Tonic Industries capital expenditure reduces to HK$80 mln this year

Ling Siu Man Simon, chairman and managing director of Tonic Industries Holdings (0978), explained that the annual profit of the company to late March slumped 82.4%, because the material prices soared, the sales in the second half of the year was tranquil and the development of the new products were delayed technologically. However, he noted that as the company was strengthening the cost control, a satisfactory earnings was expected this year. Moreover, Mr Ling stated the capital expenditure of the company last year was HK$120 mln, which would be used to build new factories and increase the digital facilities, while as the company hoped to make full use of the current equipments, there would not be any large capital expenditure. The capital expenditure of the company this year was about HK$70-80 mln, expected Mr Ling.

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