Limited信利国际有限公司6.pdf

Management Discussion and Analysis Management Discussion and Analysis BUSINESS REVIEW LCD sales for the year were about HK$4.4 billion (2004: LCD 4431 HK$3.1 billion), and comprised 96% of the Group’s turnover. 96% In 2005, 76% and 13% of the LCD outputs in dollar term were LCD76% shipped to China and South Korea respectively. Our 13% performance in these two markets were still outperforming over those elsewhere as consistent with the first half year. With GDP heavily relying on exports, these two world-class manufacturing bases are regarded as TRULY’s stepping stone for our products to be recognised in the international market. Despite a negative sentiment being widely spread in the mobile LCD handset market in which the Group’s LCD products have a leverage, we have during the year achieved an overall 23.8%15.3% encouraging gross and net profit margins of 23.8% and 15.3% respectively. In addition to a traditionally tight overheads budget and the effective cost control, the better than expected profit margins were in fact a result of the real return from our investment in automated production plants and the continuous improvement in productivity such as outputs and yields. Vertical integration in production of our LCD modules has been LCD one of our business successes for some time. During the year, the mass productions of flexible and conventional printed circuit boards and camera modules in our own factories had LCDCSTN significantly reduced the purchase cost of making the final LCD products. Together with the increased production capability of the second CST