Tough times highlight Li & Fung model
Article Abstract:
Li & Fung Ltd.'s strategy for success is a model to follow among family-owned companies in Asia in the midst of a regional economic downturn. Brothers William and Victor Fung, managing director and chairman of Hong Kong trading company Li & Fung, relied on the knowledge they attained from Harvard University to transform the company. The brothers modernized the company by bringing in nonfamily directors and people to manage the company, as well as new systems. Li & Fung was among the first family-owned firms in Asia to go public. Since the company relisted its trading business in 1992, net profit has been rising at a yearly rate of 26%. Analysts project a 28% growth in net profit for Li & Fung in 1998.
Comment:
Its strategy for success is a model to follow among family-owned companies in Asia in the midst of a regional economic downturn
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Noodle maker gone limp?
Article Abstract:
Tingyi (Cayman Islands) Holdings Corp.'s dissatisfying earnings and reports of unrevealed loans to associated entities loses the company the interest of analysts and investors. David Mudd, director at the Pacific Group, is concerned about the company's declining margins for operating profit and growing startup losses new products. However, Mudd added that one of the most noticeable apprehension in the company is that nearly one-third of net profit was raised from investment grants from provincial Chinese government agencies. Mudd's worries were proved true when Tingyi posted final results for 1997, net profit dropped 46% to $42.8 million, despite sales growth of 26% to $602.9 million.
Comment:
Dissatisfying earnings and reports of unrevealed loans to associated entities loses the company analyst and investor interest
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Comment about this article or add new information about this topic:
Noodle maker gone limp?
Article Abstract:
Stock prices of instant noodle manufacturer Tingyi (Cayman Island) Holdings Corp. have plunged by 27% to $0.8 after announcements of decreased profits in May 1998 and a loss of investor confidence. Analysts' fears of declining profits were confirmed after the firm disclosed its profits for the 1997 fiscal year. Tingyi reported a reduced profit of 46% ot $42.8 million despite a 26% increase in sales of $602.9 million. The firm's investors were also disappointed over its decision not to disclose details of loans amounting to some $35 million to its parent company, Ting Hsin Holding Corp.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Comment about this article or add new information about this topic:
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