Summary of 2005 Interim Results:
-Net profit and Earnings per share up 125% and 126% respectively
- Total turnover grew by 60% mainly attributable to the strong handset demand growth in the China market
- Overall gross margin percentage increased to 18.6% as compared to16.8% in 1H 2004 mainly due to the significant increase in the sale of complete mobile handsets and handset design solutions as well as high-performance multimedia mobile handsets
-Earnings per share was HK$0.97, an increase of 126%
-Net cash generated from operations at HK$131million
- Management is optimistic about the business outlook in 2H2005 as a result of planned more new product launches, broadened customer bases and continuous growth in the China handset market and strong demand for high-performance multimedia handsets
SIM Technology Group Limited has announced robust turnover and profit growth for the first half of 2005.
For the six months ended 30 June 2005, the Company recorded a turnover of HK$927 million, versus HK$579 million in 2004, a growth of 60% over the same period last year, primarily due to the strong handset demand growth in the China market.
The Company also achieved net profit of HK$110 million, versus HK$49 million in 2004, representing a growth of 125% over the same period last year. The basic earnings per share were HK$0.97, representing a 126% increase over the HK$0.43 for the first half of 2004.
The gross profit for the first half of 2005 increased 76% to HK$172 million, compared with HK$98 million for the same period of 2004. The gross profit margin for the first half of 2005 increased to 18.6% versus 16.8% for the same period of 2004, due mainly to the significant increase in the sale of mid- and high-end complete mobile handsets and handset design solutions as well as multimedia mobile handsets. The Company's Board of Directors intended to target dividend payout of 35% at year end subject to various factors and final discretion of the Board.
