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CEC International Holdings Limited

[FOR IMMEDIATE RELEASE]

CEC ANNOUNCES 2001/2002 INTERIM RESULTS

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MANGANESE-ZINC FERRITE CORE PRODUCTS
STRONGLY WELCOMED BY MARKET

(Hong Kong, December 17, 2001)-- Leading electronic components manufacturer CEC International Holdings Limited ("CEC" or the "Group") (Stock Code: 759) today announced its interim results for the six months ended October 31, 2001. CEC recorded a turnover of approximately HK$184,253,000, a slight decrease of 1.8% as compared to the same period last year. Profit attributable to shareholders amounted to approximately HK$10,477,000, compared to HK$27,511,000 during the same period in the previous year.

Basic earnings per share were HK 1.64 cents. The board of directors does not recommend the payment of any interim dividend.

Mr. Coils Lam, the Chairman of CEC said, "There have been tremendous and unexpected changes in 2001/2002. Global economies were pushed to new lows with the terrorist attack of September 11 in the US, worsening the already adverse market conditions. In spite of these unfavorable conditions, we still remained competitive in the market, maintaining our gross profit margin at a level of approximately 29.4%. Turnover for the second quarter grew 31.0% and 7.7% against the previous quarter and the same period last year respectively."

Mr. Lam continued, "To sharpen our competitive edge, we grasped opportunities to further expand and automate our production facilities at a relatively low cost in view of the economic downturn, paving the way for further development."

With the Group's installation of automated and sophisticated production facilities last year, the production line of manganese-zinc ferrite core products commenced operation during the period under review. Production capacity has been substantially enhanced with the new facilities. As the quality of manganese-zinc ferrite core products manufactured with the newly installed advanced facilities are more promising, they have been strongly welcomed by manufacturers of hi-tech products. With the revolutionary changes in modern technologies, electronics manufacturers are more seeking quality yet economic electronic components. Therefore, the demand for the series of manganese-zinc ferrite core products is expected to step up substantially when the market rebounds. Additionally, with the production capacity of Zhongshan plant greatly enhanced after the completion of the expansion project, the series of manganese-zinc ferrite core products are expected to bring in very reasonable returns to the Group. Most importantly, the move consolidates the Group's foundations and enhanced sphere for the Group's long-term development.

Strategic partners have also been playing a crucial role in the Group's development. During the period under review, Nittoku Engineering Co. Ltd. once again demonstrated its support for the Group, taking action by enlarging its shareholdings in the Group from 4.8% to 7.7%. The subscription of new shares was completed on October 9, 2001. The proceeds of HK$13,832,000 have been used as general working capital for the Group.

Looking ahead, China's accession to WTO will bring positive benefits to the world's markets. Recently, the Group entered into an agreement with one of the world's leading mobile phone manufacturers based in Europe, supplying it with high-power major electronic components for its chargers on a long-term basis. This agreement is expected to bring reasonable returns to the Group despite the current difficult economic environment.

Mr. Lam concluded, "We expect the market will remain depressed at least for the next half year. Together with the traditional slack season for the electronics industry, it is expected to have certain impacts on the Group's performance. Nevertheless, with shareholder and customer interest as our major driving focus, we will pay extra attention to cost control and staff quality, while also broadening the product portfolio and expanding our markets. We will be making every effort to raise our competitiveness and consolidate our position in the market."

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About CEC International:

CEC International was listed on The Stock Exchange of Hong Kong Limited on November 15, 1999. It is a reputable electronic components manufacturer, engaged in the design, development, manufacture and sale of a wide range of coils, capacitors, power supply devices and other electronic components. CEC's electronic components can be commonly found in IT products, telecommunication products, home appliances and audio-visual products, etc. Accredited with ISO 9001 certification in 1995, the Company also has more than 400 engineers and quality control staff for the assurance of product quality.

For press enquiries:
Strategic Financial Relations Limited
Iris Lee / Carol Lau/ Doris Law
Tel:2864 4831/ 2864 4815/ 2864 4836
Fax:2804 2789/ 2527 1196
Email:iris@strategic.com.hk / carol@strategic.com.hk / doris@strategic.com.hk

Remarks:

This media release and the other corporate information of CEC International Holdings Limited can also be accessed at the following website:

http://www.0759.com


Source: CEC International Holdings Limited
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