'Our Christmas orders are so far quite satisfactory.'

However, the company was facing higher margin pressures this year because of rising raw materials costs, so it would focus more on high-margin products to maintain its gross margin, Mr Yeung said.

'As the credit market is so unstable, we prefer to do business with recent customers instead of new customers, to avoid overdue bills,' he said.

'With net cash of about 300 million yuan (HK$340.68 million), we may consider buying back our shares or acquiring some research and development firms.'

Fujikon recorded a 3.7 per cent drop in sales to HK$1.62 billion for the year ended March, while net profit fell 13.2 per cent to HK$138.2 million.

Suga Digital Technology, a maker of electronic photo frames and telecommunications products, said sales in the three months to December would probably record double-digit growth, mainly contributed by new products.

The company recently launched a portable mini video projector compatible with Apple's iPods and other multimedia devices.

'After the global credit crunch [began], we started to ask our customers to provide us with letters of credit before we took their orders,' Suga chairman Ng Chi-ho said.

IDT International, a maker of health care and electronic learning products, also expected growth in Christmas orders.

The company recorded a 4 per cent decline in sales to HK$2.11 billion in the year to March from a year earlier after it halted production of digital audio players and digital cameras.