CMS business again delivered good results in the financial year 2006, with a second record year of revenue, which rose by 23.2% over the financial year 2005 to US$158.2 million, representing 13.1% of Group revenue, up from 12.6% in the previous financial year.

The solid performance in part reflects the positive state of the overall electronic manufacturing services (EMS) market, which expanded by approximately 10% in the calendar year 2005. The rise in revenue was, however, also driven by increased orders from existing customers in all segments, as well as new accounts, including those for LED lighting systems and handheld wireless audio-visual devices for use on site at sports events.

Europe continued to be the largest market of the CMS business, accounting for 47.1% of the total CMS revenue, followed by the United States at 29.5% and Asia Pacific at 23.4%. By product category, switching mode power supplies and professional audio equipment accounted for 28.9% and 29.9% of the total CMS revenue respectively, followed by home appliances at 16.1% and wireless products at 7.8%.

The business has retained its focus on small and medium sized customers to which it provides a highly flexible and reliable service that runs from product design to full production. During the financial year 2006, the business was successful in improving its cost structure, enabling it to maintain stable margins. A new organizational structure was also introduced with the aim of tightening customer relationships.

The global EMS industry is forecast to remain on an uptrend and the CMS business is expected to grow with the industry. The Group is taking great care to manage growth at this business, devoting considerable effort to maintaining the exceptional levels of quality and service which are fundamental to its success. The R&D service offered to CMS customers is expected to drive further growth for the business.