HONG KONG, Jan. 25 /Xinhua-PRNewswire/ -- Leading electronic consumer products and components producer Sunway International Holdings Limited (SEHK: 58; SES: Sunway) today announces its annual results for the year ended 30 September 2006. Turnover of the Group for the year ended 30 September 2006 was HK$1,027,607,000 representing 7.5% increase compared with last year. Profit before tax for the year was HK$19,053,000. The Group's gross profit for the year was 81,548,000 with gross profit margin of 7.9% compared with the previous 10.5%. The decrease in gross profit was due to price competition and the increase in cost of raw materials as a result of high oil price. The proportion of trading business, which has a lower profit margin, rose during the year also caused the drop in our gross profit margin. Net profit for the year was HK$14,477,000, representing a decrease of 46.6% from HK$27,109,000 a year ago. Basic earnings per share for the Year were 1.4 cents. The Group declared a final dividend of HK1.0 cent.
Turnover of liquid crystal displays ("LCD") recorded a significant growth of 88.1% to HK$232,830,000 compared with HK$123,754,000 in previous year. Sales of electronic calculators was HK$447,758,000, down 12.4% from last year's. It represented 43.6% of the Group's turnover and was the largest business segment of the Group. Revenue from electronic watches and clocks was HK$118,853,000, slightly decreased by 6.9% from last year.
Turnover of telephone products amounted to HK$93,293,000, rose 121.5% compared with last year. During the year, the launching of new models of multifunctional corded and cordless telephone got favourable response and demand from the market. Business from this section was still under expansion.
The sales of LCD are expected to continue to boost. The Group is successful in capturing this growing demand LCD market. The sales of LCD products are supported by our sophisticated LCD production plant in Fujian, Mainland China. We will continue to streamline our STD-LCD production lines and upgrade our products to cope with the increasing demand in LCD products. The Chip-On Glass (COG) LCD production technology has been developed to a mature stage. The Group will continue to produce high quality products to meet the customers' needs and enhance our competitiveness in the market.
The new production plant in Henan, Mainland China has started its operation during the year for the production of consumer electronic products. The Group intends to continue to expand its production capacity in Mainland China in order to support its business growth in the future.
Under the pressure of high material costs which is due to persistent high oil price, the Group will continue to reduce our production and operating costs through streamlining the production process, improving operational efficiency and tightening cost control measures.
Ms Wong King Ching, Helen, Chairman of Sunway, remarked: "With high quality and diversification of products, strong sales and distribution network and effective cost control policies, we expected that we could improve our competitive edge and sustain business growth and development in the coming year."
Financial Highlights
Year ended September 30
2006 2005
HK$'000 HK$'000
Turnover 1,027,607 956,134
Profit before Tax 19,053 33,991
Net Profit Attributable to Shareholders 14,477 27,109
Earnings per Share - Basic HK1.4 cents HK2.7 cents
Final (full-year) dividend per share HK1.0 cent HK1.0 cent
About Sunway International Holdings Limited
Sunway International Holdings Limited (SEHK: 58; SES: Sunway) is a leading China-based manufacturer of consumer electronic products and components with a wide stretch of businesses from calculators, quartz crystals, liquid crystal displays (LCD), and integrated circuits to electronic watch movements. It is one the region's largest manufacturers of calculators, quartz crystals and LCD. It participates in the thriving telecom equipment-manufacturing sector through a 40% interest in a joint venture with Taiwan Telecommunication Investment Co. Ltd. The Group's manufacturing facilities are based in Fujian, China with a workforce of approximately 20,000.
Media Contact:
Raymond Leung
Tel: +852-2413-6812
Email: raymond@sunwayhk.com
