Tue, Apr 10, 2018 - Page 12 News List

Ginko eyes sales growth due to production lines

By Ted Chen  /  Staff reporter

Ginko International Co (金可國際), which makes contact lenses and lens-care solution, yesterday said that sales growth would resume this year as the company recovers from production disruptions.

The company saw its earnings dip last year as it weathered a nearly month-long government-ordered shutdown at a plant operated by its subsidiary in China, Jiangsu Horien Contact Lens Co Ltd (江蘇海倫隱形眼鏡), and addressed concerns about its average collection period for accounts receivable.

Growth this year would be driven by an expansion in manufacturing capacity, as four new production lines are set to go online in Taiwan and three in China at the beginning of next quarter, company spokesperson Chang Tai-jung (張泰榕) said at an investors’ conference in Taipei.

“Overall, contact lens shipments are expected to rise 30 percent annually to reach 360 million units by the end of this year,” Chang said.

The company has revamped its product line in Taiwan to produce higher-priced products for the Japanese market and has set up its own e-commerce storefront in China to boost direct sales to consumers, Chang said.

Chang said that while the company’s market share in China last year dipped from 33 percent to about 25 percent due to the plant shutdown, it is still the leader in contact lenses and lens-care solution.

The firm expects double-digit percentage growth in sales this year thanks to expansions in production capacity and sales channels, while regaining lost market share, Chang said, adding that contract manufacturing orders are expected from new Japanese customers next quarter.

Ginko reported that sales last month rose 15 percent annually to NT$613 million (US$20.99 million), bringing aggregate revenue in the first three months of this year to NT$1.63 billion.

Last year, the company reported that net income plunged about 36 percent annually to NT$971 million, from NT$1.52 billion in 2016.

Earnings per share dipped to NT$10.5 from NT$16.41, according to a company filing with the Taiwan Stock Exchange.

Gross margin fell to 54 percent last year from nearly 60 percent the previous year, while revenue dipped 9 percent annually to NT$5.95 billion from NT$6.54 billion, it said.

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