FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For News Releases of:
November 12, 2002;
November 11, 2002;
November 5, 2002;
November 4, 2002;
October 28, 2002;
October 22, 2002;
October 21, 2002;
October 15, 2002
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
15th Floor, China Merchants Tower, Shun Tak Centre
168-200 Connaught Road Central, Hong Kong
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Posts Record Sales in October
VANCOUVER, CANADA November 12, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced it achieved a
new all time monthly sales record of $26.35 million in October 2002, a 31.3%
increase over sales of $20.07 million for October 2001. Strong sales of mobile
phone LCD modules and digital cameras for mobile phones contributed to the
overall growth. In its third quarter 2002 results released on October 28, 2002
Nam Tai announced that its backlog, defined as on-hand firm orders from
customers, was up 42% at the end of the third quarter 2002 compared to the end
of the second quarter of 2002.
"We are pleased with October's sales which demonstrates the Company's ability to
grow even in today's challenging market conditions," commented Mr. Tadao
Murakami, Nam Tai's Chairman. "October 2001 sales of $20.07 include $2.78
million in sales from BPC, a discontinued business. Excluding this amount, sales
in October 2002 actually increased 52.4%."
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and radio frequency modules, both for mobile phones, transformers
and LCD panels. The Company utilizes advanced production technologies such as
chip on board (COB), chip on glass (COG), chip on film (COF), surface mount
technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer
lead bonding (OLB) technologies. Further information is available on Nam Tai's
web site at www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Starts New Business Manufacturing Color LCD Modules for Mobile Phones
VANCOUVER, CANADA November 11, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced it has
received new orders to produce color LCD modules for mobile phones.
"Mobile phones with color displays is the global trend," said Mr. Tadao
Murakami, Chairman of Nam Tai. "It is anticipated that more and more leading
mobile phone manufacturers will switch from monochrome displays to color
displays in 2003. Nam Tai is proud to continue upgrading its technology to
successfully participate in this global trend which is expected to strengthen
our competitive position in the mobile phone components manufacturing industry.
Nam Tai is dedicated to becoming the preferred supplier of components for
leading manufacturers of mobile phones."
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and radio frequency modules, both for mobile phones, transformers
and LCD panels. The Company utilizes advanced production technologies such as
chip on board (COB), chip on glass (COG), chip on film (COF), surface mount
technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer
lead bonding (OLB) technologies. Further information is available on Nam Tai's
web site at www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the statement
regarding Nam Tai's competitive position is a forward looking statement
dependant upon many factors including introduction of new technologies by
competitors and end user demand for color screen mobile phones. Other factors
that might cause differences in these and the other forward looking statements,
include those discussed in the Company's reports filed with the Securities and
Exchange Commission from time to time, such as the factors set forth in Item 3
"Key Information - Risk Factors" in the Company's Annual Report on Form 20-F for
the year ended December 31, 2001.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Clarifies Recent Rule 144 Filings
VANCOUVER, CANADA November 5, 2002 -- Nam Tai Electronics, Inc., ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today
announced that recent Rule 144 filings filed on behalf of its Chairman, Mr.
Tadao Murakami, and its Chief Financial Officer, Ming Kown Koo by their broker
relates to a sale of shares which was made without their instructions. As a
result of a mistaken understanding by the broker 42,250 shares were sold in
error for the accounts of Mr. Murakami and Mr. Koo respectively. Both Mr.
Murakami and Mr. Koo had recently opened accounts with the broker but neither
Mr. Murakami nor Mr. Koo provided the broker with any selling instructions and
are requesting that the transactions be reversed.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
$1.00 Per Share Special Dividend Announced
VANCOUVER, CANADA November 4, 2002 - Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today announced
a special dividend of $1.00 per common share. The special dividend will be paid
on December 6, 2002 to shareholders of record at the close of business on
November 29, 2002.
As a result of the gain from the legal case and the gain from the investment in
Huizhou TCL Mobile Communication Limited, which added over $13 million to the
balance sheet of the Company, the Board of Directors is pleased to announce that
it has decided to declare a special dividend of $1.00 per share to benefit the
shareholders following its usual practice in respect of extraordinary income.
Regular Quarterly Dividend
In addition to today's announcement of a special dividend of $1.00 per share,
the Company will pay the regular fourth quarter dividend of $0.12 per share to
shareholders of record at the close of business on December 31, 2002 with a
payment date of January 21, 2003.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Q3 Net Income Up 63%, $6.1 Million ($0.57 per Share) vs. $3.7 Million ($0.36 per
Share), EBITDA per Share $0.92 vs. $0.64
VANCOUVER, CANADA October 28, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) announced
unaudited results for the third quarter ended September 30, 2002.
Net sales for the third quarter of 2002 was $56.9 million, a decrease of 4.5%
compared to net sales of $59.6 million for the third quarter of 2001. Gross
profit for the third quarter of 2002 was $8.2 million, a decrease of 10.1%
compared to gross profit of $9.1 million for the third quarter of 2001.
Operating income for the third quarter of 2002 was $3.3 million ($0.31 per
share) an increase of 2.5% compared to operating income of $3.2 million ($0.31
per share) for the third quarter of 2001. Net income for the third quarter of
2002 was $6.1 million an increase of 63% compared to net income of $3.7 million
in the third quarter of 2001. Basic and diluted earnings per share for the third
quarter of 2002 were $0.58 and $0.57 compared to earnings per share of $0.36 and
$0.36 in the third quarter of 2001. EBITDA for the third quarter of 2002 was
$9.7 million ($0.92 per share) compared to EBITDA of $6.6 million ($0.64 per
share) for the third quarter of 2001. Gain from investment in Huizhou TCL Mobile
Communication Limited was not included in the third quarter of 2002.
