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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.
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