"With the optimistic industry outlook, Datapulse is in a position to exploit the growing demand for both DVD-ROM and DVD-recordable."
 

The Roadmap Ahead

We are constantly reassessing our strategic directions to retain our position as one of the leading total solutions providers in the digital storage industry. We have put in place several initiatives, which include continual investments in the latest technology, expansion into new products, expansion of our customer base regionally and updating our business model. These initiatives help to propel our growth and allow us to maximise the benefits from the expected global economic recovery.

Continual Investments In The Latest Technology

As the demand for DVD from the gaming, personal computer and movie industry is expected to increase significantly, we are implementing a plan to boost our production capacity considerably. The total investment in DVD related products will reach $24.0 million by the end of the financial year 2004.

The additional production lines will allow us to better meet the needs of our customers for multiple formats and to reap maximum benefits from strong demand growth.

Expansion Into New Products

Riding on the popularity of hard disk-equipped DVD recorders and the trend of more personal computer manufacturers adopting DVD-recordable drives in their products, the global market for DVD-recordable products is going to take off in a big way. Many market research firms have unanimously agreed that DVD-recordable, which has a higher storage capacity, is expected to eventually replace the current generation of CD-recordable and CD-rewritable products.

The profit margin for DVD-recordable is expected to be more attractive due to its novelty and higher storage capacity. In view of this new business opportunity, the Group plans to invest in new DVD-recordable lines during the year as part of our overall drive to raise total DVD related investment.

 

 
Expansion Of Our Customer Base Regionally

Given the strategic locations of our Singapore operation covering markets in Southeast Asia and Australia, and Taiwan operation covering markets in North Asia, we are well positioned to expand our customer base regionally and seize the opportunities prevailing in the Asia Pacific region.

We have mapped out a detailed marketing strategy to better serve the existing customers and to attract new ones in the Asia Pacific region.

Updating Our Business Model

With the business environment getting keenly competitive and cost of production in Singapore becoming higher relative to countries with lower operating costs such as China, transforming ourselves from plain manufacturing to providing higher value-added activities is of paramount importance and this effort has been ongoing.

We proactively make our business model relevant by keeping tabs on the changing pulse of our market space and keeping abreast of the technology advancement not just within our industry but also beyond. Changes could be perceived as an opportunity for us to reinvent ourselves to provide values to our customers on a higher plane. We have extended our value chain to provide our new and existing customers with integrated services ranging from pre-mastering to mastering, replication, printing, packing and distribution. Reaffirming our position as a provider of total solutions in the digital storage industry, we intend to commit our resources to further enhance our capabilities in this area to add value to our customers.

 
 




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