To strengthen partnership with its core customers, the Group will continue to follow a two-pronged strategy of designing attractive quality handset casings while developing ultra slim and functional components, providing products at reasonable prices with reliable quality. The Group has introduced the laser direct structuring ("LDS") technology last year, to design a new generation of antenna systems, enabling it to become the only supplier providing a vertically integrated supply chain of these systems in China. Small scale production is expected to begin in the second half of this year with mass production beginning next year.
Greater domestic demand has spurred a rebound in the sales of the Group's electrical appliances of 6.3% to HK$309,100,000million from the same period of last year. The Group has maintained its solid partnership with leading domestic appliances brands including Midea, Haier and Gree forged over the years. The Group's IML large plastic appliance casings for high-end electrical appliances accessories are in line with the increasing demand for upmarket electrical appliances, enabling it to maintain a market-leading position in the industry. During the year, the Group has successfully applied the IML one-piece shaping process and technology to floor-standing air conditioners and become the sole domestic supplier of casings of such products.
Global shipment of notebooks declined in the first half of the year, consequently sales income for the period dropped 9.5% to HK$223,700,000. However, the Group is actively developing the tablet market and maintains close partnerships with world-renowned computer brands, such as Lenovo, Toshiba, Sony, NEC and Taiwan's top four computer manufacturers, namely Quanta, Compal, Asus and Acer, most of which are Chinese and Japanese customers, so the adverse industry environment only minimally affected the Group. Currently, the Group is developing high quality metal and ultra-thin computer casings. The newly developed Laminated Metal Film ("LMF") casing effectively maintains the hardness of metals while preserving the attractiveness of IML technology decoration, thus it has been widely accepted by a number of brands during the period.
Ironware parts and communication divisions
Benefited from the increasing trend of using metallic parts and casings on appliance casings, sales of the ironware parts division increased by 63.8% to HK$224,300,000million.Communication facilities division focuses on the production of digital satellite TV receivers and set top boxes and its major customers are from the Middle-East, Europe and the United States. Sales maintained stable atHK$109,500,000million during the period under review.
The Group is committed to developing the consumer electronics products market with a goal of maintaining high gross profit margins and providing a one-stop solution for casings and components through utilising state-of-the-art and diversified technologies. As the only supplier providing a vertically integrated supply chain of LDS in China, the Group offers a one-stop service from antenna design to production and installation. The technology can be widely applied to smartphones, notebook computers and tablets. At the same time, the Group plans to set up a new handset production base in Xiamen to satisfy the strong customer demand for precision handset casings of the Group.
Mr.Wang concluded, "Looking ahead, we will continue to increase our investment in the handsets business while at the same time focus on the notebook computers and electrical appliances businesses. To complement these efforts, we will devote greater resources to the research and application in new technology, materials and processes, so as to provide superior high-end casing and precision structural components. By leveraging our one-stop competitive edge, we will further broaden our customer base, and hence increase the utilisation rate of our production facilities and enhance profitability, so as to respond to the rapidly-changing and challenging markets. The rollout of 4G networks will spark the next smartphone craze. The LDS antenna business is set to provide an unrivalled competitive advantage for the Group to maximise this opportunity. We will continue to uphold the principle of prudent financial management, carefully analyze the market and actively strengthen operational capabilities to promote sustainable development."
About Tongda Group Holdings Limited
Tongda Group is one of the world's leading suppliers of high-precision components of consumer electronic products. Leveraging its leading in-mould lamination ("IML") technology and first-tier customers in the robust consumer market in the PRC, the Group has established a solid presence in handset, electrical appliance and notebook computer casings and related products. In 2013, the Group is going to expand into the Internal LDS("Laser Direct Structuring") Antennas business to tap the fast-growing smartphones, notebook computers and tablet computers market.
Source: Tongda Group Holdings Limited
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