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.'