FUJIKON ANNOUNCES 2007/08 INTERIM RESULTS
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS UP 51.7% TO HK$67.5 MILLION
CORE BUSINESSES CONTINUE TO DRIVE BUSINESS GROWTH
(Hong Kong, 29 November 2007) - 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 2007.
During the period under review, the Group achieved a double-digit growth in revenue, rising by 12.2% to HK$831.7 million, principally driven by the remarkable growth from communication and audio business segments. With gross margin improved to 20.0%, the Group was able to enhance gross profit remarkably, representing an 18.2% year-on-year rise to HK$166.6 million. Thanks to effective cost control and benefits through economies of scale, profit attributable to equity holders of the Company accelerated 51.7% to HK$67.5 million, while net margin improved from 6.0% to 8.1%, translating into basic earnings per share of HK17.8 cents.
In celebration of the Group's 25th Anniversary, the Board of Directors is pleased to recommend a special dividend of HK2.0 cents on top of the interim dividend of HK3.0 cents per share for the six months ended 30 September 2007.
Mr. Johnny Yeung, Chairman of Fujikon, said, "Reaching our 25th year, we are very pleased to announce the highest ever six-month revenue and profit in the half year, buttressed by the strong roots building on our technology front and strong business relations with top-tier customers. We have also implemented effective cost control to ensure optimal benefits to our shareholders, and we will continue to strive to maintain our leadership in the electro-acoustic industry."
Below is the summary of product mix analysis:
Driven by sustained strong demand for communication headsets by a leading European mobile phones manufacturer, the communication products segment remained the largest revenue contributor for the Group. Sales recorded a 15.1% year-on-year growth to HK$285.8 million. Fujikon also further enhanced its relations with this leading client via joint efforts in research and development of new products.
Audio product segment achieved the highest increase in sales among all during the period, generating sales of HK$203.7 million, up 39.9%. The remarkable increase reflected the six months worth of income from a premium US audio brand, whereas initial shipment of products for this client was just made in September 2006 during the last corresponding period. In addition, the introduction of enhanced products featuring higher functionality enabled the Group to command higher prices thus greater earnings.
During the period, Xbox 360TM gaming headsets experienced a transition period and the introduction of a new version of the headset was also delayed, leading to a set back in the multimedia product segment. Subsequently, sales declined by 21.8% to HK$77.3 million in the segment.
Consistent with its focus on major businesses, the Group's strategic withdrawal from the electro-acoustic parts segment resulted in a decline in its sales of 37.5% year-on-year to HK$27.7 million. As FM transmitters are becoming a standard feature on vehicles, clients in this area have been directed to Fujikon's other strengths. An essential supporting business to the Group's core buinesses, the electronic products, accessories and others segment registered a 16.2% growth to HK$237.3 million. The impetus behind such growth can largely be traced to the Group's overall positive performance for which the sector runs in parallel.
Moving forward, the Group is optimistic about its core segments under the encouraging market sentiments. For example, according to Gartner, global sales of mobile phones are on course to reach 1.13 billion units by the end of 2007, which explains Fujikon's confidence in the growth potential of the mobile communication products segment. Moreover, the Group's ongoing and strong business ties with prominent customers enable it to complement customers' product launch with upscale accessories.
Having established fruitful relations with a high-end audio brand and directing energies into the research of audio products, the Group's enriched product range matches the general public's growing fondness for superior headphones. Likewise, buoyant sentiment can be perceived for wireless headphones, namely those possessing infrared (IR), radio frequency (RF), and Bluetooth technologies. Accordingly, the Group will remain sensitive to consumers' interests, addressing such demands with products capable of bolstering sales in the business segment.
Mr. Yeung concludes, "We have always persisted in delivering quality products complementing product launch and delivery needs of customers and catering to different needs of consumers. Drawing motivation from the peaks and troughs experienced over the years, we are determined to realize sustained growth as our ultimate goal, securing better returns for shareholders."
-Ends-
12.2%
37.5%