Monday, November 30, 2020
 
Columnist
Martin Hennecke
 
PC PARTNER
HKEx Stock Code : 01263 
 
Corporate Profile
The Group is principally engaged in the design, development and manufacture of video graphics cards. The Group also provides Electronics Manufacturing Service (¡§EMS¡¨) and manufactures other PC related products.

Business Review - For the year ended December 31, 2012

The Group is principally engaged in the design, development, and manufacture of video graphics cards for desktop PCs, electronics manufacturing services (¡§EMS¡¨), and manufacturing and trading in other PC products and components.

The Group manufactures video graphics cards for Original Design Manufacturer/Original Equipment Manufacturer (¡§ODM/OEM¡¨) customers and also manufactures and markets video graphics cards under its own ZOTAC, Inno3D and Manli brands. The relationships with NVIDIA and AMD, the two globally dominant GPU suppliers, enable the Group to develop cost-competitive, high performance products and solutions to serve its customers. Video graphics cards remained as the core business of the Group for the year under review.

The Group provides EMS to globally recognised brands. Among these, the Group manufactures computer base units for a provider of Internet Media Tablets, Point-Of-Sales (¡§POS¡¨) and Automatic Teller Machines (¡§ATM¡¨) systems, as well as modules for a Light Emitting Diode (¡§LED¡¨) provider, a flash memory provider and a healthcare product provider. Besides the video graphics cards and EMS businesses, the Group manufactures and sells other PC related products, such as mini-PCs and motherboards under its own brands, and derives revenue from trading in components.

Business Performance

Total revenue decreased by HK$793.5 million or 13.3%, from HK$5,969.2 million in 2011 to HK$5,175.7 million in 2012.

Asia Pacific region

The Asia Pacific (¡§APAC¡¨) region experienced a decline in revenue by HK$346.5 million or 14.3%, from HK$2,417.7 million in 2011 to HK$2,071.2 million in 2012. This was mainly resulted from a significant decline in sales of video graphics cards to the ODM/OEM basis customers in the region.

Europe, Middle East and Africa region

The Europe, Middle East and Africa (¡§EMEAI¡¨) region experienced a decline of HK$470.1 million or 23.5%, from HK$2,001.6 million in 2011 to HK$1,531.5 million in 2012. It was mainly due to a significant decline in orders from the Internet Media Tablet customer by HK$427.3 million or 49.6%, which was partially offset by a strong demand on LED display products with an increase of revenue by HK$160.3 million or 204.7%, from HK$78.3 million in 2011 to HK$238.6 million in 2012 in the EMS sector. The economic situation in Europe deteriorated noticeably in the financial year 2012 affecting orders for the Group's own brands products, which resulted in significant decline in the demand on ZOTAC products in the region by HK$156.4 million or 22.9%, from HK$681.9 million in 2011 to HK$525.5 million in 2012.

North and Latin America region

The North and Latin America (¡§NALA¡¨) region marked a growth of HK$43.1 million or 7.3%, from HK$586.8 million in 2011 to HK$629.9 million in 2012. It was mainly attributable to revenue contribution from a new EMS customer for the year.

People's Republic of China region

Sales declined by HK$20.0 million, or 2.1%, from HK$963.1 million in 2011 to HK$943.1 million in 2012 for the region. It was mainly resulted from the decline of own brands video graphics cards, which was due to strong price competition from competitors.

Business Outlook - For the year ended December 31, 2012

Given the conservative market sentiment, the Group experienced a challenging year in 2012. In anticipation of a volatile global economy and tough retail and operating environments, the Group will continue with its prudent development strategy to further expand its business channels to develop, produce and promote new products and brand names with our advanced research and development, branding and manufacturing capabilities. Meanwhile, we are well positioned to capture the long-term growth, and are confident with the growth opportunities in the EMS and other PC related products and components segments. Demand for the Group's core products will be maintained at a promising level supported by improving living standards.

Leveraging on our competitive design, development and engineering capabilities, we successfully developed a recognised branding and extensive manufacturing facilities. The Group will continue to push ahead with the development of new products and new businesses in order to drive the revenue growth of the Group. Being one of the world's leading computer electronics manufacturers, we will further strengthen our strategic partnership with worldwide major chipset providers, which will enable PC Partner to develop high performance, cost-competitive products and solutions for our customers.

Source: PC Partner Group (01263) Annual Results Announcement
Chairman N/A Issued Capital (shares) 418M
Par Value HKD 0.1 Market Capitalisation (HKD) 397M
 
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