Uchitec Q&A

对于宇琦科技盈利不断下滑的情况，已经有股东在今年的五月股东大会表达对于这方面的忧虑。（更多的详情可以从www.uchi.net 取得。）


以下是管理层对有关问题的书面回答：




(i) What are the key strategies to sustain the operating profit margin for 2013?



(i) In consideration of the unfavourable economic climate and the challenges that we
encounter in the current year, at this moment, we anticipate revenue growth for the year
ending 2013 is likely to remain flat and operating profit margin shall be squeezed by a
lower single digit percentage. Nevertheless, the Group is confident that we will remain
profitable and maintain a strong balance sheet.

The key strategies undertaken by the Board to address these challenges include enhancing
technical innovations capabilities, cost improvement measures and foreign currency
management:

(a) We still believe R&D is our reason of existence and shall remain focus on our R&D’s
innovation to provide customers with:

- fit solutions that will enable our customers to be the first to launch new products with
new features; and

- better cost efficient and equal performance/better performance solutions. This is
crucial because we believe during economic downturn, companies will actively look
for cost efficient solutions in a way to moderate the increasing operating cost.
We believe these are the 2 main factors to retain existing customers and attract new
customers or new project from existing customers.

   (b) In an effort to further improve cost efficiency, the following actions have been in
placed:

(aa) UCHItecture is equipped amongst others, with the followings in order to enhance
operational efficiency and quality improvement:

- QA reliability test room to enhance the quality of our products;
- Super-market style Logistic flow to improve capital management efficiency
- customizable production line arrangement to provide flexibility in handling

various customer request in production

- state-of-the art facilities i.e. vertical machine center, in-house designed tailored
testing jigs, high resolution scopes, customised electrical and mechanical
laboratory to enhance efficiency in meeting customers' demands.


bb) our R&D team are actively involved in product re-engineering where we
endeavour to apply common components in our design. This will reduce the
storage and logistic cost of components.

(cc) New Logistic Concept is executed in order to improve production efficiency.
Under the New Logistic Concept, small orders are combined for manufacturing.

(dd) Vendor Management Inventory system where some vendors agree to keep
material at their premises. In return, we assure them of long term purchase.

(ee) Safety Buffer Stocks system where we shall keep safety stocks for long lead time
component in order to secure smooth operations.

(c) we recognised the impact of weakening US Dollar against the bottom line. Therefore,
we endeavour to enter into forward contract to sell forward US Dollar at a rate not
less than the exchange rate we use for product costing. Other than this, there are
natural hedge of around 30% of the revenue against purchases in US Dollar.



(ii) Does the board foresee an increase in global market demand in the near future?


(ii) Based on the customers forecast and order placed to-date, we anticipate that the revenue
growth for the year ending 2013 is likely to remain flat.


Pertaining to the trend of global market demand, we are not the expertise in global
economic and therefore are not in a position to comment.







对于未来的展望，以及业绩会否改善、扭转目前的颓势，有赖于管理层的智慧了。


请看以下的书面回答：


The Group has announced that it has more than 30 new projects in the R&D pipeline that are
scheduled to be launched in 2013 & 2014. With approximately 80% of the Group's revenue
contributed by high-end consumer appliances such as fully automated coffee machines, could
the Board explain if the projects in the pipeline would see the Group move into a new market
segment?

A2     The 30 over projects in the R&D pipeline mainly consist of control modules for fully automatic
coffee machines and high precision weighing scales, which form the main contributor to the
Group’s revenue.

Apart from the above, there are also new products, which are currently in its initial stage of
basic research and development. Bonded by the Confidentiality Clause in our Agreement with
the customer, we are restricted to disclose any information at this moment to any third parties
until the projects are launched.

However, the Board is aware of its responsibility to ensure informative, timely and accurate
disclosure of material information concerning the Company to the public and shall make
necessary announcement when necessary.



        行业总是有起有伏，业绩总不可能只起不落，每个领域总有其荣景及萧条。

        如果问及宇琦科技我个人的看法，其实很简单，四个字 “ 安全边际 ” 。这关系到价格是否便宜，价值是否被低估，公司是否有特别之处，回酬是否丰厚。除此之外，必须配合个人的对投资的需要，投资的策略，以减低投资的风险，提高获利层度。
Copy from 火树银花

I think u have to give some time for this company as they r doing a lot of stuff for the growth of the company.