Hutchison Whampoa does not plan to inject manufacturing-related businesses into its 50.5 per cent-owned toy manufacturer Hutchison Harbour Ring, according to executive director Dominic Lai Kai-ming.
But the toy company's future expansion would benefit from the support of its parent company's well-established global business network, said Mr Lai, who is also Harbour Ring deputy chairman.
Through the Hutchison Whampoa relationship, Harbour Ring products had received a good response during an introductory meeting with Asian companies, he said after the firm's annual general meeting.
Mr Lai said Harbour Ring would diversify into manufacturing high-value and high-margin products such as digital cameras, TV game peripherals and other electronic products.
Asked whether the company would manufacture mobile phone handsets for its parent, he said Harbour Ring had no production facilities for such products unless it formed partnerships with existing manufacturers.
He emphasised the firm would not abandon its core business - toy manufacturing - as returns remained attractive.
Daiwa Institute of Research forecasts the company's non-toy manufacturing sales could reach HK$2 billion in 2004, replacing toys as its major income source.
