FUJIKON ANNOUNCES 2006/07 INTERIM RESULTS
NET PROFIT SURGES OVER 50% TO HK$44.5 MILLION
COMMUNICATON AND MULTIMEDIA SEGMENTS
REGISTER REMARKABLE GROWTH
(Hong Kong, 23 November 2006) - Leading Hong Kong electro-acoustic products designer and manufacturer Fujikon Industrial Holdings Ltd. ("Fujikon" or the "Group")(Stock code: 0927) today announced its interim results for the six months ended 30 September 2006.
During the period under review, driven by the booming communication and multimedia businesses as well as the increased sales orders from first-tier customers, the Group achieved a record high half-yearly turnover of HK$741.1 million, up 53.8%, while gross profit rose 33.3% to HK$141.0 million year on year. Net profit increased 50.8% to HK$44.5 million, translating into basic earning per share of HK$11.8 cents.
The Board of Directors is pleased to recommend the payment of an interim dividend of HK3.0 cents per share for the six months ended 30 September 2006.
Mr. Johnny Yeung, Chairman of Fujikon, said, "We are pleased to announce that riding on the tremendous growth momentum built up last year, Fujikon achieved the highest ever six-month turnover and profits in this review period. Our turnover and net profit both jumped more than 50%. With rising orders from world-class customers, communication and multimedia segments performed exceptionally well. The close business relationships with these top-tier customers not just contributed directly to our revenue, but also strengthened our leadership in the electro-acoustic industry."
Below is the summary of product mix analysis:
Strong demand for hands-free headsets bundled with mobile phones with music and video features facilitated the outstanding performance of the communication segment, whereas the strengthened ties with a leading European mobile phone manufacturer accelerated its growth. As the sole supplier of wired headset for Microsoft Xbox 360™, the Group enjoyed a 323.3% growth in its multimedia segment driven by the sales of the game console in the market.
Audio products continued to be an important source of revenue for the Group which has made initial shipments of new products to a premium audio brand since September 2006. As an essential supporting business to the Group's core businesses, the electronic products and accessories business registered strong growth during the period. For the electro-acoustic parts, the Group achieved positive sales of its FM transmitter. However, as the Group has been strategically withdrawing from the production of micro-speakers for mobile phones, decline in this segment was expected.
Looking ahead, thriving demand for high quality electro-acoustic products in the fast-growing communication and multimedia markets provide the Group with abundant room for business growth. The strong global mobile phone market, for example, is on course to achieve Gartner's global sale forecast of 960 million mobile phones for 2006. This is especially beneficial to the Group receiving growing orders from a leading mobile phone manufacturer.
With the tide of video games becoming a part of modern lifestyle, steady performance from the business of bundling headsets with Microsoft's Xbox 360™ game consoles is expected. With increasing popularity, instant messaging including Voice over Internet Protocol (VoIP) and other cross-segment multimedia applications becomes another arena in the multimedia segment providing further business opportunities for the Group.
Audio segment is expected to be another growth driver in the second half of the year. After the initial shipments to a premium audio brand in September 2006, significant orders have been scheduled for shipment in the following months. Another promising area for the Group is its noise canceling headphones which have been gaining market acceptance by frequent air travelers. With a wider degree of market acceptance of advanced technologies, wireless headphones that adopt infrared (IR), radio frequency (RF), Bluetooth and 2.4/5.8GHz digital audio technologies have also seen increasing orders.
Mr. Yeung concluded, "Although we expect pressure from continuing macro-economic challenges in the later half year, we will strive to maintain our margin by exercising vigilant cost control, and improving productivity and operational efficiency. Having been in the industry for over two decades, Fujikon has become synonymous with acoustics excellence. Nevertheless, we are never complacent and will continue to seize opportunities arising from new product trends borne out of consumers' desire for innovation, with the goal to achieve long-term managed growth."
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