For Immediate Release
November 2, 1999
CEC International Holdings Limited ("CEC") (759) announces today the placing of 37 million shares to professional and institutional investors, and the new issue of 13 million shares for public subscription, at an issue price of HK$1.10 per share for public subscription between November 3 and 8, 1999.
The net proceeds raised from the placing and new issue are estimated at approximately HK$45 million. Approximately HK$42 million of the funds will be used for the installation of fully automated production lines in Singapore and Zhongshan, Guangdong Province, the PRC; setting up of production facilities for the manufacture of motor coils to futher expand product range, establishment of research and development center in Japan, further implementation of vertical integration by setting up production lines for the manufacturing of ceramic saggers. The balance of approximately HK$3 million will be used as the Group's additional working capital.
The placing and new issue is sponsored and managed by Dao Heng Securities Ltd. Co-sponsors are Celestial Capital Limited and New Japan Securities International (H.K.) Ltd. Underwriters include Dao Heng Securities Limited, Celestial Securities Limited, New Japan Securities International (H.K.) Ltd, TIS Taiwan International Securities (HK) Limited and Yicko Securities Limited.
Mr Lam Wai Chun, Chairman & Managing Director of CEC said, "CEC's coils are widely used in most of electronic and telecommunications products, home electric appliances, audio-visual products, office automation machines, measuring equipment and other consumer products. CEC's continuous effort throughout the past 20 years has been proven that CEC is truly and electronics components manufacturer rather than an electronic components assembler." The Group has adopted vertical integration strategy since 1992 and therefore substantially improved the cost effectiveness and gross profit margin.
CEC's production facilities are located at Dongfeng, the Municipality of Zhongshan Province, Xiamen of Fujian Province and Singapore. "The Group is also planning to establish a research and development center in Japan in order to keep pace with the latest technology so as to meet our customers need." Mr Lam continued.
CEC International Holdings limited is principally engaged in the design, development, manufacture and sales of a wide range of coils. In the year ended April 30, 1999, the Group registered a turnover of HK$193.9 million and a net profit of HK$23.6 million.
Three-Year Track Record and the first three months of the current year
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