The Group's three core markets, Asia, Europe and America, all experienced a surge in demand, albeit to different extents and with different product mixes. Sales to America, Europe and Asia represented 36%, 32% and 28% of the Group's net turnover respectively.

During the reporting period, the market experienced a reversal in the supply of LCD panels from being inadequate to being in excess of demand, with prices of LCD panels dropping rapidly by some 40% over the six-month period. This supply reversal had prompted the end-user market to react with an even more acute extent of price drop for electronic consumables with LCD display. As the market began to stabilize in late September 2004, the Group has resumed substantial deliveries of LCD monitors. The upward trend for production now extends well beyond March 2005.

Mr Rowell Yang Long-san, Chairman and Chief Executive Officer, PROVIEW International said: "As suggested by several research reports, the global market for LCD monitors in calendar year 2005 will increase to 90 million units, as compared with 64 million units for 2004. We forecast that our sales of LCD monitors will increase substantially in calendar year 2005 thanks to our expanded customer base. In the first quarter of 2005, prices of LCD panels have stemmed their decline and stabilized, and now show some signs of recovery. This trend will facilitate an increase in the demand for LCD monitors and thus Group gross profit is expected to return to its former reasonable levels."

On the other hand, global demand for CRT monitors is expected to reduce to 45 million units in 2005. The Group will increase sales and promotional activities in emerging markets in order to maintain its delivery of substantial volumes of CRT monitors.

In the first half, gross profit on sales was significantly reduced to 7.49% for LCD monitors and 7.75% for CRT monitors, due to the lower prices of LCD products, and aggressive market share development efforts and a larger proportion of ODM sales for CRT products.

As regards sales of flat panel televisions, the Group terminated brand authorization for television products with Motorola during the reporting period and entered into a new contract for authorization of monitors until end of 2006. The Group has shifted its focus to sales of flat panel digital televisions under its own brand and recorded sales volume of 32,000 units and a turnover of HK$103 million during the first half.

Ongoing, the Group plans to manufacture flat panel televisions in specifications ranging from 14" to 42" under its own brand. During the initial stages, the Group will concentrate on sales through its North American market channels. It forecasts that delivery volume this year will substantially increase in accordance with market demand.

As of December 31, 2004, the Group held cash and bank balances together with bank acceptances of approximately HK$985 million (June 30, 2004: HK$1,015 million). The aggregate amount of bank loans of HK$2,217 million was reduced from HK$2,632 million as of June 30, 2004. Financial gearing was 36.5% (June 30, 2004: 44.58%). The inventory value of HK$2,053 million as of December 31, 2004 was reduced from HK$2,604 million as of June 30, 2004.

"PROVIEW maintained its position as the world's 5th largest CRT and 7th largest LCD monitor producer during the first half. Our mission continues to be gaining top three and five rankings respectively for our CRT and LCD lines in 2005," added Mr Yang.

Financial Highlights

	Six months ended December 31,
	2004	2003
	HK$ '000	HK$ '000
Turnover	5,909,063	4,328,363
LCD monitors
Units sold	1.37 million units	1.00 million units
Turnover	2,735,000	2,300,000
CRT monitors
Units sold	4.30 million units	2.80 million units
Turnover	2,735,000	2,300,000
Flat panel televisions
Units sold	32,000 units	N/A
Turnover	103,000	N/A
Profit from operations	131,550	166,212
Net profit attributable to shareholders	65,810	109,992
Basic earnings per share	HK10.25 cents	HK17.16 cents
Interim dividend per share	HK2.2 cents	HK2.8 cents

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 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. It has an annual production capacity of 12 million units of CRT monitors, 11.4 million LCD monitors and 780,000 flat panel TVs. For more information, please visit www.proview.com.

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PROVIEW International Holdings Limited

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