Principally engaged in the manufacturing and marketing of consumer electronics and communications products and software development.
Business Review - For the year ended December 31, 2006
The Group has one business segment, being the manufacturing and marketing of consumer electronics and communications products and software development.
The results and prospects of its various products within this segment are as follows:
Mobile Phone Accessories
During the twelve months ended 31 December 2006, the Group recorded sales of mobile phone accessories of approximately US$103.47 million, representing 58.0% of the Group's turnover and a significant growth of approximately 135.2% when compared to US$44.00 million for the same period last year as a result of the robust growth in sales of products featuring BluetoothR wireless technology. This category is expected to be continuously strong in view of the growing market demand for mobile phones featuring BluetoothR wireless technology in 2007.
Home Entertainment Devices
During the twelve months ended 31 December 2006, sales of home entertainment devices were approximately US$36.47 million, representing a decrease of approximately 31.1% from approximately US$52.94 million for the same period last year. The Group is seeking more opportunities from existing and new customers for new product proposals, and it is expected that this category will remain one of the Company's major businesses in 2007.
Educational Products
During the twelve months ended 31 December 2006, the Group's educational product business achieved sales of approximately US$25.56 million, representing a slight increase of approximately 5.0% as compared to the sales of approximately US$24.35 million for the same period last year. The Group is actively widening its customer base and seeking opportunities to manufacture diversified products for its existing customers in order to achieve a higher growth in the coming years.
Optical Devices
During the twelve months ended 31 December 2006, sales of optical devices dropped to approximately US$9.83 million, representing a reduction of approximately 76.8% as compared to the sales for the same period last year of approximately US$42.35 million. Extremely competitive pricing environment for camera modules in the mobile phone market continues to erode the Company's market share and margin. It is expected that realignment into camera module market for notebook computer will help the Company achieve a more moderate margin and revenue growth in this category.
Software Development Services
During the twelve months ended 31 December 2006, sales amounted to approximately US$3.00 million which comprised mainly the sales of the dictionary business, representing a decrease of approximately 18.9% from approximately US$3.70 million for the same period last year. The Company will continue its development efforts on navigation system and seek more business opportunities from its current and new customers for growth in this segment.
Source: Nam Tai Products (2633) Annual Report 2006
