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Hi-tech Manufacturing
In 2007, the turnover of hi-tech manufacturing was HK$1,655,785,000,
representing an increase of 9.92% as compared with last year. Its profit
decreased by 1.49% to HK$161,365,000 as compared with last year. The Group’s
hi-tech manufacturing business, with main products comprising plastic
injection, intelligent chargers, liquid crystal display and printed circuit
boards, had maintained a steady growth through improved client portfolio,
continuous technology improvement and enhanced internal control. Among
which, plastic products, intelligent chargers and liquid crystal display
achieved relatively satisfactory results, with turnover increased by 11.58%,
10.73% and 8.69% respectively as compared with last year. Affected by
the fierce market competition and the impacts of soaring costs of labor, raw
materials and energy, the profit margin of the hi-tech manufacturing
business had slightly decreased but still could maintain a rather good
return on equity of 21.23%.
The Group’s
new factory extension in Huizhou Industrial Park Phase III was completed in
the first half of 2007 and has already been in use, providing a new factory
area of approximately 45,000 m2. The new factory area is expected to provide
the hi-tech manufacturing business with further capacity for future growth.
Science and Technology Park
Complex Development
With the support of China Aerospace Science & Technology Corporation (“CASC”),
the Group is dedicated to the business of the science and technology park
complex development in recent years. After entering into the agreement with
Shanghai Minhang District Municipal Government in 2006 to establish the
Shanghai Aerospace Technology Investment Management Company Limited
(“Shanghai Aerospace”) for the development, construction, management and
operation of the Shanghai Aerospace Technology Industrial Park, the Group
also set up a joint venture company with the subsidiaries of CASC in
Shenzhen during the year to jointly develop the “Shenzhen Aerospace
Technology Building”.
In 2007, Shanghai Aerospace
Technology Industrial Park was recognised by the National Development and
Reform Commission as a “State Civilian Aerospace Industry Base of Shanghai”,
the construction of the Park was thus taken a great leap forward. The Park
will comprise different research, production and operation facilities.
Meanwhile, centering on the State’s mid and long term aerospace development
strategy, the Park will focus on the two major areas of developing civilian
aerospace industry and aerospace technology applications so as to form a
group of emerging civilian aerospace high-tech applications industry
sectors. At the moment, the Park is speeding up its process of the
construction and the move in of a number of admitted enterprises.
In 2007,
CASC and Shenzhen People’s Municipal Government have commenced strategic
cooperation. One of the major cooperation projects is for CASC to develop
the “Shenzhen Aerospace Technology Building” in Shenzhen to serve as an
autonomous and innovative aerospace technology transformation platform and
the operating headquarter of CASC in southern China for being the research
and development centre of aerospace technology applications, centre of
international economic and technology cooperations, and operational and
management centre.
The Company
sought the opportunity of this strategic alliance plan and, after due
consideration, decided that CASIL New Century Technology Development
(Shenzhen) Company Limited (“New Century”), a whollyowned subsidiary of the
Company, entered into a cooperation agreement in November 2007 with
Aerospace Technology Investment Holdings Limited (“ATI”) and Shenzhen
Science & Technology Institute (“STI”), both are subsidiaries of CASC. Under
which, Shenzhen Aerospace Hi-Tech Investment Management Company Limited
(“Shenzhen Aerospace”) was established for the construction, operation and
management of the “Shenzhen Aerospace Technology Building”. This joint
venture project received the support and approval of independent
shareholders at the extraordinary general meeting held in January 2008. The
registered capital of Shenzhen Aerospace is RMB700,000,000, in which New
Century, ATI and STI holds 60%, 20% and 20% interest respectively.
Given that
the prosperous development of property market in Shenzhen in recent years
and the keen demand in high quality offices, it is anticipated that the
Company would have favourable returns from the investment of the “Shenzhen
Aerospace Technology Building”. The establishment of Shenzhen Aerospace will
further strengthen the development of science and technology park complex of
the Company, as well as the Group’s property investment portfolio. In the
long run, the planning and coordination of different projects in relation to
research and development of aerospace technologies, as well as the
introduction of related industries in entering the “Shenzhen Aerospace
Technology Building” will provide the Group with investment opportunities in
hi-tech projects.
The business
registration of Shenzhen Aerospace had been completed at the end of January
2008 and Shenzhen Aerospace forthwith started to study and identify the site
for the future location of “Shenzhen Aerospace Technology Building” and
prepare for the preliminary work of public tender. On 14 March 2008,
Shenzhen Aerospace won the bid for the land use right of a parcel of
commercial office usage land of 10,458.44 m2 located at the northern
reclamation district of the east of Nanshan Houhai Centre District, Shenzhen
through public tender at a consideration of RMB495 million (approximately
HK$538 million).
Nanshan
District is a newly developed high-tech industrial hub and financial
district of Shenzhen. According to Shenzhen Municipal Government’s plan in
the central commercial and cultural district of Nanshan, Nanshan will be
developed into a modern city centre, comprising financial, business,
commercial service and public facilities. The “Shenzhen Aerospace Technology
Building” will be situated at the prime commercial area of Nanshan Houhai
Central District. With the inauguration of the Shenzhen Bay Bridge in July
2007, it is expected that the development of Nanshan District will be
accelerated and will become an important link between Guangdong Province and
Hong Kong, the largest border checkpoint of the world as well as an
international commercial and cultural hub and tourist spot for both Shenzhen
and Hong Kong.
Other Major Events
|According to the arrangement under the Assets Swap Agreement entered into
between the Group and CASC in 2006, the Group acquired all the equity
interests of Dongguan Huadun Enterprises Limited (“Dongguan Huadun”). Upon
completion of the acquisition, Dongguan Huadun successively disposed of its
lands and properties to independent parties. Majority of the relevant
transaction was completed in 2007 and resulted in a profit of HK$28,849,000.
To cope with
the future development, in June 2007, the Company raised approximately
HK$386,000,000 by way of Open Offer of 428,483,980 Offer Shares at a price
of HK$0.90 per Offer Share on the basis of one Offer Share for every five
Shares held. The Open Offer was well received and supported by shareholders,
it succeeded in strengthening the Company’s financial position and allowed
all shareholders to share an equal opportunity to increase their investment
in the Company and participate in the Company’s future development. |
