Hong Kong – Polyurethane foam and home furnishings maker Sinomax Group saw its US sales drop by 14% last year to HKD 1.1bn ($142m) with a rise in export volume, according to the company’s annual report released in March.
Sinomax exports its memory foam pillows, mattresses and quilts in bulk and mainly to the US. “Stringent Buy American Guidelines and retailers’ preference for local products has been curbing the Group’s growth in the US market,” said the annual report.
The company recently announced plans to build a plant in Tennessee to help its US sales.
The company also has retail stores in Hong Kong and China and sells polyurethane foam to furniture makers across the country. Last year it upped its total revenue by 7% to HKD 2.9bn, but net profit fell by 9% to HKD 185m.
Sinomax’s furnishings retail business – including that sold through distributors and e-commerce – grew by almost 50% to HKD 567m in 2015. Its brick-and-mortar store sales showed a slight decrease but last year still saw the opening of 17 new stores.
Boosted by the growing demand for quality furniture in China as well as the complete takeover of foam maker Shanghai Luen Tai Polyurethane with 8kT/year capacity in 2015, Sinomax’s foam sales last year increased by 19% to HKD 1.1bn.
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