Q1 2007 Sales up 33%, Net Profit down 63%
HONG KONG, April 30 /Xinhua-PRNewswire/ -- J.I.C. Technology Company Limited ("J.I.C." or the "Company") (Stock code: 987), a Hong Kong's leading manufacturer of liquid crystal display ("LCD") panels and modules, today announced the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the first quarter of 2007 ended 31 March 2007.
Sales of the Group in the first quarter of 2007 reached about HK$131.4 million, a 33% increase as compared with the same quarter last year. Most of the increase in sales came from new products and businesses that were launched in 2006 and early this year.
Gross profit in the first quarter of 2007 however dropped about 23% to about HK$13.0 million as compared with the same quarter last year and gross profit as a percentage of sales eased about 7% over the same quarter last year to about 10%. Net profit in the first quarter of 2007 amounted to about HK$2.3 million, as compared to a net profit of about HK$6.2 million in the first quarter last year.
Although sales improved, competition intensified and overheads also increased. It is expected that with the arrival of new machines in the second quarter to resolve bottleneck areas and a progression on the learning curve, production yield will rise and consequently an improvement is expected in gross profit and gross profit margin.
The Group will pursue its strategy to gain more market share in new products and customers. Efforts will continue to be made to penetrate markets in Europe and the Asia-Pacific region. Capital expenditure has already been committed and new machines are expected to arrive soon to support production of new products and to ease production bottleneck areas. Negotiations have also been made with suppliers on cost down proposals. The Company expects that its results will improve in the second quarter of 2007.
About J.I.C
J.I.C. specializes in the design, manufacture and marketing of LCD panels and modules. Its products are widely applied to different kinds of portable electronic devices, such as watches, calculators, personal digital assistants, mobile phones, car audio devices and instruments. J.I.C. has already built up a strong customer base producing for globally well-known electronic brands, including Nanox, Stanley, Uniden, Vtech, Casio Computer and Polar. In addition, J.I.C.'s LCD production base is located in Shenzhen, PRC. Its LCD panels' production capacity is in the leading league among other counterparts.
J.I.C. is one of the subsidiaries of Nam Tai Electronics, Inc. ("NTE") (New York Stock Exchange symbol: NTE). NTE is an electronics design and manufacturing services provider to many of the world's leading original equipment manufacturers, including Epson, Canon, Optrex, Seiko Instruments, Sharp, Sony Corporation, Sony Ericsson, Texas Instruments, Toshiba and others. It manufactures high-quality telecommunications products, palm-sized PCs, personal digital assistants, linguistic products, calculators and components such as LCD modules, wireless communication terminals and their modules, and CMOS sensor modules.
For more information about J.I.C., please visit its website at
www.jic-group.com . For more information about NTE, please visit its website at www.namtai.com .
J.I.C. Technology Company Limited
2007 Q1's Results Key Highlights
(In thousands of HK Dollars, except as otherwise stated)
Quarterly Results
Q1 2007 Q1 2006 YoY(%)
Sales (Revenue) 131,397 99,022 32.7
Gross Profit 12,997 16,771 (22.5)
% of sales 9.9% 16.9% --
(Loss) Profit from (1,962) 7,209 (127.2)
Operations(a)
% of sales (1.5)% 7.3% --
Per share (HK cent) (0.26) 0.94 (127.2)
Net Profit(b) 2,300 6,217 (63.0)
% of sales 1.8% 6.3% --
Basic earnings per share (HK cent) 0.30 0.81 (63.0)
Diluted earnings per share (HK cent) 0.30 0.81 (63.0)
Weighted average number of
shares ('000)
Basic 763,535 763,535 -- Diluted 763,535 763,535 --
Notes:
(a)(Loss) Profit from Operations excludes Bank interest income, Interest
on bank borrowings and Taxation.
(b) The net profit for the three months ended 31 March 2007 is caused by
a deferred tax income amounting to approximately HKD5,022,000 which
arose as a result of the expected changes in the PRC income tax law
effective from year 2008 and beyond.
For more information, please contact:
Kee Wong
Tel: +852- 2263-1065
Fax: +852-2263-1223
Email: lkwong@namtai.com.hk
