Corporate News
Willas-Array Reports Net Profit Of HK$21.2 Million For FY2002
Singapore - 28 June 2002 - Willas-Array Electronics (Holdings) Limited ("Willas-Array"), one of the largest Hong Kong-based distributors of electronics components in the Asia Pacific region, today reported net profit of HK$21.2 million (S$4.8 million) for the year ended 31 March 2002.
This was achieved on sales of HK$957.1 million (S$216.0 million). For the same period last year, the Group's net profit was HK$52.7 million and sales were HK$1.2 billion.
Based on the existing issued share capital, earnings per share was 8.41 HK cents compared to 24.79 HK cents previously, while net tangible asset per share rose to 82.26 cents from 69.36 HK cents.
Executive Chairman, Mr Lawrence Leung said, "The downturn in the global electronics components industry in 2001 was the worst we have seen in our 20 years of business. We have been able to stay profitable and financially stable through stringent risk management controls. These have ensured that our balance sheet remains healthy and our cashflow, strong."
As at 31 March 2002, Willas-Array's cash balance remained at HK$135 million. The debtors and inventory turnover ratios remained at 2 months and 1.5 months respectively.
Mr Leung said, "We are beginning to see some signs of recovery. With our financial strength, we believe that we are able to ride on this rebound and tap on the growth opportunities we see in the markets that we operate in."
The China market continues to be the main focus for the Group as it spearheads the Asia Pacific region to become the world's largest in terms of chip sales over the next four years1. The components industry in China is expected to receive a significant boost with the entry of China into WTO, rising global outsourcing trend and increasing exports from indigenous China companies.
"Contribution from the China market accounts for 22% of group sales in FY2002, compared to 19% in FY2001. With the potential of a growing China market, we expect direct sales to China to contribute about 50% to our revenue over the next three to five years," said Mr Leung.
To further expand its earnings stream, Willas-Array has also recently established a 70% -owned subsidiary in South Korea. For a start, Willas-Array has been awarded distributorship by STMicroelectronics Asia Pacific (Pte) Ltd for its products in South Korea.
On prospects for the current year, Mr Leung said, "Since the start of this current year, we have seen orders picking up. If the growth momentum we have seen so far continues into the second half of the year, and barring any surprises, we expect to do better this year."
1 Semiconductor Industry Association, Press Release 5 June 2002.
For more information, please contact:
Mr Andy Hung, Chief Financial Officer
Willas-Array Electronics (Holdings) Limited
Tel: 852 2418 3838
Email: andyhung@willas-array.com
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Established since the early 1980s, Hong Kong-based Willas-Array is principally engaged in the distribution of active and passive electronic components for use in the audio/video, telecommunications, industrial, consumer and computer segments. Backed by long-standing relationships with over 20 reputable Principals, Willas-Array carries a wide product mix distributing and marketing in excess of 10,000 product items which cater to over 2,000 active customers. Its main markets are in Hong Kong and the PRC.
In the PRC, Willas-Array has established a network of representative offices strategically located in Beijing, Guangzhou, Shanghai, Shenzhen, Qingdao, as well as an Application and Development Division in Guangzhou. It is in the midst of establishing a subsidiary in the Free Trade Zone within Shanghai that will serve as a logistics centre for the Group in China. In South Korea, Willas-Array has a representative office which commenced operations in May 2002.
