SEO Version
13
ANNUAL REPORT 2013
OPERATIONS REVIEW
Automotive (7.0% of the Total Revenue)
The automotive segment was our fastest growing business segment in FY2013. Revenue contribution from this segment was
HK$219.6 million, representing 7.0% of total Group revenue. The high growth in this segment demonstrated our efforts in
investing in our people and our engineering capabilities in order to tap on the strong domestic demand in China, which
has been crowned as the world’s largest consumer and manufacturer of automotive goods. To ride on this strong growth,
we will continue to invest in this segment.
This segment covers car infotainment system, car body control unit, engine control unit and other car electronics.
Dealer (14.6% of the Total Revenue)
This segment saw a rise in revenue by 5.1% as compared to the previous year, to HK$462.2 million. The increase was
due to a competitive price offering in the partnership programmes that we entered into with our industrial market dealers
to broaden the reach of our power devices, especially in the lower-tier cities. In addition, as a result of the trend towards
shorter ordering cycles, customers had to source for required parts from various channels in order to fulfill demand, thus
creating opportunities for our dealers to further support us in widening our customer base.
Audio and Video (10.0% of the Total Revenue)
Sales revenue generated from this segment was HK$316.7 million in FY2013, 11.8% less than the previous year. The
main reasons for this decline were (i) the weak demand from both the US market and domestic PRC market, and (ii) the
change in the smartphone docking connector, which resulted in many projects being suspended until September 2012.
Currently, we are seeing projects being reactivated and demand is well-supported by the growth of the export market.
EMS (7.7% of the Total Revenue)
Revenue from this segment dropped 21.0% in FY2013 to HK$242.0 million, impacted by the weaker export demand
from the US and European markets. With the US economy improving and the Eurozone seen stabilizing, we believe a
pick-up in the export market will soon be in sight. We will work very closely with our customers and suppliers to ensure that
our inventory is maintained at its optimal level – sufficient to capture growth opportunities with minimal inventory risk.
Lighting (4.7% of the Total Revenue)
FY2013 was a tumultuous years for our lighting segment. Weakness in the worldwide economy had put the brakes on
new construction projects in both the commercial and residential segments. Although there are huge opportunities in the
light-emitting diode (LED) lighting market, the market is currently still at its introductory stage whereby adoption rate is
relatively slower. Oversupply in this market had resulted in price erosion, and as a consequence, our revenue from this
segment dropped 17.7% to HK$149.4 million.
Besides LED lighting, this segment also covers general lighting, ballast and high-intensity discharge (HID) lamps.
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