HONG KONG -- Kingboard Chemical Holdings reported revenue rose 8% year-over-year to HK$36.6 billion ($4.71 billion). Net profits fell 26% to HK$2.6 billion.

Excluding one-time charges, profits fell 26% to HK$2.58 billion. EBITDA was down 17% year-over-year to HK$6.1 billion.

Laminates sales decreased 9% against 2010 to HK$13.8 billion ($1.78 billion). The unit's EBITDA fell 26% to HK$2.51 billion. Average monthly shipments reached 8.5 million sq. m. Chinese sales increased 13% compared to 2010. A net increase in the average selling price of laminates was offset by higher raw material and other operating costs and lower capacity utilization in the fourth quarter.

Laminate orders have been improving since the Chinese Lunar New Year, Kingboard said, and  prices are rising as well. Shipment volume and laminates production utilization improved in February, and the company plans to expand laminates production capacity in Jiangyin and Jiangmen plant this year.

PCB sales fell 7% to HK$8.1 billion and EBITDA plunged 35% to HK$1.06 billion on higher rising costs, softer demand and aggressive inventory adjustment in the fourth quarter. HDI PCB sales increased 30% over 2010, however, accounting for 17% of total PCB sales. A new PCB facility in Yangzhou, Jiangsu province, is expected to begin trial production in the second quarter, and annual capacity is expected to reach 6 million sq. ft. by the end of this year. Dedicated HDI PCB plants in Kunshan and Kaiping also plan to expand production capacity in 2012 to meet customer demand.

Chemical division sales jumped 18% to HK$17.1 billion and EBITDA rose 6% to HK$2.12 billion.

Group chairman Paul Cheung Kwok Wing said, "Despite strong headwinds in the second half, [we] delivered profitable results from all core business segments. Driven by buoyant domestic demand for chemical products in China, our chemical division also delivered impressive growth in both turnover and profit."

Kingboard Group includes Kingboard Laminates Holdings, Elec & Eltek, and Kingboard Copper Foil Holdings.

Ed: 1 HKD = 0.128764 USD

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