Ms Helen Wong King-ching, Chairman, Sunway International remarked: "We have made conscious and successful effort in sustaining our leadership in our core sectors including electronic calculators, quartz crystals and liquid crystal displays (LCD). Sunway, being one of the largest producers of electronic calculators in China and Hong Kong, has continued to maintain its position through active product and brand development."

During the period, Sunway has developed and introduced new products with distinctive designs such as cyber-look calculators. The Group has also continued its ongoing quality enhancement initiative with a view to further advancing its product portfolio. Last year, the Group introduced two new brands "Kenko" and "Gavao" to the market to complete the coverage of its existing "Sunway" line. The establishment of a new dedicated representative office in Shenzhen, China for "Kenko" line of products has helped advance the Group's sales and distribution network in China and overseas. With intensive marketing input, the Group has successfully built "Kenko" into a highly visible brand particularly in such markets as India and Pakistan in Asia, Egypt and Morocco in Africa and New York in USA.

Sales of quartz crystals and LCD contributed 12.6% of the Group's total turnover in the last six months. Sunway is currently one of the largest manufacturers of quartz crystals and LCD in China. Sales in these sectors declined in the period, but management anticipates improvements in performance in the coming periods after completion and full installation of production facilities in the new premises. The new manufacturing facilities, when fully operational, will help spearhead the Group's further development in LCD and quartz crystals, with a view to realizing its mission of becoming the largest supplier in this sector in China.

"Administrative and financial control is equally important to maintaining our resilience in an adverse market. With conscious management efforts, we have been successful in lowering administrative expenses by 17.6%. The Company's convertible bonds issued in 2000 have been fully converted or redeemed. As a result, finance costs also declined significantly by 61.3% to HK$3,896,000," said Ms Wong.

Accounts receivable position has been improved as a result of efforts in monitoring and improving debt collection. In particular, the outstanding accounts receivable aged from seven to twelve months and due over one year has been lowered by 42.2% and 6.7% respectively over that as of 30 September 2002. Based on a careful review of debtors' repayment ability and subsequent settlement of total outstanding accounts receivable, the accumulated provision for doubtful debts of HK$32,512,000 was considered adequate and not excessive.

The Group continues to maintain a strong financial position. As at March 31, 2003, total shareholders' equity was approximately HK$864,584,000, an increase of about 0.4% over that at September 30, 2002. Cash and bank balances and deposits as at March 31, 2003 stood at HK$126,644,000. The Group's gearing ratio was lowered from 29.3% at September 30, 2002 to 27.8% at March 31, 2003.

About Sunway International Holdings
Sunway International Holdings Limited (SEHK: 58/SES: S34) is a leading China-based manufacturer of consumer electronic products and components with a wide stretch of businesses from calculators, quartz crystals, liquid crystal displays (LCD), integrated circuits to electronic watch movements. It is one the world's largest manufacturers of calculators and also participates in the thriving telecoms equipment manufacturing sector through a 40% interest in a joint venture with Taiwan Telecommunication Investment Co. Ltd. The Group's manufacturing facilities are based in Fujian, China with a workforce of 15,000 under the Group.

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