By Martin Mou
Major Chinese tissue maker Hengan International Group said its 2019 net profit rose 2.8% on stronger revenue growth.
Net profit was 3.91 billion yuan ($549.6 million) while revenue grew 9.6% to CNY22.49 billion, Hengan said in a stock-exchange filing on Thursday.
The company said its 2019 gross profit margin ticked up to 38.6% from 38.2% in the previous year, largely as some of its business segment benefited less from a decline in wood pulp prices last year. Wood pulp is a key material for tissue paper.
Hengan expects wood-pulp prices to remain low in the first half of this year, which may ease downward pressure on its gross profit margin.
The company, which said it hasn't faced any significant adverse impact from the coronavirus pandemic, declared a final dividend of CNY1.25 per share.
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(END) Dow Jones Newswires
March 26, 2020 00:48 ET (04:48 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.