[NAM TAI LOGO] SECOND QUARTER NEWS RELEASE
- --------------------------------------------------------------------------------
REPRESENTED BY PAN PACIFIC I.R. LTD. CONTACT: Lorne Waldman
1790 - 999 WEST HASTINGS STREET President
VANCOUVER, BC, CANADA V6C 2W2 E-MAIL: shareholder@namtai.com
TEL:(604) 669-7800 FAX: (604) 669-7816 WEB: www.namtai.com
TOLL FREE TEL/FAX: 1-800-661-8831
NAM TAI ELECTRONICS, INC.
New Record Sales for Q2 2005, Gross Profit Margin Rebounds to Over 12%,
Guidance Exceeded
VANCOUVER, CANADA -- August 1, 2005 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NYSE Symbol: NTE) today announced its unaudited results for the
second quarter ended June 30, 2005.
KEY HIGHLIGHTS
(In thousands of US Dollars, except as otherwise stated)
- -------------------------------------------------------------------------------------------------------------------------------
Quarterly Results Half-Year Results
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2Q2005 2Q2004 YoY(%) 1H2005 1H2004 YoY(%)
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Net sales 185,277 147,664 25.5 342,200 243,099 40.8
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Gross Profit 23,835 22,275 7.0 42,252 36,571 15.5
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% of sales 12.9% 15.1% 12.3% 15.0%
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Income from operations 14,322 13,415 6.8 24,056 20,346 18.2
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% of sales 7.7% 9.1% 7.0% 8.4%
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per share (diluted) $0.33 $0.31 6.5 $0.56 $0.48 16.7
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Net income(a) 5,997 83,027 (92.8) 19,803 90,414 (78.1)
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% of sales 3.2% 56.2% 5.8% 37.2%
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Basic earnings per share(a) $0.14 $1.93 (92.7) 0.46 $2.14 (78.5)
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Diluted earning per share $0.14 $1.92 (92.7) 0.46 $2.14 (78.5)
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Weighted average number
of shares ('000)
Basic 42,736 43,100 42,706 42,165
Diluted 42,988 43,141 42,943 42,217
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Note:
(a) Included in net income in the second quarter of 2005 are the following other
income/expenses items:
- $6.5 million unrealized loss on impairment of marketable securities in
TCL Communication (Based on the share price of TCL Communication as at
June 30, 2005).
- $1.3 million in expenses in relation to the termination of a potential
listing of one of the Company's subsidiaries in Hong Kong.
- $1.9 million gain from the partial disposal of the Company's interest
in its subsidiary, Namtek Software Development Company Limited.
After adjusting for the above items, the Company's pro-forma Net Income and
Pro-forma EPS (diluted) for the second quarter of 2005 would have been $11.9
million and $0.28, respectively.
(USD Million) (EPS Diluted
USD)
------------- ------------
GAAP-based Net Income 6.0 0.14
Add:
- unrealized loss on the impairment of
marketable securities in TCL 6.5 0.15
Page 1 of 10
Communication
- expenses in relation to the termination 1.3 0.03
of a potential listing of its subsidiary
in Hong Kong.
- gain on partial disposal of the (1.9) (0.04)
Company's interest in Namtek Software
Development Company Limited
Total 5.9 0.14
--------------------------------
Pro-forma Net Income 11.9 0.28
--------------------------------
Nam Tai is very pleased to announce its strong performance in the second quarter
of 2005. The Company achieved another all time quarterly sales record. This
growth in sales had even exceeded the Company's second quarter upper sales
guidance of $180 million. The growth in sales was mainly attributable to the
growth of the Company's key component sub-assemblies business.
In addition to delivering record-breaking results, the Company also improved its
gross profit margin. With the enhancement of production yield, and our
cost-cutting sourcing strategy, we were able to improve our gross profit margin
from 11.7% in the first quarter of 2005 to 12.9% in the second quarter of 2005.
The diluted income from operations also increased to $0.33 per share, which also
exceeded the second quarter upper guidance of $0.32.
Net profit for the second quarter was approximately $6 million, representing a
decrease of 92.8% as compared with approximately $83 million in the second
quarter of 2004. The significant decrease in the net profit was mainly due to
the Company received a special other income of approximately $71 million from
the IPO of one of its subsidiaries in Hong Kong during the second quarter of
2004.
