Comprehensive net income jumped 33% to HK$64,827,000 ($8.4 million) from HK$48,578,000 on flat sales of HK$870,291,000 ($112.2 million) vs. HK$870,998,000 in 2016. Higher profitability was driven by gross margin expansion of 270 basis points to 33.1% from increasing efficiencies at the Bangladesh factory, which also added 25% to its capacity in the last year. A second, 350,000-sq.-ft., factory in Bangladesh is under construction and will begin producing in 2018. Production skills of the workers there are improving, enabling them to handle more high-end headwear orders. The Shenzhen factory is now mainly focused on R&D and design of high-end products.

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