Nantong, Jiangsu – Chinese polyurethane mattress and pillow maker Healthcare Co reported CNY 4.6m ($723,000) net profit in the first quarter of 2018. This is down by 93% from the same period in 2017.
Revenue during the quarter, however, rose by 27% to CNY 611m. Reasons for the profit drop include rising feedstock prices. Increased promotional costs and foreign exchange loss also contributed, said the company’s financial statement.
Healthcare Co. is in an ongoing antitrust lawsuit it filed against four of China’s TDI makers. China’s legal system accepted the lawsuit in March.
The company also acquired Spanish mattress maker Maxcolchon during the quarter, said an announcement on the company’s website. Maxcolchon was set up in 2005. It has 40 stores across Spain, and has plans to add 22 new ones in the country.
Healthcare Co’s Mlily brand will be able to ‘share Max’s strong sales network as well as its world class logistics capabilities supporting our customers in Europe’, said the announcement.
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