Sunway International Holdings Limited announces Second Interim Results for the twelve months ended 30 September 2014

HONG KONG, Nov. 14, 2014 /PRNewswire/ — Leading electronic consumer product and components manufacturer, Sunway International Holdings Limited (SEHK: 58) today announces the unaudited interim results of the Company and its subsidiaries (the "Group") for the twelve months ended 30 September 2014 (the "period").

On 2 May 2014, the Group completed an acquisition of 100% equity interest in Joint Expert Global Limited and its subsidiaries which principally engaged in the manufacturing of construction materials in the PRC.

Consolidated turnover for the twelve months ended 30 September 2014 was HK$896,955,000, representing an increase of 13.7% compared to HK$788,347,000 last period. The Group recorded gross loss for the period of HK$65,498,000 with gross loss margin of 7.3% compared with 9.6% last period. The increase in revenue and improvement of gross loss margin were attributable by the construction materials business.

Net loss for the period was HK$213,448,000 compared with HK$207,558,000 (restated) last period. Basic loss per share for the period was 20 cents. No interim dividend was proposed for the period.

Sales of consumer electronic products accounted for 44.0% of the Group’s revenue and its revenue has significantly decreased by 31.5% from HK$576,348,000 last period to HK$395,027,000. Consumer electronic products were mainly consisted of calculators, watches and clocks and other digital products. Shortage of labour in the PRC caused significant delay on the production lead time and thus, sales volume dropped.

Aggregated revenue from sales of electronic components and parts was HK$325,451,000 and contributed 36.3% of the Group’s revenue. It significantly increased by 53.5% compared with HK$211,999,000 last period. Electronic components and parts were mainly Liquid Crystal Displays ("LCD"), Chip On Glass ("COG") and Quartz. Launchment of bigger size of COG boosted up the revenue.

From the date of acquisition to 30 September 2014, aggregated revenue from the construction materials business was HK$176,477,000 and contributed 19.7% of the Group’s revenue. It represented sales of PC steel bars, PHC piles, ready-mixed concrete and various types of bricks. This segment contributed profit of HK$17,146,000 to the Group.

Profit arising from the construction materials business brings a positive signal to the Group. Looking forward, we will strengthen the knowledge in the construction materials business and aspire to expand in this area.

Financial Highlights

Twelve months ended

30 September

2014

2013

HK$’000

HK$’000

(Unaudited)

(Restated)

Revenue

896,955

788,347

Loss before taxation

(204,930)

(200,911)

Loss for the period attributable to: 
    Owner of the Company
    Non-controlling interests

(217,139)
3,691
(213,448)

(207,558)

(207,558)

Loss per Share – Basic

HK(20cents)

HK$(20cents)

Interim dividend

HK$Nil

HK$Nil

About Sunway International Holdings Limited

Sunway International Holdings Limited is a leading China-based manufacturer of consumer electronic products and components with a wide stretch of businesses including calculators, watches and clocks, digital products, quartz crystals and liquid crystal displays ("LCD") which are mainly based in Fujian province, the PRC. It is one the region’s largest manufacturers of calculators, quartz crystals and LCD. It also participates in manufacturing of construction materials business in Guangdong province, the PRC. The Group has approximately 3,700 staff in the PRC and Hong Kong.