Tongda Group Holdings Limited Announces 2004 Interim Results
Hong Kong (ots/PRNewswire)
Tongda Group Holdings Ltd (HKEx: 698)
("Tongda"), a leading component and accessory manufacturing group
that designs, manufactures and distributes In Mould Decoration
("IMD") products for electrical home appliances manufacturers and for
handsets manufacturers, announced its interim results for the six
months ended 30th June 2004.Highlights
-- Turnover was HK$393,956,000, representing 2.2 times of the same period
of last year
-- Profit from operating activities was HK$68,402,000, representing 2.6
times of the same period of last year
-- Profit attributable to shareholders was HK$58,720,000, representing
2.6 times of the same period of last year
-- Basic earnings per share for the first six month was HK$0.0182,
compared to HK$0.0075 in the same period of last year, representing an
increase of approximately 143%
-- Interim dividend for the first six months declared to be HK$0.007,
compared to HK$0.002 in the same period of last year, representing an
increase of approximately 250%"The prosperous growth of the manufacturing market in China remains offering a golden opportunity for the Company to grow. The Company reaffirms its commitment to deliver a comprehensive range of high quality accessories supplies to the prestige manufacturers in the Great China Region or the "World Factory". Whilst the rewards from the previous years investment will follow in future and the continuous support from the prestige customers, the Company starts getting high return and we are full of confidence to maintain consistent growth in the coming years" the Company's Chairman, Mr Wang Ya Nan said.
Company background
Tongda is a manufacturing group having established for more than
20 years, that designs, manufactures and distributes In Mould
Decoration ("IMD") products and also, designs and manufactures
aluminum alloy components and ironware parts for electrical equipment
manufacturers and fiber optic cable for China Telecom.Tongda currently maintains three manufacturing sites, in Shishi and Xiamen, Fujian Province and in Shenzhen, employing approximately 3,900 individuals, and operating over 80 production lines. The Company listed on the Hong Kong Stock Exchange (listing code 0698) in December 2000. The Company is majority owned by its founder, Wang Brothers (52.7%), with substantial strategic institution investors, Allianz Aktiengesellschaft (5.96%) and Morgan Stanley (5.95%).
Originally founded as an electrical equipment components manufacturer, in April 2002, the company launched operations to manufacture IMD products, particularly for mobile phone handsets. Due to the company's strong and long-term relationship with prominent customers, Tongda grew to supply 30 out of the 37 approved handset manufacturers in China, including DBTel, Haier, TCL, Amoi, Bird, Sendo and UTStarcom. In 2004, IMD handset sales represent the company's fastest growing revenue stream and the Company manufactured over 16 million pieces of IMD which is 1.3 times to 2003's whole year's production.
Tongda's competitive strengths include:
Strong customer base which is the most important intangible asset of the Group. The top 20 customers include Amoisonic, Bird, Changhong, China Mobile, China Telecom, Electrolux, Gree, Haier, Hisence, Meiling, Samsung, Sony, TCL, TPV, Utstarcom, Vtech, which have accounted for over two-third of the Group's total turnover for the period.
High Quality and High Margin: Tongda utilizes comparable, capital intensive IMD technology as its foreign counterparts and relatively low labour cost in China, which allows Tongda to consistently produce high quality and high margin products.
Efficient Production Team: Tongda designs, develops and completes new handset prototypes for IMD within a very short period of time say, 10 days, and with final product delivery within two weeks.
Web site: http://www.tongda.com
Contact:
Mr Kelvin Ko, Chief Financial Officer of Tongda Group Holdings Ltd,
+852-2872-2603/+852-2570-8128, or fax, +852-2510-0991,
kelvin@tongda.com.hk