Mr. Joseph Li, Chief Executive Officer of Nam Tai said, "We are very delighted
to see that the Company has achieved outstanding results in both sales and
profitability during the second quarter of 2005, which even exceeded our
expectations. Such an achievement is a testament to the continued success of our
strategy of focusing on the key component sub-assemblies business. We are
confident of meeting the target of achieving a sales growth of 30%-35% in 2005
and reiterate our overall gross profit margin of approximately 12%."
"We are aware of the uncertainties in the market, such as the shortage of
skilled labor in the PRC, the recent announcement of the 2% appreciation of the
RMB on July 21, 2005, power supply shortages and high oil and material prices,"
commented Mr. Li. "The Company reviews these, and many other issues on a regular
basis, and is taking appropriate steps to safeguard itself and to mitigate the
potential impact on our performance. Our comparatively good wages and benefits
allow us to maintain a very low labor turnover rate. Currently, the Company has
one-third of its cash on hand in RMB, we do not expect any impact from the RMB
appreciation on Nam Tai within this year. Moreover, we are likely to benefit
from the 2% appreciation of the RMB on our reserves in the coming quarter. Our
factories have their own electricity generating capability to ensure our
operations will not be affected by any disruptions to the electricity supply.
High costs of oil and raw materials will undoubtedly exert pressure on the
Company's gross profit margin. Nevertheless, we expect it to be relieved by our
proven cost-cutting sourcing strategy and long term relationship with our
supplier."
Company Outlook
- ---------------
Competition remains keen, especially in the cellular phone market, but Nam Tai
has successfully secured a number of new customers and orders to offset the
potential impact from increased competition and we expect our growth to remain
stable. Going forward, the Company will continue to expand its operation in the
PRC and restructure its Hong Kong operation to keep a minimal workforce, which
we
Page 2 of 10
will maintain for so long as our subsidiaries are listed on The Stock Exchange
of Hong Kong Limited. To keep abreast of the rapid growth in coming years, the
Company is actively exploring the opportunity to purchase additional land in
Shenzhen, the PRC, to further expand its manufacturing facilities.
Looking into the third quarter of 2005, we are confident that stable growth
momentum and a gross profit margin of over 12% will be maintained. The Company
is pleased to give its projection for the third quarter of 2005 based on market
information and current order situation as follows:
(In millions of US Dollars, except for earnings per share)
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3Q 2005 3Q 2004 3Q 2005 2Q 2005 3Q 2005
(Estimated) (Actual) (Estimated) (Actual) (Estimated)
vs. vs.
3Q 2004 2Q 2005
(Actual) (Actual)
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Sales $170-$180 $138 23%-30% $185 (8)%-(3)%
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Income from Operations per Share (diluted)(a)(b) $0.30-$0.32 $0.30 0%-7% $0.33 (9)%-(3)%
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Pro-forma Earnings per Share (diluted)(a)(b)(c) $0.24-$0.27 $0.24 0%-13% $0.28 (14)%-(4)%
- ----------------------------------------------------------------------------------------------------------------------------------
Note:
(a) The income from operations and pro-forma earnings per share estimate and
comparison figures for prior periods exclude any one-time income or expense
items.
(b) The diluted earnings per share will be affected by the fluctuation in the
total number of outstanding shares.
(c) The pro-forma earnings per share estimate is calculated with a current
minority interest of approximately 27.9% of NTEEP and approximately 28.4% in
JIC. Minority interest may fluctuate within and between quarters.
Investment in TCL Communication
- -------------------------------
Due to the share swap between TCL Communication and Alcatel on July 18, 2005,
the shareholding of Nam Tai in TCL Communication decreased from 9% to 8.57%.
In light of the performance of the share price of TCL Communication, the Company
considered it a prudent approach to record the unrealized loss of its investment
in TCL Communication pursuant to the guidance from Emerging Issue Task Force
03-1 issued by the Financial Accounting Standard Board. Accordingly, based on
the share price of TCL Communication as at June 30, 2005, an unrealized loss of
$6.5 million was recorded in Nam Tai's income statement for the second quarter
of 2005. Such unrealized loss has no impact on Nam Tai's cash position.
