Mr Rowell Yang Long-san, Chairman and Chief Executive Officer, PROVIEW International remarked: "The principal revenue growth driver was the surging demand and replacement needs for TFT-LCD monitors, especially models with large screens. Better economic conditions also led to increased corporate spending on equipment."
The Group's LCD monitors shipment demonstrated an impressive growth of 175.2% to 3.77 million units during the period, while 3.14 million units of CRT monitors were shipped, down 27.0%. The gross profit margin for LCD monitors moderated to 7.26% from 7.49%, and for CRT monitors, it remained stable at around 7.11%. The Group will continue to deploy resources efficiently to cater for the different market demands for different products.
Sales in North America, Western Europe and Asia made respective contributions of 27%, 34% and 35% to the Group's consolidated turnover. All regional markets enjoyed growth and the Group will continue to broaden and diversify its customer base across different regions.
A Market Intelligence Centre ("MIC") report published in November 2005 indicates that worldwide shipment of LCD monitors will grow from 102 million units in 2005 to 152 million units in 2008, representing an annual growth rate of around 13%, while the global shipments of flat digital TVs will experience drastic expansion from 26 million units in 2005 to 79 million units in 2008, with an annual growth rate of over 40%. Industry researchers expect that after LCD monitor, flat digital TV will become the new growth driver of the TFT-LCD industry in the coming years.
With better cost structure and appealing product designs, the Group is confident of continuous substantial growth in the sales of LCD monitors and achieving its corporate goal of becoming one of the world's top five LCD monitor manufacturers in coming years.
For flat digital TVs, the Group expects to enjoy an annual double digits growth in shipment in 2006. Currently, the Group's flat digital TVs are mainly sold under the "Proview" and "MAG" brands in North America. There are plans to enter the flat digital TV OEM business, so as to significantly increasing its annual flat digital TV shipment in the next three years.
Mr Yang continued: "The Group has been investing substantially into the development of ODM business and now, almost all major computer name-brands in the world are our ODM customers. This is a testimony to our excellent product quality. Their orders also help expand the Group's economy of scale in production."
The Group's ODM and branded businesses accounted for approximately 81% and 19% of the consolidated turnover in this period respectively. The Group's near-term plan is to increase the branded business to approximately 30% of the Group's consolidated turnover.
Strategic partnership with major upstream suppliers is an important platform to bolster manufacturing and cashflow efficiency, control cost and strengthen the Group's value chain of operations. The Group is in an OEM partnership with Chi Mei Corporation, a major panel manufacturer in Taiwan, for the production of LCD monitors and flat digital TVs.
As at December 31, 2005, the Group's cash and bank balances stood at approximately HK$2.2 billion. Inventories decreased to around HK$2.1 billion (June 30, 2005: HK$2.4 billion), with inventory turnover days reducing to 53 days (June 30, 2005: 81 days) as a result of consistent Group efforts.
Financial Highlights
| Six months ended December 31, | ||
| 2005 | 2004 | |
| HK$ '000 | HK$ '000 | |
| Turnover | 8,406,595 | 5,909,063 |
 LCD monitors |
||
| Units sold |
3.77 million units | 1.37 million units |
| Turnover |
5,748,000 | 2,736,000 |
| CRT monitors |
||
| Units sold |
3.14 million units | 4.30 million units |
| Turnover |
1,794,000 | 3,041,000 |
| Flat panel televisions |
||
| Units sold |
121,000 units | 32,000 units |
| Turnover |
583,211 | 103,000 |
| Profit from operations | 189,498 | 127,803 |
| Net profit attributable to shareholders | 107,231 | 62,063 |
| Basic earnings per share | HK16.61cents | HK9.66 cents |
| Interim dividend per share | HK2.5 cents | HK2.2 cents |
About PROVIEW International
PROVIEW International Holdings Limited (HKEx: 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 6 million units of CRT monitors, 13 million LCD monitors and 1.2 million flat digital TVs. For more information, please visit www.proview.com.