Capitalizing on the Group's underlying strengths, including a global sales network, recognized brand names, comprehensive product range, strategic supplier partnerships and a high degree of vertical integration, PROVIEW International continued to expand its global market share in both CRT and LCD monitors. In the first half of 2002/03, the Group shipped 2,200,000 units of CRT monitors, placing it as the world's 5th largest producer with a global share of about 6%, and comparing favourably with the full-year shipment of 2.9 million units in fiscal 2001/02. This strong sales growth was achieved against a backdrop of a global decline in sales of CRT monitors from 88 million units in 2001 to 84 million in 2002. In the high-growth segment of LCD monitors, the Group's shipments also grew rapidly to 700,000 units in the last six months, which surpasses last full fiscal year's 650,000 units, representing a global share of about 4% or 7th largest.

Mr Rowell Yang Long-san, Chairman and Managing Director of PROVIEW International noted: "While we remain confident of our sales prospects of CRT monitors as leading producers like PROVIEW International will continue to benefit from the ongoing industry consolidation, we have also covered a great deal of positive ground in jumpstarting our LCD monitors business line into one of the world's foremost players. We have been successful in growing the LCD monitors line to 47.8% of group revenues, or HK$1,604 million in sales."

Mr Luffer Wong, Executive Director, PROVIEW International added: "As a result of our global and direct-sales marketing strategy, we were able to achieve a more balanced geographical spread on a global distribution platform covering 50 countries and major mass merchandisers such as Circuit City, Best Buy, Dixons, Sam's Club and Carrefour."

Sales to North America, Europe and Asia Pacific accounted for 37.38%, 30.61% and 26.75% of group revenues respectively. Years of brand development efforts have given the Group a unique niche compared with most other ODM or OEM monitor manufacturers. During the period, the Group entered into agreements with Xerox and Sylvania, and added these two brands to its existing list of PROVIEW, EMC and MAG labels. Consistent with its brand-driven marketing approach, sales of the Group's own five branded product lines contributed about 60% of group turnover.

To strengthen the platform for driving sales further, PROVIEW International has formed strategic alliances with key components suppliers including Samsung SDI, AU Optronics and CM Optronics to solicit more advantageous pricing, payment and delivery terms. Such partnerships enable the Group to keep up the growth momentum.

In keeping with market trends, the Group has continued to add new features to its CRT and LCD monitors, while progressing further in other applications of display technologies such as LCD TV sets, plasma TV and virtual or net PCs. Trial production of 42-inch plasma TV commenced in January 2003 with first shipment scheduled for March 2003. Research and development (R&D) expenses for the period amounted to HK$18.5 million. Consistent R&D initiatives have led to the introduction of a number of novel high-end LCD products including a super-thin LCD monitor with aluminum casting and other premium LCD monitor models. R&D resources were also put into the development of TFT TV and plasma TV (PDP), which are expected to become the Group's future growth drivers.

In the first half, the Group invested in the development of LCD modules (LCM). "As part of our initiative to advance vertical integration of our production, which is one of our core and unique competencies, we have made further advances in upstream integration into the manufacturing and assembly of CRT deflection yokes and LCM," said Mr Wong.

As of December 31, 2002, the Group had cash and bank balances of HK$561 million (June 30, 2002: HK$274 million) and total shareholders' equity of HK$664 million (June 30, 2002: HK$581 million). During the period, the Group has fully redeemed its US$20-million convertible bonds.

Financial Highlights

	Six months ended December 31,
	2002	2001
	HK$ '000	HK$ '000
Turnover	3,356,000	2,271,000
Profit from operations	103,689	60,391
Net profit attributable to shareholders	73,276	19,978
Basic earning per share	HK11.53 cents	HK3.41 cents
Interim dividend per share	HK1.7 cents	Nil

About PROVIEW International
PROVIEW International Holdings Limited (SEHK: 334) is a world top-five display devices producer owning globally recognized house brands including PROVIEW and EMC. The Group's vision is to maintain innovation and market leadership in video display technologies for computing devices, television, consumer electronics and Internet devices. It commands a global retail-sales and distribution network covering 50 countries with strong leverage of its world-class manufacturing facilities in China, Taiwan and Brazil. The Group operates offices in Hong Kong, the United States, the United Kingdom, the Netherlands and Belgium. It has a staff of 5,600 and an annual production capacity of 10 million units of CRT monitors and 4.5 million LCD monitors.

Issued by :
PROVIEW International Holdings Limited

Through :
t6.communications limited
Stella To or Angus Ho or Frances Lam
tel: 2511 8388 / fax: 2511 8238
email: enquiry-at-t6pr.com (use "@" to replace "-at-")
URL : http://www.t6pr.com