Compliance with Sarbanes-Oxley Act
- ----------------------------------
The Company is working towards full compliance with the relevant sections of the
Sarbanes-Oxley Act as scheduled.
Supplementary Information (Unaudited) for the Second Quarter of 2005
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1. Quarterly Sales Breakdown
(In Thousands of US Dollars)
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Quarter 2005 2004 YoY(%) YoY(%)
(Quarterly) (Quarterly accumulated)
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1st Quarter 156,923 95,435 64.4 64.4
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2nd Quarter 185,277 147,664 25.5 40.8
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3rd Quarter 137,986
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4th Quarter 152,776
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Total 342,200 533,861
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Page 3 of 10
2. Net Sales Breakdown by Product Segment
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2005 2004
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Segment 2nd Quarter YTD 2nd Quarter YTD
(%) (%) (%) (%)
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Consumer Electronics and
Communication Products(a)(e) 21% 24% 32% 31%
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Telecom. Components Assembly:
- Telecom. Components Assembly(b) 70% 67% 59% 58%
- Software Development Services(c)(e) 0% 1% 1% 1%
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Parts & Components:
- LCD Panels(d) 9% 8% 8% 10%
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100% 100% 100% 100%
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Note:
(a) Represents the sales of NTEEP
(b) Represents the sales of Zastron Precision-Tech Limited.
(c) Represents the sales of Namtek Software Development Company Limited
("Namtek").
(d) Represents the sales of JIC.
(e) Namtek was injected into NTEEP on May 17, 2005 and became a 100% wholly
owned subsidiary of NTEEP. Sales in relation to Software Development
Services of Namtek was therefore included in Consumer Electronics and
Communication Products from the second quarter of 2005.
3. Key Highlight of Financial Position
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(unaudited) (audited)
As at June 30 As at December 31
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2005 2004 2004
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Cash on Hand $155.0 million $121.4 million $160.6 million
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Marketable Securities $26.4 million -- $41.9 million
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Cash/Current Liabilities 1.39 1.05 1.38
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Current Ratio 2.78 2.44 2.87
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Total Assets/Total Liabilities 3.81 4.18 3.79
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Debtors Turnover 50 days 86 days 62 days
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Inventory Turnover 16 days 34 days 18 days
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Average Payable Period 44 days 79 days 72 days
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With $12.3 million of net cash provided by operating activities in the second
quarter of 2005, the Company continues to maintain a strong financial position
even after the payment of quarterly dividends of $16.4 million during the second
quarter of 2005. Moreover, the Company's other financial ratios remain healthy.
Second Quarter Results Analyst Conference Call
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The Company will hold a conference call on Monday, August 1, 2005 at 10:00 a.m.
Eastern Time for analysts to discuss the second quarter results with management.
Shareholders, media, and interested investors are invited to listen to the live
conference over the internet by going to www.namtai.com and clicking on the
conference call link (under events) or over the phone by dialing (612) 332-0932
just prior to its start time.
Dividends
- ---------
The record date for the third quarter dividend of $0.33 per share is September
30, 2005 and the payment date is October 21, 2005.
Page 4 of 10
About Nam Tai Electronics, Inc.
- -------------------------------
We are an electronics manufacturing and design services provider to a select
group of the world's leading OEMs of telecommunications and consumer electronic
products. Through our electronics manufacturing services operations, we
manufacture electronic components and sub-assemblies, including LCD panels, LCD
modules, RF modules, FPC sub-assemblies and image sensors modules. These
components are used in numerous electronic products, including cellular phones,
laptop computers, digital cameras, copiers, fax machines, electronic toys,
handheld video game devices and microwave ovens. We also manufacture finished
products, including cellular phones, palm-sized PCs, personal digital
assistants, electronic dictionaries, calculators, digital camera accessories and
BluetoothTM wireless headset accessory for use with cellular phones.
Nam Tai has two Hong Kong listed subsidiaries, Nam Tai Electronic & Electrical
Products Limited ("NTEEP") and J.I.C. Technology Company Limited ("JIC") and
their Second Quarter Results were announced earlier today in Hong Kong.
