Nanjing Sample Tech, which provides video security systems in China, is looking to raise funds to meet surging demand for its radio frequency identification products made in partnership with Intel Corp and in anticipation of new orders in the run-up to the 2008 Beijing Olympic Games.
The Hong Kong-listed company, whose shares have surged more than 200 per cent in value this year as profit has almost doubled, is considering placing shares to raise cash, president Sha Min said.
Nanjing Sample is benefiting from growing demand for RFID tags from manufacturers and logistics firms that use the small devices to track goods as they are moved from manufacturer to retailer.
The company imports chips from Royal Philips Electronics of the Netherlands and Texas Instruments of the United States to embed in its products.
RFID products, which accounted for 20 per cent of Nanjing Sample's sales in the nine months to September 30 with a gross profit margin of 50 per cent, will become the company's core business in 2009 when China fully opens the market, Mr Sha said.
Securing an Olympics-related contract would be a big step in that direction.
'We have been providing video security systems for China's traffic monitoring and control sector for the past six years and will probably bid for the Olympics' RFID logistic systems,' Mr Sha said.
