Published: Friday June 29, 2012 MYT 2:34:00 PM
Updated: Friday June 29, 2012 MYT 2:38:13 PM
China Stationery ventures into anti-tampering plastic envelope
KUALA LUMPUR: China Stationery Ltd (CSL), an integrated plastic stationery company, has secured an anti-tampering plastic envelope trial order contract from China Post.
China Post is a group entrusted by the Chinese government to engage in the postal business on a competitive line.
CSL executive director Kwan Chun Jut said on Friday that for a start, the company needs to produce 150 million anti-tampering plastic envelopes for China Post before securing any further contracts.
"The product is designed by the in-house research and development team to meet market needs and we therefore have to ensure it is up to standard," he told Bernama after the AGM.
"We are the first company in the world using the technology to produce the plastic envelope and hope to start the first production soon," he said.
He said the company has about a 0.5% market share in China and is expecting the number to growth within the next five years.
"To further enhance its position as the largest manufacturer of plastic filing and storage products in Fujian Province, China, China Stationery has entered into a contract to purchase new machinery for its new plant to increase production capacity and market share," he added.
On the group's prospects for 2012, Kwan expects the performance to remain favourable, anchored by higher sales from its patented and non-patented products.
"We expect growth to continue to be underpinned by our innovative patented and non patented products segment, especially our future products," he said.
The group's house-brand products are marketed in China and globally in over 56 countries to more than 400 customers including distributors, retailers and corporations.
For the financial year ended Dec 31, 2011, the group recorded 465mil renminbi in profit after tax and achieved revenue of RMB1.8 billion. - Bernama