REVIEW OF OPERATIONS AND PROSPECTS
The Grande Holdings Limited
For the year 2006, profit attributable to shareholders was HK$360 million as compared to
HK$302 million for the year 2005.
The total turnover was HK$9,312 million for the year as compared to HK$6,038 million for
2005. The gross profit from operating activities was HK$1,013 million as compared to HK$817
million for 2005.
The core business segments of the Group comprise The Branded Distribution Group and The
Electronics Manufacturing Services Group. The Branded Distribution Group will continue to be
the major contributor to turnover and profit for the Group representing 72% of consolidated
turnover in 2006 as compared to 61% in 2005.
THE BRANDED DISTRIBUTION GROUP
The Branded Distribution Group’s turnover for 2006 was HK$6,734 million as compared to
HK$3,707 million for 2005. With severe pricing pressure in global markets, the Group decided
tactically to withdraw from the development and production of conventional audio and video
products and to outsource these products to other qualified suppliers. The Group has instead
focused on the development, production and sale of digital flat panel display products such as
Plasma TV and LCD TV. During 2006, the Group successfully developed and launched a series
of Plasma TV with screen size ranging from 42" to 63" and LCD TV from 26" to 52".
In addition to the Group’s existing portfolio of Nakamichi, Akai and Sansui brands, the Group
acquired in December 2005 a 37% equity interest in Emerson Radio Corp. (“Emerson”), a
company listed on the American Stock Exchange of the United States of America. Subsequent
to that date the Group increased its shareholding in Emerson to approximately 51% through
the purchase of stock in the open market. With the acquisition, the Group has assumed the
management of the distribution and the licensing of the Emerson brand.
Nakamichi continues to be the Group’s flagship premium brand focusing on top end lifestyle
entertainment products. Riding on th