Thursday, March 28, 2024
 
Columnist
Martin Hennecke
 
TONLY ELEC
HKEx Stock Code : 01249 
 
Corporate Profile
The Group is a leading vertically-integrated manufacturing services provider in the audio-visual (“AV”) products industry, and principally engaged in the research and development, manufacturing and sales of AV Products (excluding TV sets) for third parties' brands on an ODM basis. The Group's products generally fall into three categories, namely (i) video products, mainly DVD Players, BD Players and Media Boxes; (ii) audio products, mainly Home Theater System (家庭影院) (“HTS”), Micro & Mini speakers (小型 音箱) (“Micro & Mini”), Soundbars, Dockings and Wireless Speakers; and (iii) other products, mainly Advanced Broadcasting System-Satellite (直播星) (“ABS-s”) and components. During the Track Record Period, the Group only conducted a small amount of AV Products business on an OEM basis in 2010.

According to the market research report prepared by Euromonitor which was commissioned by the Group (the “Euromonitor Report”), the Group was the largest video products manufacturer and the third largest HTS & Soundbars manufacturer in the PRC, in terms of production volume in 2012. China is the largest manufacturing location for AV Products (excluding TV sets) with products production volume of approximately 261.0 million units in 2012, representing approximately 82.1% of the total global production, and Euromonitor expects that China will continue its leadership over other regions, although the AV production volume in China is expected to slightly decrease to approximately 227.9 million units in 2015. In terms of products development, BD Players, Dockings and HTS & Soundbars are expected to be the key growth drivers with a forecasted CAGR (2012-2015) of approximately 19.0%, 9.3%, and 6.8%, respectively, while DVD Players are expected to decrease with a CAGR (2012-2015) of approximately -16.2% due to the declining demand and replacement by BD Players.

The Group's principal business model is to fulfill production orders for AV Products (excluding TV sets) on an ODM basis for well-known brands in the global AV consumer products industry, which will be its business focus in the foreseeable future. Along the industry value chain, its current value range mainly covers product design, design and manufacturing of certain components and parts as well as product processing and assembly.

The Group commenced its DVD Players manufacturing business on an ODM/OEM basis in 2002, and have since then expanded and diversified its product portfolio progressively to include audio products and other products such as ABS-s. Among its products, the sales of DVD Players accounted for approximately 66.0%, 64.2%, 34.4% and 25.1% of its turnover for each of the three years ended 31 December 2012 and the three months ended 31 March 2013. However, in view of the shrinking global market demand for DVD Players in recent years according to Euromonitor, the Group expects that its future growth will mainly be driven by, inter alia, the further increase of its market share of the traditional AV Products (excluding TV sets) (such as BD Players, HTS and Micro & Mini), its expansion into the growing new audio products sector and its continued development in the ABS-s market in China. During the three years ended 31 December 2012, the turnover of its video products represented a CAGR of approximately -15.0%, while the turnover of its audio products and other products represented a CAGR of approximately 92.2% and 34.3%, respectively.
Chairman YUAN, Bing Issued Capital (shares) 133M
Par Value HKD 1 Market Capitalisation (HKD) N/A
 
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