Ten Pao Group: One-stop Manufacturer of Switching Power Supply Units and Major Supplier of Many International Brands

Nov 27, 2015 14:46 JST

Source: Ten Pao Group Holdings Limited

HONG KONG, Nov 27, 2015 - (ACN Newswire) - Ten Pao Group Holdings Limited ("Ten Pao" or "the Group") is a leading one-stop manufacturer of switching power supply units in the PRC. Its clienteles include many leading and fast growing international brands. Ten Pao is equipped with strong R&D capabilities and is one of the few manufacturers that have its own CNAS- accredited testing laboratory, which enables it to transform with the change of the technology market while it develops and produces diversified products catering to the specifications of clients' new products. The rapid revolution of the power tools, and the successive launch of new models of telecommunications equipment such as smartphones, in addition to the rapid growth of the market of electronic cigarettes, have all driven the demand of switching power supply units.

Founded in 1979, the Group has more than 30 years of experience in the switching power supply industry and is mainly engaged in the manufacturing and sales of switching power supply units for consumer products and smart chargers and controllers for industrial use. Its vertically integrated production model extends from research and development, product design, procurement of raw materials, production, quality control, sales and delivery to provision of after-sales services, offering a convenient one-stop service to its customers.

Ten Pao continuously upgrades its technologies and provides a diversified range of products to meet market demand. Its production bases are located in Huizhou, Guangdong province and Hanzhong, Shaanxi province, the PRC. As at 30 June 2015, the Group offered more than 1,400 types of switching power supply units for consumer products which can be deployed in telecommunications equipment, media and entertainment equipment, electronic cigarettes and home electrical appliances. The Group also has more than 300 types of smart chargers and controllers that can be applied in different power tools for industrial use. It continues to launch new cutting-edge high-tech products such as wireless chargers, ultra-fast chargers, LED products and technologies, etc.

The Group boasts strong research and development capabilities. As a manufacturer which emphasizes safety, the Group understands the importance of safety, reliability and durability in power supplies and so it has set up a research and development centre as well as a testing laboratory. In 2008, the Group's testing laboratory satisfied the CNAS accreditation criteria in the competence of testing and calibration laboratories (equivalent to ISO/IEC 17025:2005), making the Group one of the few power supply manufacturers inGuangdong province with a CNAS-accredited testing laboratory. The test reports issued by its CNAS-accredited laboratory are recognised by more than 80 accreditation bodies from approximately 70 countries, including the PRC, the United States and most countries in the European Union. Thus, the Group can conduct its own safety and energy-efficiency testing, which can reduce the time-to-market for products, lower operating costs and enhance competitiveness on one hand, and meet customers' requirements of safety and reliability in products on the other hand.

Ten Pao has a diverse customer base and has built a good relationship with renowned brands. Its products have been exported to more than 10 countries and regions including the European Union, the United States and South Korea through its worldwide sales network. At the same time, it has built a good business relationship with a number of world-renowned brands including Fortune 500 companies such as professional power tools manufacturer BOSCH Group; Guang Dong OPPO Mobile Telecommunications Corp., Ltd (OPPO Group), a rising mobile phone brand; and leading communication technology brand TCL Group, Flextronics Group and Stanley Black & Decker, Inc.

The switching power supply unit manufacturing industry in the PRC has registered healthy growth and a positive industry prospect. During the period from 2010 to 2014, the total sales value of switching power supply units manufactured in the PRC rose at a CAGR of approximately 10.4% from approximately RMB93.9 billion in 2010 to approximately RMB139.5 billion in 2014. The growth drivers of the switching power supply unit industry include the wide application in staple products used in daily life and work, and the continuous upgrade of electronics products and entertainment equipment creating new demand for the power supply industry. Safety standards and energy-efficiency requirements have been leading the development of the switching power supply unit manufacturing industry and provide momentum to industry and technology development. Growth of the smart home devices market is also expected to stimulate demand for switching power supply units and bring new opportunities to the switching power supply unit manufacturing industry.

The Group enjoys a healthy financial position with satisfactory past results. Annual revenue increased from HK$1.422 billion in 2012 to the HK$2 billion threshold, reaching HK$1.931 billion, in 2014. The CAGR in these three years was 16.5%. If compared in terms of the first-half of the last two years, revenue increased from HK$883 million in the first half of 2014 to about HK$944 million in the first half of this year. Gross profit and net profit have recorded stable growth in the past three years. Gross profit margin increased from 14.3% in 2012 to 17.2% in 2014. It was 15.7% in the first half of 2015. Adjusted net profit margin also increased from 2.1% in 2012 to 5.2% in 2014, and remained at 5.2% in the first half of 2015. For the third quarter of 2015, the Group's financial performance has recorded a strong growth. Revenue and gross profit were approximately HK$662.0 million and HK$133 million, respectively, representing a YoY increase of approximately 18.1% and 21.8% respectively.

In the future, Ten Pao Group will expand the production scale at its existing manufacturing bases; increasing automation in production and installing new automated machinery and equipment to bolster the Group's designed production capacity. The Group will strengthen its sales and marketing efforts and expanding the customer base in the PRC and internationally on one hand, and strengthen its research and development capabilities on the other. The Group also plans to pursue strategic expansion opportunities overseas, in order to enhance its position as one of the major switching power supply unit manufacturers in the PRC.

For media enquiries, please contact:

Strategic Financial Relations Limited
Joanne Lam Tel: (852) 2864 4816 Email: joanne.lam@sprg.com.hk
Cecilia Shum Tel: (852) 2864 4890 Email: cecilia.shum@sprg.com.hk
Caley Chan Tel: (852) 2114 4950 Email: caley.chan@sprg.com.hk
Fax: 2804 2789 / 2527 1196

Important Statement:
This summary of highlights is for reference only. The document may contain selective and incomplete information. Readers should obtain proper, accurate and complete information from the online version uploaded on the website of the Hong Kong Stock Exchange by Ten Pao Group Holdings Limited.

Source: Ten Pao Group Holdings Limited
Sectors: Daily Finance, Daily News