China electronics firm books record earnings
NAM Tai Electronics, a mainland manufacturer of electronic equipment listed on New York's over-the-counter market, has reported record earnings for 1993.
The company reported net profit of US$5.2 million, a 108 per cent advance on the year to 31 December 1992.
Revenue was also at record levels, according to Nam Tai chairman M.K. Koo.
He said sales for 1993 had been $70.8 million, up 22.2 per cent.
Earnings per share were 87 US cents, from 47 cents.
Operating margins rose to more than eight per cent in 1993, compared with 4.7 per cent in 1992. The net income ratio in 1993 was 7.34 per cent, from 4.32 per cent.
The ratio on December 31 was 2.98, compared with 1.85 on the same day in 1992. Shareholders' equity increased from $16.37 million to $28.16 million.
Nam Tai carries out the entire product cycle in China for customers including Toshiba, Canon, Sharp, Texas Instruments, Seiko Instruments and Radio Shack.
Products include liquid crystal display modules for telephones, personal organisers, language translators and health-care products including electronic blood pressure meters.
In the fourth quarter, a $654,000 loss was turned to a profit of $1.9 million. Net sales, at $18.2 million, were 15.6 per cent higher than a year earlier.
The loss in the fourth quarter of 1992 was attributable to the cost of cancelling a proposed stock offering, according to Mr Koo.
This year looked set to be another bumper year for the company, he said. ''We have confirmed orders for $16.1 million in the first quarter compared with $14.2 million in 1993,'' he said.
''We expect to hit new sales and earnings records in 1994 as well. We are well positioned to finance our on-going expansion programme as our position is very strong with cash balances of $14 million.
''We believe 1994 will be a very exciting year for the company as we are planning to start several big projects this year.''