Interested investors may go to the website of The Stock Exchange of Hong Kong
Limited at www.hkex.com.hk to obtain the information. The stock codes of NTEEP
and JIC on The Stock Exchange of Hong Kong Limited are 2633 and 987,
respectively. Investors are reminded to exercise caution when assessing such
information and not to deal with the shares of the Company based solely on
reliance of such information. The results of NTEEP and JIC only represent a part
of the results of the Company and there are GAAP differences in the financial
statements of NTEEP and JIC when compared with the financial statements of the
Company. Furthermore, different subsidiaries of the Company may have different
peak seasons during a year.
Forward-Looking Statements
- --------------------------
Certain statements in this press release are "forward-looking statements" within
the meaning of U.S. federal securities laws. Nam Tai intends that these
statements be covered by the safe harbors created under these laws. These
forward-looking statements are, by their nature, subject to risks, uncertainties
and other factors that could cause the actual results to differ materially from
future results expressed or implied by the forward-looking statements. These
forward-looking statements include, without limitation, statements relating to
the Company's projected sales projected income from operations per share
(diluted) and projected pro-forma earnings per share (diluted) for the third
quarter of 2005, and the ability of the Company to finance investments and
business expansions through internal resources in the foreseeable future. These
forward-looking statements reflect our current views with respect to future
events and are not a guarantee of our future performance. There are important
factors that could cause the actual results to differ materially from the
information set forth in these forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on the
forward-looking statements which only speak as of the date of this press
release. Because of these risks, uncertainties and assumptions, the
forward-looking events and circumstances discussed in this news release might
not occur the way we expect, or at all. Nam Tai does not undertake any
obligation to release publicly any revisions to these forward-looking statements
to reflect events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events, except as may be required under
applicable securities laws. These factors include, without limitation, lower
than expected sales in the third quarter of 2005, unexpected changes to the
Company's cash position, general economic, market and business conditions and
other factors beyond the Company's control.
Page 5 of 10
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
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FOR THE PERIODS ENDED JUNE 30, 2005 AND 2004
(In Thousands of US Dollars except share data)
Unaudited Unaudited
Three months ended Six months ended
June 30 June 30
2005 2004 2005 2004
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Net sales - related parties $ 1,038 $ 11,594 $ 6,143 $ 19,329
Net sales - third parties 184,239 136,070 336,057 223,770
-------------------------------------------------------------------
Total net sales 185,277 147,664 342,200 243,099
Cost of sales 161,442 125,389 299,948 206,528
-------------------------------------------------------------------
Gross profit 23,835 22,275 42,252 36,571
Costs and expenses
Selling, general and administrative expenses 7,838 7,603 15,040 13,926
Research and development expenses 1,675 1,257 3,156 2,299
-------------------------------------------------------------------
9,513 8,860 18,196 16,225
-------------------------------------------------------------------
Income from operations 14,322 13,415 24,056 20,346
Other income (expenses) - net (1,797) 779 (2,294) 1,943
Gain on partial disposal of subsidiaries 1,930 71,071 7,800 71,071
Unrealized loss on marketable securities (6,525) -- (6,525) --
Interest income 787 173 1,460 248
Interest expense (102) (30) (184) (51)
-------------------------------------------------------------------
Income before income taxes and minority interests 8,615 85,408 24,313 93,557
Income taxes (196) (311) (337) (589)
-------------------------------------------------------------------
Income before minority interests and equity 8,419 85,097 23,976 92,968
in (loss) income of an affiliated company
Minority interests (2,280) (2,104) (4,031) (2,680)
-------------------------------------------------------------------
Income after minority interests 6,139 82,993 19,945 90,288
Equity in (loss) income of an affiliated company (142) 34 (142) 126
-------------------------------------------------------------------
Net income $ 5,997 $ 83,027 $ 19,803 $ 90,414
===================================================================
Net income per share
Basic $ 0.14 $ 1.93 $ 0.46 $ 2.14
===================================================================
Diluted $ 0.14 $ 1.92 $ 0.46 $ 2.14
===================================================================
Weighted average number of shares ('000')
Basic 42,736 43,100 42,706 42,165
Diluted 42,988 43,141 42,943 42,217
Page 6 of 10
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
- ------------------------------------------------------------------------------------------------
AS AT JUNE 30, 2005 AND DECEMBER 31, 2004
(In Thousands of US Dollars)
Unaudited Audited
June 30, December 31,
2005 2004
