Gold Peak's Singapore-Listed Electronics Division Announces Interim Results
23 December 1999
GPE Industries, Gold Peak's Singapore-Listed Electronics Division Announces Its Interim Results, Profit Up 15.6%
Business Editors
HONG KONG--Dec. 23, 1999--GPE Industries Limited
("GPE Industries"), a 66.06% owned Singapore-listed Electronics
Division of Gold Peak Industries (Holdings) Limited is pleased to
announce its unaudited consolidated results for the six months ended
September 30, 1999 as follows:
-0-
*T
1999/2000 1998/1999
S$'000 HK$'000 S$'000 HK$'000 (Note)
Turnover 120,006 552,027 127,573 590,661
= = = = = = = = = = = = = = = =
Operating Profit / (Loss) 331 1,522 (1,869) (8,653)
Share of Results of
Associated Companies 10,662 49,045 10,213 47,284
------ ------ ------ ------
Profit before Taxation 10,993 50,567 8,344 38,631
Taxation (2,375) (10,925) (1,338) (6,194)
------- -------- -------- -------
Profit after Taxation 8,618 39,642 7,006 32,437
Minority Interests (24) (110) 427 1,977
------- -------- -------- -------
Profit Attributable to
Shareholders 8,594 39,532 7,433 34,414
= = = = = = = = = = = = = = = =
S cents HK cents S cents HK cents (Note)
Earnings per share 3.58 16.47 3.10 14.34
= = = = = = = = = = = = = = = =
Dividend per share
Interim 1.2 5.5 1.0 4.6
= = = = = = = = = = = = = = = =
Note:
The Hong Kong dollar equivalents as shown above for illustrative
purposes are converted at the exchange rates ruling as at the
respective period end dates.
Summary of Results
GPE Industries achieved a significant recovery during the 6-month
period ended September 30, 1999 despite a slight decrease of 5.9
percent in turnover to S$120 million. Profit after tax attributable to
shareholders rose by 15.6 percent to S$8.6 million compared to the
corresponding period last year. The drop in turnover was due mainly to
the sale of GPE Industries' stake in the joint venture, Car Audio
Electronics China Limited ("CAE"), in January 1999.
Basic earnings per share, based on 240,000,000 (1998:
240,000,000) shares in issue during the period, increased by 15.5
percent to 3.58 Singapore cents when compared to 3.10 Singapore cents
for the corresponding period last year.
Business Review
The export market for consumer car audio products was stable.
However, GPE Industries' turnover in these products decreased due to
the disposal of its stake in CAE. On the other hand, sales to the
automotive industry in China continued to achieve solid growth. The
specialty electronic business performed satisfactorily and the
newly-acquired Parts and Components business also grew healthily.
Automotive wire harness export to Japan grew by more than 60
percent when compared with the corresponding period last year.
Contribution from the cable business under LTK Industries Limited also
grew impressively due to strong demand for LAN (Local Area Network)
cables and other computer cables.
The UK Branded loudspeaker business also recovered noticeably.
The cost reduction and streamlining program undertaken by GPE
Industries further enhanced the competitiveness of the UK operation.
Other Asian speaker joint ventures continued to perform well.
Prospects
The Asian economy has bottomed out and the general business
prospect for GPE Industries is significantly more positive.
While the market for car audio products in China continues to
grow healthily due to strong economic activities in China, the export
market is expected to remain steady. Sales of specialty electronic
products, especially commercial and professional audio, are expected
to exhibit healthy growth with broadened customer base and product
range. The Parts and Components business is expected to continue
contributing satisfactorily throughout the financial year.
Export of automotive wire harness is expected to continue with
strong growth with the commencement of operations of an additional
facility of 10,000 square-meters in Huizhou in January 2000. In
Shanghai, GPE Industries has become a major wire harness supplier to
Shanghai Volkswagen. With the new 30,000 square-meters factory and
increasing demand from the Chinese automotive industry, the Shanghai
joint venture is expected to grow rapidly. Prospects for the cable
business are optimistic as demand for LAN cables and the recently
launched Broad Band cables remains strong.
The UK Branded loudspeaker business is expected to further
improve in the second half of the fiscal year. The prospects for other
Asian speaker joint ventures remain positive. In Taiwan, Meiloon
Industrial Co., Ltd., which is 23.3 percent owned by GPE Industries,
is awaiting final approval for public listing in Taiwan's
over-the-counter market.
Barring unforeseen circumstances, GPE Industries is expected to
continue with its satisfactory performance in the second half of the
financial year.
GPE Industries Limited
GPE Industries Limited ("GPE") has been listed on the main board
of the Stock Exchange of Singapore Limited since 1995. It is the
Electronics Division of Hong Kong- listed Gold Peak Group. GPE is a
major manufacturer in automotive electronics including car audio and
auto harness products. In related areas, GPE also produces specialty
electronic products and high quality cables & cable assemblies. In
1997, the company diversified into the manufacture and marketing of
high-end loudspeaker products.
The company's electronics and cable & harness businesses are
supported by an extensive manufacturing and marketing network in China
and Hong Kong and a strong distribution network in the ASEAN region.
Its Acoustics Group also has a strong manufacturing base in the UK and
Asia.
Excluding associated companies, GPE currently employs about 2,700
people, and occupies a total floor area of about 95,400 square meters.
For more information on GPE Industries, please visit
http://www.gpe-ind.com.sg
Gold Peak Group is an Asian multinational Group engaged in the
development, manufacture and distribution of batteries, electrical
installation products, automotive electronics, cable products,
loudspeakers and high precision parts & components. The parent
company, Gold Peak Industries (Holdings) Limited, has been publicly
listed in Hong Kong since 1984. It has evolved from an operating
manufacturer into an industrial investments holding company with a
diversified portfolio of high quality industrial investments.
Its three major member companies, GP Batteries International
Limited, Clipsal Industries (Holdings) Limited and GPE Industries
Limited have been listed in Singapore since 1991, 1992 and 1995
respectively.
Gold Peak Group currently has manufacturing, research and
development, marketing and distribution operations in more than 10
countries around the world and has established a leadership position
in Asia Pacific for most of its product categories.
Gold Peak's ordinary shares are listed on the Hong Kong Stock
Exchange. Additional share information on Gold Peak may be accessed on
the Reuters Equity 2000 service under the symbol 0040 HK, on Bloomberg
under the symbol 40 HK, and on Quotron under the symbol GDPHK. Gold
Peak ADRs, each equal to ten ordinary shares, trade on the NASD OTC
Bulletin Board.
For more information on Gold Peak Group, please visit our website
at http://www.goldpeak.com