t6pr.com - Sunway International (58)

Hong Kong, June 24, 2004 - Leading electronic consumer products and components producer Sunway International Holdings Limited (SEHK: 58/SES: Sunway) today announces an 18.0% increase in turnover to HK$361,210,000 in the six months to March 31, 2004. Profit before tax and net profit gained 22.2% and 16.0% respectively to HK$18,788,000 and HK$15,930,000. Gross profit margin declined from 13.1% of the corresponding previous period to 11.7%, mainly caused by increasing raw material costs affected by rising oil prices. Basic earnings per share rose 16.3% to HK1.57 cents. The Group did not declare an interim dividend.

Ms Helen Wong King-ching, Chairman, Sunway International said: "Turnover growth achieved in the first half was mainly attributable to our industry leadership in the core electronic calculator and liquid crystal display (LCD) business lines. Sunway remains one of the largest manufacturers of calculators and LCD in Mainland China. Together, these two product lines registered an 18.8% surge in sales."

Business growth in the LCD line was attributed to the Group's demand-driven expansion of production capacity during the period, supported by aggressive marketing efforts. The calculator and LCD business categories contributed 57.9% and 12.9% of the Group's turnover for the period.

During the period, the Group set up a new subsidiary initially to engage in the distribution of electronic components, in particular computer parts and components, in Hong Kong and Mainland China. This new establishment has helped strengthen the Group's sales and distribution network in the country. Focused efforts in expanding overseas markets have also rewarded the Group with significant sales surge in North America and Europe.

Ms Wong added: "With our dominant position in Mainland China and gradual expansion into overseas markets, we foresee stable performance in the second half. In addition to pursuing active developments in the core business lines, we will also leverage our strengths to enhance corporate development and provide value-added services to customers. We will strive to restore gross profit margin once oil prices revert to a normal level and to consider new synergistic business opportunities in order to maximise returns for our shareholders."

Accounts receivable position continues to improve with some long-standing debts being recalled. The accumulated provision for doubtful debts was HK$14,982,000 for the period. As at March 31, 2004, total shareholder equity remained stable at HK$872,719,000. Cash and bank deposits stood at HK$179,572,000, with interest-bearing bank borrowing reducing by 20.3% to HK$78,949,000 after repayment of bank loans. The Group's gearing ratio was 24.8% as at March 31, 2004.

Financial Highlights

	Six months ended March 31,
	2004	2003
	HK$ '000	HK$ '000
Turnover	361,210	306,045
Gross Profit	42,266	40,219
Profit before Taxation	18,788	15,378
Net Profit Attributable to Shareholders	15,930	13,730
Earnings per Share - Basic	HK1.57 cents	HK1.35 cents
Interim dividend per share	Nil	Nil

About Sunway International Holdings Limited
Sunway International Holdings Limited (SEHK: 58/SES: Sunway) is a world 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 of 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 17,000.

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Sunway International Holdings Limited

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