- ------------------------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 155,045 $ 160,649
Marketable securities 26,381 41,906
Accounts receivable, net 93,990 90,362
Amount due from a related party -- 66
Inventories 25,676 23,096
Prepaid expenses and other receivables 2,476 12,087
Income taxes recoverable 7,937 6,566
-----------------------------------
Total current assets 311,505 334,732
Investment in affiliated companies 2,907 3,049
Property, plant and equipment, at cost 176,217 158,147
Less: accumulated depreciation and amortization (68,051) (60,706)
-----------------------------------
108,166 97,441
Deposits for property, plant and equipment 1,869 7,701
Intangible assets 17,522 16,290
Other assets 1,260 1,260
-----------------------------------
Total assets $ 443,229 $ 460,473
===================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 3,939 $ 2,080
Long term bank loan - current portion 3,075 2,875
Accounts payable 72,755 89,570
Accrued expenses and other payables 17,738 16,661
Amount due to a related party 159 --
Dividend payable 14,104 5,120
Income taxes payable 165 183
-----------------------------------
Total current liabilities 111,935 116,489
Long-term bank loan - non-current portion 4,275 5,163
-----------------------------------
Total liabilities 116,210 121,652
Minority interests 36,108 33,768
Shareholders' equity:
Common shares 427 426
Additional paid-in capital 242,757 241,756
Retained earnings 47,922 56,324
Accumulated other comprehensive (loss) income (Note 1) (195) 6,547
-----------------------------------
Total shareholders' equity 290,911 305,053
Total liabilities and shareholders' equity $ 443,229 $ 460,473
===================================
Page 7 of 10
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
- -------------------------------------------------------------------------------------------------------------------------
FOR THE PERIODS ENDED JUNE 30, 2005 AND 2004
(In Thousands of US Dollars)
Unaudited Unaudited
Three months ended Six months ended
June 30 June 30
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,997 $ 83,027 $ 19,803 $ 90,414
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization of property, 4,248 3,425 8,092 6,705
plant and equipment
Amortization of intangible assets 23 24 46 47
Net loss (gain) on disposal of property, plant 59 (79) 30 (48)
and equipment
Gain on partial disposal of subsidiaries (1,930) (71,071) (7,800) (71,071)
Unrealized loss on marketable securities 6,525 -- 6,525 --
Equity in (loss) income of an affiliated company 142 (34) 142 (126)
Minority interests 2,280 2,104 4,031 2,680
Changes in current assets and liabilities, net of effects
of acquisition and disposal:
Increase in accounts receivable (290) (52,599) (3,628) (45,306)
Decrease in amount due from a related party -- 1,477 66 1,022
Increase in inventories (4,132) (5,575) (2,580) (11,579)
Decrease (increase) in prepaid expenses and other 383 (209) (608) 1,380
receivables
Increase in income taxes recoverable (813) (1,152) (1,371) (1,322)
Increase in notes payable 781 6,323 1,859 5,291
(Decrease) increase in accounts payable (2,547) 27,336 (16,815) 28,105
Increase in accrued expenses and other payables 2,593 4,627 605 1,764
(Decrease) increase in amount due to a related party (957) -- 159 --
(Decrease) increase in income taxes payable (6) 74 (18) 289
-----------------------------------------------------------
Total adjustments 6,359 (85,329) (11,265) (82,169)
-----------------------------------------------------------
-----------------------------------------------------------
Net cash provided by (used in) operating activities $ 12,356 $ (2,302) $ 8,538 $ 8,245
-----------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of long term investment $ -- $ (25,073) $ -- $ (25,084)
Purchase of property, plant and equipment (7,542) (7,258) (18,870) (12,865)
Deposit for purchase of property, plant & equipment 2,788 (2,863) 5,832 (3,562)
Proceeds from disposal of property, plant and equipment 10 2,989 48 3,010
Proceeds from partial disposal of subsidiaries 92,767 20,055 92,767
-----------------------------------------------------------
Net cash (used in) provided by investing activities $ (4,744) $ 60,562 $ 7,065 $ 54,266
-----------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid $ (16,401) $ (5,199) $ (21,521) $ (7,665)
Repayment of bank loans (769) (281) (1,488) (563)
Proceeds from bank loans -- 5,200 800 5,200
Proceeds from shares issued on exercise of options 57 72 1,002 72
-----------------------------------------------------------
Net cash used in financing activities $ (17,113) $ (208) $ (21,207) $ (2,956)
-----------------------------------------------------------
Net (decrease) increase in cash and cash equivalents (9,501) 58,052 (5,604) 59,555
Cash and cash equivalents at beginning of period 164,546 63,330 160,649 61,827
-----------------------------------------------------------
Cash and cash equivalents at end of period $ 155,045 $ 121,382 $ 155,045 $ 121,382
===========================================================
Page 8 of 10
NAM TAI ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
FOR THE PERIODS ENDED JUNE 30, 2005 AND 2004
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments and unrealized loss on marketable securities. The
comprehensive income of the Company was $19,610 (including an unrealized
loss on marketable securities of US$193 in relation to TCL Corporation) and
$90,414 for the six months ended June 30, 2005 and June 30, 2004
respectively.
