IT distribution channels posted shinning performances in 2004

Taipei, Jan. 25, 2005 (CENS)--Thanks to their efforts to expand operating outposts to boost market shares, domestic distributors of information technology products mostly registered an annual growth of between 10% and 30% in sales last year.

Of domestic IT distributors, Synnex Technology International Corp., listing on the Taiwan Stock Exchange, ranked first by posting NT$134.4 billion (US$4.22 billion at US$1:NT$31.8) in combined sales last year, up 24% year-on-year. Unitech Electronics Co., another listed IT distributor, saw its sales reach NT$12.64 billion (US$397.48 million) last year, up 21.6% from the previous year.

Synnex said it posted NT$12.36 billion (US$388.67 million) in combined sales in December last year, hitting the second-highest record. The company noted it has made great achievement in managing overseas markets, which will become its major growth source in the next few years.

Unitech said it registered NT$1.32 billion (US$41.5 million) in sales in December last year, hitting a historic high record. The company noted it would be able to grab NT$1.5 (US$0.04) in pretax earnings per share last year, meeting its financial projection earlier made.

Tsann Kuen Enterprise Co., Ltd., which owns largest 3C (consumer electronics, computers, communications) chains in Taiwan, had combined sales of 52.6 billion (US$1.65 billion) last year, up 37.6% from the previous year.

Despite the substantial growth in combined sales, the company has cut the number of outposts in mainland to 31 at the end of last year from the past 50. Tsann Kuen 3C China managing director Yang Wen-feng said his company would pursue the sales growth and profitability of each outpost in the mainland, especially in greater Shanghai and Fujian province.

E-Life Mall Corporation, listed on the Emerging Market, posted NT$113.8 billion (US$3.57 billion) in sales last year, representing a year-on-year growth of 34.4%. Pretax earnings reached NT$460 million (US$14.46 million), or NT$4.7 (US$0.14) in earnings per share, last year. The company noted it would increase the number of 3C shops to 270 in the foreseeable future from present 248.

Sunfar Computer Inc. were busy with expansion of outposts in Taiwan last year. Currently the company has more than 30 3C shops around the island. The company posted approximately NT$7 billion (US$220.12 million) last year, reaching 87% of its financial goal.

Genuine C&C Corp. boasted NT$12 billion (US$377.35 million) in sales last year. Xander International Inc. saw sales break the NT$10 billion (US$314.46 million) mark last year for the first time ever, but it has recently downward adjust profit projection because of the slump in price of inventories, saying it would encounter loss last year.