%, against on the back of a robust rise in sales to the property market.
The performances in the two divisions offset some weakness in its doors business, where sales fell 38% primarily due to a 49% fall in sales to the property sector.
Jiasen said its net profit for 2014 is in line with its guidance of CNY160 million, down from CNY177.8 million in 2013, as its gross margin decreased to 31.4% from 36.8% due to an increase in the average cost of materials.
"Trading in our first full financial year as a quoted company has been positive. Our growth in revenue and order book has been driven by our success in winning larger and more luxurious property projects where we are able to supply higher quality fixtures and fittings and diversify our revenue streams to non-door products. The business has had a strong start to the year and we are confident of the future," said Chairman Weigang Chen.
Jiasen said it will release its full 2014 results in April.
Shares in Jiasen were down 1.9% to 26.00 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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