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V-Care to start three baby diaper production lines

31 Mar '12

6 min read

The Group's personal care products business has been developing satisfactorily, and the Group's joint venture ¨C V-Care Holdings Limited (V-Care), officially launched its first ever baby diaper brand Babifit during the Year. V-Care launched 24 baby diaper SKUs, separated as three product lines to distinctly target customers from the mid- to up-market, the mid-market and the low-end market. Currently, V-Care is proactively constructing three baby diaper production lines in the plant located in Hubei, with an expectation that the first production line will commence production in May 2012.

By that time, V-Care can enrich its product offering with flexibility and increase the number of SKUs. Combined with dedicated sales channels for the distribution of baby diapers and a series of field marketing and promotional activities, Babifit is expected to show steady growth, and in time, the personal care products business will contribute greatly to the Group's earnings.

As at 31 December 2011, the Group's financial position remained healthy. Cash and cash equivalents were HK$715 million, and net gearing ratio was maintained at a healthy level of 39.4%.

Mr. Li Chao Wang, Chairman of the Group concluded, China has the fastest growing personal care products market globally which creates huge potential for expansion for Vinda International, and is a catalyst to drive our future growth. Looking at 2012, wood pulp prices will stay volatile. China's central government will strengthen its environmental protection regulations and will revoke production capacity limitations in the industry, causing competition to intensify.

Thus, the Group must pragmatically accelerate the implementation of 6th five-year plan specifically for areas of business development including, brand enhancement, product innovation, sales channel and production capacity expansion, etc. Meanwhile, the Group will reorganize the marketing structure and management strategies for the northern and southern regions in order to serve the rapidly changing fast-moving consumer goods market of China. We will continue to adhere to developing high quality products, maintain our prudent fiscal policies and accelerate development for our personal care products business so as to lay a solid foundation for the long-term growth of Vinda International.

Vinda International Holdings Limited