Hong Kongs Yips Chemical Holdings Ltd. posted a loss of HK $2.9 million (U.S. $374,000) for its lubricants division in 2014, down from a profit of HK $10 million in 2013.
Sales for the companys Pacoil and Hercules brands of oils dropped 7 percent in 2014 to HK $431,837,000, from HK $463,831,000.
Yips noted in an annual report last week that it would have made a profit of HK $652,000 last year if not for devaluation of the Hong Kong dollar. Management pointed to weak demand as another factor.
Yips, which manufacturers and markets Hercules branded automotive and industrial lubricants and Pacoil specialty oils, said it will adjust sales strategies and minimize expenses going forward.
The company is headquartered in Hong Kong, registered in the Cayman Islands, and has capacity to produce 32,000 metric tons of lubricants per year.