For more information
Tonic Industries Holdings Limited
Michelle Ying, Communications Officer
Tel.: 2364 6228 Fax: 2303 0471
(Hong Kong, August 5, 1998) Mr. Ling Siu Man, Simon, Chairman of Tonic Industries Holdings Limited said, "despite the instability of the Asian financial markets and the downturn of the economic situation in Hong Kong, the Group has been able to achieve a record high result for the year. Turnover and profit attributable to shareholders for the year ended 31 March, 1998 amounted to HK$ 1,524 million and HK$ 41.5 million respectively, both representing an increase of approximately 76% as compared to the year ended 31 March, 1997. Dividend of HK$0.03 per share will be paid and earnings per share is HK$0.167. The Directors also recommend a payment of 2 bonus shares and 1 warrant for every 5 shares held."
The Group's success are attributable to its ability in continuously diversifying customers portfolio, improving products quality and providing professional sales services. Among severe competitions in the audio manufacturing business, the Group has successfully expanded market share during the year. Demand of products from countries in America and Europe were strong and they contributed to about 80% of the Group's turnover.
We have seen the turmoil in the Asian countries to have a minimal effect on the business of the Group. Instead we note that as a result of the instability of these Asian countries, buyers from Europe and Americas have shifted their purchase orders to Hong Kong which factories can provide timely delivery and product quality. On the other hand, these Asian factories are commonly tight in working capital and short of bank credit. With the devaluation of the currency of these Asian countries, they may suffer from a higher production cost because the major components of the audio products are mainly imported overseas.
Looking ahead, the Group will continue to expand its production capacity and to secure a larger market share. This will be done, however, in a cautious and steady manner together with constant review of the changing market situation. The Group will further strengthen its vertical manufacturing process by looking into opportunity of producing more components in-house in order to improve the profit margin and product quality. Finally, the Group will continue to develop on its already widely diversified customers portfolio and to research on new audio products in order to sustain a healthy growth in its business.
Tonic Industries Holdings Limited is principally engaged in the design, manufacture and marketing a wide range of customer audio-visual products including CD portables, Dolby Prologic stereo receivers, portable CD/cassette/radio systems, portable cassette recorders and mini-Hi-Fis. All the products of the Group are sold on an ODM and OEM basis to companies including well-known brandnames such as Alba, Bust, Emerson, GPX, Kenwood RCA, Thomson and Sanyo.
| The full text of this release and the Company's formal announcement of final results can be accessed through the Internet at: http://www.irasia.com/listco/hk/tonic |
| © Copyright 1996-2023 irasia.com Ltd. All rights reserved. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |