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A-MAX HOLDINGS LIMITED
Initiated participation in Macau's entertainment sector
in FY2004/05
Hong Kong, July 27, 2005 - A-Max Holdings Limited (HKEx: 959) today announces that in the year to March 31, 2005, the Group posted total turnover of HK$101,144,000, an increase of 9% over the previous year, aided by an overall recovery in orders for liquid crystal display ("LCD") and electronic consumer products. However, a net loss of HK$18,326,000 was recorded as a result of escalating production costs and intensifying market competition. The Group did not recommend payment of a final dividend.
The reporting year witnessed notable corporate advancement for the Group. In addition to dedicated efforts to grow its core LCD and electronic consumer manufacturing business, and as part of its long-term corporate development initiative to broaden its business horizons, the Group initiated participation in the entertainment sector in Macau through its subscription to shares in Greek Mythology (Macau) Entertainment Group Corporation Limited ("Greek Mythology"), as contemplated under an agreement entered into on 30 November 2004.
Having evaluated the prospects for Macau's gaming and entertainment industry and the leading market position enjoyed by Greek Mythology, the Group considers that the investment in this new segment will add further momentum to sustain its long-term growth and profitability.
Reckoning the strong growth trend in Greek Mythology's performance over recent months, the Group has decided to invest more management resources in growing this new business line. It has therefore proposed to appoint new members to its board in order to take advantage of expertise in this arena. These proposed appointments will include Mr Chan King Ming, Michael as Chairman of the board, and Mr Lam Cheok Va, Francis, Vice President of Greek Mythology as executive director. Except Mr Chan King Ming, all the executive directors of the Broad will resign after the coming Annual General Meeting.
Greek Mythology saw the opening of its Greek Mythology Casino in Taipa, Macau, in December 2004. Greek Mythology invested about MPO600 million in the 160,000-sq-ft first phase project with 228 gaming tables, VIP rooms and slot machines. The casino reported a net gaming income of over MOP234 million (net of gambling taxes of about 40% and concessions paid) for the first 4 months of operation. It also saw significant increase in traffic to over 30,000 visitors daily by the end of the second quarter.
The casino's business development plan envisages the adding of about 140,000 sq ft of floor space in the second phase, and a new hotel wing to the project in the third phase. Based on the instant success of the casino project and its excellent growth potential, an independent valuation house valued the project at HK$10 billion in July 2005. The Group holds an optimistic view of the ongoing performance of Greek Mythology.
The LCD and electronic consumer business reported a 9% year-on-year growth in turnover to HK$101,144,000 due to a recovery in market demand and as a result of the Group's proactive business-development efforts over the past year. However, rocketing oil and raw material prices, coupled with labour and electricity shortages in China, continued to put a tighter rein on the segment's performance. Net attributable loss from the LCD segment therefore widened to HK$18,326,000. In a bid to reduce fixed manufacturing-related operating costs, the Group is considering appropriate cost-reduction measures, including the disposal of certain factory assets and the increased engagement of outsourcing capabilities.
The new management team will proactively look out for new and viable business opportunities for the Group, with the objective of turning around its operations and delivering the best returns for the shareholders.
About A-Max Holdings
A-Max Holdings Limited (HKEx: 959) is a leading producer of liquid crystal display (LCD) and liquid display modules (LCM), with a manufacturing plant in Dongguan, China. In November 2004, the Group initiated participation in the entertainment sector of Macau through an interest in Greek Mythology (Macau) Entertainment Group Corporation Limited.
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A-Max Holdings Limited
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