HKC's mobile phone sales spurred by 'individual visit' tourism policy
New 'Circle' flagship store opens
Followed by plans to expand Mainland and overseas markets
10 September 2003
HKC International Holdings Limited (Stock code: 248) agreed in today's Annual General Meeting to distribute a final dividend of HK$0.01 per share. Shareholders are offered an option to take new shares at HK$0.165 per share in lieu of all or part of their dividends. As at 31 March 2003, the Group recorded a turnover of HK$821,000,000, a 13% increase compared with the previous year. Net profit was HK$10,971,000 and earnings per share was HK$0.0253.

HKC Chairman and CEO, Mr. Hubert Chan, says the series of policies put in place by Beijing in support of Hong Kong's economy have created an atmosphere for the economy's revival. The new tourism policy allowing individual visits to the territory, in particular, is a direct force in boosting Hong Kong's tourism and retail industries. The Group's mainstream mobile phone distribution and retail business soared since the introduction of the policy. With the Group's huge local distribution and retail network, Mr. Chan expects the economic benefits will be reflected in their coming year's results. Whilst leveraging the opportunities in the reviving Hong Kong market, HKC is also actively expanding its telecommunications products and services markets overseas and on the Mainland.

Mr. Chan says, "HKC will continue to concentrate on developing telecommunications products and services. We shall diversify our products, services and markets in line with the economic trends, to maximize customer and shareholder value." He adds, the Group has been closely following the development trend of an export-oriented economy, which results in the recent opening of its largest 'Circle' store in Goldjoy Shopping Paradise on Canton Road, Tsim Sha Tsui, targeting primarily the tourist market. This flagship retail store sells branded mobile phones and related accessories and a wide range of digital cameras, DVD players, MP3, MD players and CD players etc., which reflects the Group's 'Digital Mobility' concept. To date, the Group has established 18 'Circle' chain stores in Hong Kong and two "Nokia Professional Centre", the Group's mobile phone distribution business covers over 400 retail stores and chain store operators. Its office telephone business has more than 6,000 clients, putting the Group in an extremely advantageous position.

The Group's Mainland China business also has new development. Mr. Chan says, the Group had, in the said period, established in Shanghai an 80% owned joint venture company, ASCT Technology Company Limited ("ASCT"), which is principally engaged in systems integration and the sales of telecommunication systems and other high-tech products. The Group's wholly-owned subsidiary in Shanghai, HKC Technology (Shanghai) Co., Ltd., is now specialising in selling office telephone systems. Mr. Chan stresses, " With China's robust economy, more multinational corporations are setting up offices there. This, plus the continuous liberalisation of the Mainland's telecommunications' market, has induced the Group to speedup the expansion of product sales and services on the Mainland. Throughout these years, we have accumulated ample amount of experience in systems integration and a strong clientele. We shall use our subsidiaries on the Mainland as our bases and take the pioneering opportunity to further expand our mainland market. Our new joint venture company "ASCT" has already been appointed as the SMATV system contractor of "Formula One Shanghai International Circuit". The project is regarded as important project of Shanghai in the year 2003, and marks a milestone of the Group's business development on the Mainland. "

Overseas, the Group has also obtained significant achievements. The HKC has set up a wholly-owned subsidiary, HKC International (Thailand) Limited, responsible for distributing mobile phones and other telecommunications products in Thailand. Mr. Chan explains, Thailand is one of the earliest revived economies after the Asian economic turmoil. Annual turnover of mobile phones in the country reaches US$ 764,332,000, representing an annual growth of 45 %. He believes Thailand's vibrant economic growth will offer great opportunities for the Group's mobile phone business. Besides, the Group plans to build up international sales network. Recently, its self-developed 5.8G wireless PABX will soon be launched in United States.

About HKC International Holdings Limited
Founded in 1970, the Group is principally engaged in the sale and distribution of branded mobile phones and related accessories, office telephone systems in Hong Kong, China, Singapore and Thailand. It also provides its clients with mobile phone network connection, maintenance and systems integration services.