t6pr.com - Sunway International (58)

Hong Kong, June 25, 2002 - China's leading electronic consumer products and components manufacturer Sunway International Holdings Limited (SEHK: 58/SES: SIHL) today announces a consolidated turnover of HK$348,012,000 and profits before tax of HK$18,337,000 for the six months ended March 31, 2002, with the gross profit ratio standing at approximately 15%. Basic earnings per share for the period were HK1.54 cents. Compared with a full-year net profit of HK$5,500,000 and gross profit of 13% in the last financial year, the Group's interim performance represents a significant turnaround. The Group did not recommend the payment of an interim dividend.

Compared with the first half of fiscal 2001, pre-tax profits declined due to the decrease in sales and the share of loss of an associated company for the period. Finance costs also rose by approximately 56% to HK$10,059,000, mainly attributed to the interest paid for the convertible bonds redeemed during the period.

Ms Helen Wong King-ching, Chairman of Sunway International, said: "Despite the price pressure across the electronics industry, the Group has tried to retain its market position and share in electronic calculators, and watches and clocks, driving their sales to surge by 21% and 18%, respectively. Growth in sales was particularly noticeable in the line of Euro-conversion calculators and such new products as scientific and double-line display calculators for secondary schools."

The Group is currently one of the largest manufacturers of quartz crystals and liquid crystal displays ("LCD") in China. The Group's sales in this sector declined in the period, but management anticipates improvements in performance in the coming periods following the completion of factory plants and installation of production facilities, which will jumpstart the Group to the largest supplier of LCD products and quartz crystals in China.

"We foresee continued improvements in performance in the second half of the year. The establishment of a representative office in Shenzhen in January 2002 will further strengthen our sales and distribution network in China. We will also continue our efforts in the development of overseas markets in Japan, USA, South America and Europe," continued Ms Wong.

In addition to developing its core business lines, Sunway International also anticipates favourable market response to its new line of high-frequency quartz crystals due to its wide application in different kinds of telecommunications devices. Taiwan is presently the major market for this type of products. The Group hopes to enhance profitability by maximising such production capacity in line with future market demand.

Ms Wong concluded: "We are delighted to report a rebound in our performance from the second half of last year. With our continuous capital investments in our LCD production capacity, as well as active market development efforts in China and overseas markets, we have every reason to maintain our confidence in the Group's forthcoming results."

About Sunway International
Sunway International Holdings Limited (SEHK: 58/SES: SIHL) is a leading manufacturer of consumer electronic products and components in China. It produces a wide array of electronic calculators, PDAs, quartz crystal, LCD and electronic watch movements at its production base in Fujian, China. The Group also participates in the thriving telecoms equipment manufacturing business through a 40% interest in a joint venture with Taiwan Telecommunications Investment Co. Ltd.

Financial Highlights

	Six months ended March 31,
	2002	2001
	HK$ '000	HK$ '000
Turnover	348,012	427,053
Profit before Taxation	18,337	44,894
Net Profit Attributable to Shareholders	15,543	39,384
Earnings per Share
- Basic	HK1.54 cents	HK3.92 cents
- Diluted	N/A	HK3.91 cents

Issued by :
Sunway International Holdings Limited

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