Computer monitor manufacturer TPV Technology says it has yet to decide where to build a new factory - a month after raising HK$301 million from shareholders to finance the expansion. TPV chairman and managing director Jason Hsuan was speaking on Tuesday as the company announced a 37.3 per cent jump in first quarter net profit. The company's net profit for the first three months reached US$10.72 million, up from US$7.81 million in the same period a year ago. Turnover surged 41.8 per cent year on year to US$348.79 million. The company attributed the strong earnings growth to better cost-efficiency management and a sharp rise in sales of higher end liquid crystal display (LCD) monitors. On May 29, TPV placed 105 million new shares at a deep discount to raise gross proceeds of HK$306.6 million, saying it would use HK$156 million to finance the establishment of a new production facility. However, Mr Hsuan told reporters yesterday that the company's production capacity would be sufficient to keep up with the firm's expansion until next year. No extra production capacity will be needed until 2004, he said. 'Our existing LCD capacity can produce up to 3.5 million units a year. This is enough for next year. The new factory will be for the year after.' Last year, TPV sold 900,000 LCD monitor units. The company aims to sell two million units this year and three million by next year. Asked why the company had rushed to raise funds it did not need, Mr Hsuan said the management needed to 'plan ahead'. 'We want to select a good site and spend less on investment,' he said, adding the company was choosing between a few locations. He did not see any need to finalise its plans for the new factory until the end of the year. Construction could take place as late as the middle of next year. 'Building a factory is easy, we can complete construction in six to 12 months,' Mr Hsuan said. Mr Hsuan claimed TPV had picked the right time to raise the money as the share placement had helped to lower the company's gearing ratio and save interest expenses. He said the proceeds would be used as general working capital and kept in the meantime in interest-bearing bank deposits. 'Last year, our interest expenses were 0.7 per cent of our revenue. This year [interest expenses] could be as low as 0.3 per cent [to turnover] . . . That's the money we can save. We have to look after our shareholders' interest,' Mr Hsuan said. TPV shares have lost 12.4 per cent of their value since it announced the planned share placement last month, edging down from about HK$3.20 to as low as HK$2.52, before bouncing back to HK$2.80 by yesterday's close.