Focuses on High Margin Products
Seizes Opportunities of Rapid Take-up of Smartphones Market
Turnover Increases by 20.9% to Approximately HK$1,690 Million
Net Profit Rises by 15.0% to Approximately HK$130 Million
Hong Kong, Aug 21, 2013 - (ACN Newswire) - Tongda Group Holdings Limited ("Tongda Group" or the "Group") (Stock Code: 698) announced its unaudited interim results for the six months ended 30 June 2013.
Despite the ongoing weakness in the global economy, the Group seized the opportunity presented by the rapid take-up of smartphones market to generate growth through close partnerships with leading domestic and international brands, hence reported growth in sales, gross profit and net profit. During the period, overall turnover increased by 20.9% year-on-year to approximately HK$1,689,700,000.Leveraging its core technology of In-Mould Lamination ("IML") to develop high margin products, it reported a rise in gross profit of15.1% to HK$355,600,000compared with HK$308,900,000for the same period last year. The overall gross profit margin remained high at 21.0%. Through automated production, stringent cost control measures, as well as optimization of resources and product mix, profit attributable to owners of the Company climbed by 15.0% to HK$130,300,000as compared with the corresponding period last year and overall net profit margin reached approximately7.7%. Basic earnings per share rose to 2.72HK cents. The Board declared payment of an interim dividend of 0.9HK cent per share.
The Group has maintained a healthy financial position. Its pledged deposit balances and cash and cash equivalents as at 30 June 2013 were approximately HK$263,500,000(31 December 2012: HK$313,900,000).
Mr Wang Ya Nan, Chairman and CEO of Tongda Group, said, "The Group has strategically diversified its businesses over the years in order to broaden income sources while balancing risks. Thus, the Group has managed to achieve a satisfactory business performance despite encountering a difficult environment created by a weak global economy, intense industry competition and rising labour costs. During the period under review, the market demand for smartphones has rapidly grown, with the Group's outstanding research and development (R&D)team and product innovation gaining wide recognition from customers, we are able to capture market share both domestically and internationally while maintaining a high gross profit margin."
The Group's electrical fittings division comprises three business segments, namely handsets, notebook computers and electrical appliances. During the period under review, total turnover of the division rose 18.2% to approximately HK$1,355,900,000(30 June2012: approximately HK$1,146,900,000).
The sales contribution of the handsets business increased from 44% to 49% driven by the fast-growing demand for smartphones. Turnover of the segment reached approximately HK$823,100,000, up 35.2%compared to the corresponding period last year. With its investment in smartphone design technology, the Group has enhanced the diversity and flexibility of its customers' products, while shortening the production lead-time, enabling it to collaborate closely with a number of leading fast-growing domestic and international handset brands, such as Huawei, ZTE, Lenovo, Coolpad, TCL and Nokia.