The mainland has become the growth driver for electronics component-maker Varitronix International as the number of mainland electronic goods manufacturers has risen sharply, while North American customers have increasingly shifted factories to China.
Chang Chu-cheng, chairman of main board-listed Varitronix, said the mainland and Hong Kong accounted for 26 per cent of first-half sales, up from 10 per cent in the same period last year. He expected the trend to continue as growth of the United States economy remained weak.
Europe remained the firm's top market, taking 52 per cent of sales in the first half - up from 50 per cent in the same period a year earlier.
The company makes liquid-crystal display (LCD) products - a key component for mobile phones, personal digital assistants and advertisement sign boards.
After reporting a 17.9 per cent year-on-year first-half net profit decline to HK$44.34 million, Mr Chang said the second-half outlook remained cloudy, but orders were expected to see 'healthy growth'.
He said the main reason for the decline was a HK$10.47 million loss on its investment in a mutual fund which was liquidated unexpectedly.
Excluding the loss, net profit would have been flat from last year, outperforming some of its Taiwanese rivals which tended to have a narrower customer focus than Varitronix, he added.