2. Business segment information - The Company operates primarily in three
segments, the Consumer Electronics and Communication Products ("CECP")
segment, Telecom. Components Assembly ("TCA") segment, and the LCD Panels
("LCDP") segment.
Unaudited Unaudited
Three months ended Six months ended
June 30 June 30
2005 2004 2005 2004
- --------------------------------------------------------------------------------
NET SALES:
- CECP $ 39,668 $ 47,316 $ 81,696 $ 74,794
- TCA 129,905 87,722 232,527 144,593
- LCDP 15,704 12,626 27,977 23,712
--------------------------------------------------------
Total net sales $185,277 $147,664 $342,200 $243,099
========================================================
NET INCOME:
- CECP $ 4,665 $ 6,392 $ 8,547 $ 9,631
- TCA 221 75,985 9,536 79,448
- LCDP 1,111 650 1,720 1,335
--------------------------------------------------------
Total net income $ 5,997 $ 83,027 $ 19,803 $ 90,414
========================================================
Unaudited Audited
June 30, Dec. 31,
2005 2004
- --------------------------------------------------------------------------------
IDENTIFIABLE ASSETS BY SEGMENT:
- CECP $134,615 $134,473
- TCA 251,949 274,664
- LCDP 56,665 51,336
---------------------------
Total assets $443,229 $460,473
===========================
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3. A summary of the net sales, net income and long-lived assets by geographic
areas is as follows:
Unaudited Unaudited
Three months ended Six months ended
June 30 June 30
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------
NET SALES FROM OPERATIONS WITHIN:
- Hong Kong and Macao:
Unaffiliated customers $ 15,704 $ 12,626 $ 27,977 $ 23,712
Inter-companies sales 240 140 426 246
- PRC, excluding Hong Kong and Macao:
Unaffiliated customers 169,573 123,444 314,223 200,058
Related party -- 11,594 -- 19,329
Inter-companies sales 1,038 1,711 6,143 4,393
- Inter-companies eliminations (1,278) (1,851) (6,569) (4,639)
------------------------------------------------------------------
Total net sales $ 185,277 $ 147,664 $ 342,200 $ 243,099
==================================================================
NET INCOME WITHIN:
- PRC, excluding Hong Kong and Macao $ 9,152 $ 10,010 $ 14,175 $ 16,398
- Macao 8,757 5,429 14,271 5,687
- Hong Kong (11,192) 67,588 (8,643) 68,329
------------------------------------------------------------------
Total net income $ 5,997 $ 83,027 $ 19,803 $ 90,414
==================================================================
Unaudited Audited
June 30, Dec. 31,
2005 2004
- --------------------------------------------------------------------------------
LONG-LIVED ASSETS WITHIN:
- PRC, excluding Hong Kong and Macao $ 95,610 $ 84,453
- Macao 117 134
- Hong Kong 12,439 12,854
-------------------------------
Total long-lived assets $ 108,166 $ 97,441
===============================
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