Net sales for the nine months ended September 30, 2002 decreased by 3.9% to
$160.4 million from $166.9 million for the first nine months of 2001. Gross
profit for the first nine months of 2002 was $27.9 million, an increase of 52.9%
compared to gross profit of $18.2 million for the first nine months of 2001.
Operating income for the first nine months of 2002 was $13.4 million (gain of
$1.27 per share) compared to operating loss of $1.1 million (loss of $0.11 per
share) for the first nine months of 2001. Net income for the first nine months
of 2002 was $15.5 million an increase of 40 times compared to net income of $0.4
million for the first nine months of 2001. Basic and diluted earnings per share
for the first nine months of 2002 were $1.49 and $1.47 compared to earnings per
share of $0.04 and $0.04 for the first nine months of 2001. EBITDA for the nine
months ended September 30, 2002 was $25.2 million ($2.38 per share) compared to
EBITDA of $9.8 million ($0.94 per share) for the first nine months of 2001.
Following the decision from the High Court of Justice in the British Virgin
Islands awarding the Company general damages of $34 million, the Company has
successfully recovered $3.5 million which was recorded as other income during
the third quarter of 2002. With respect to the balance of the damages, the
Company will follow up with relevant legal proceedings, however, the result is
uncertain. Should there be any amount recovered, it will be recorded as other
income accordingly. Moreover, the gain from the disposal of part of the
investment in Huizhou TCL Mobile Communication Limited at a consideration of
$10.45 million will be recorded as other income in the fourth quarter of 2002
conditional upon the completion of the transaction.
"Nam Tai's mission is to keep a specific focus on communication products and
their key components. The Company has been continually upgrading relevant
technologies. With the commencement of production of radio frequency ("RF")
modules for mobile phones towards the end of 2002, the Company is one further
step ahead in its mission. The strong earnings and continuous growth despite the
economic downturn and the challenging market conditions validate the Company's
strategy," commented Mr. Tadao Murakami, Nam Tai's Chairman. "Sales for the
first nine months of 2002 actually increased slightly by 1.7% after excluding
sales from the disposed low margin battery packs business. Looking forward, with
a 42% increase in the backlog at the end of third quarter of 2002 as compared to
second quarter of 2002, we expect that 2003 will be a prosperous year for Nam
Tai."
The Company continues to maintain a strong financial position, ending the third
quarter of 2002, with $6.3 million positive operating cash flow, $5.53 of cash
per share and approximately $17.20 of net book value per share, based on
10,396,513 shares outstanding compared with 10,486,940 shares outstanding as at
September 30, 2001. The Company as at September 30, 2002, had a cash to current
liabilities ratio of 1.35, a current ratio of 2.75, a total assets to total
liabilities ratio of 4.15 and $57.5 million of cash.
Supplementary Information for the Third Quarter of 2002
1. Quarterly Sales Breakdown
(In Thousands of US Dollars)
-----------------------------------------------------------------------------------
Quarter 2000 2001 2002 YoY (%) YoY (%) notes
-----------------------------------------------------------------------------------
(Accumulated)
-----------------------------------------------------------------------------------
1st Quarter 44,592 51,487 51,217 (0.5%) (0.5%)
-----------------------------------------------------------------------------------
2nd Quarter 50,540 55,882 52,311 (6.4%) (3.6%) (a)
-----------------------------------------------------------------------------------
3rd Quarter 57,249 59,551 56,872 (4.5%) (3.9%) (a)
-----------------------------------------------------------------------------------
4th Quarter 61,307 67,086
-----------------------------------------------------------------------------------
Total 213,688 234,006 160,400
-----------------------------------------------------------------------------------
Note (a):
Sales of battery packs for May and June 2001 were US$1,181K & 1,648K
respectively and US$6,425K in the third quarter of 2001. Upon disposal of
BPC on April 30, 2002, revenue from battery packs was no longer included in
the total sales for the months of May, June 2002 & third quarter of 2002.
2. Net Sales Breakdown by Product Segment
----------------------------------------------------------------------------------
2002 2001
----------------------------------------------------------------------------------
Segment 3rd Quarter YTD 3rd Quarter YTD
(%) (%) (%) (%)
----------------------------------------------------------------------------------
Assembling:
- LCD Consumer Products 42% 38% 29% 32%
- Telecom. Components Assembly 37% 45% 53% 50%
----------------------------------------------------------------------------------
Parts & Components :
- LCD Panels 14% 11% 13% 11%
- Transformers 6% 5% 4% 6%
----------------------------------------------------------------------------------
Software Development Services 1% 1% 1% 1%
----------------------------------------------------------------------------------
100% 100% 100% 100%
----------------------------------------------------------------------------------
Assembling included finished goods and modules, together with Software
Development Services collectively termed as Consumer Electronic Products
("CEP"), while parts and components including LCD panels and transformer
termed ("LPT") for business segment classification.
3. Production Capacity Utilization Rate
The utilization rate for third quarter of 2002 was as follows:
Assembling 56%
Parts & Components 69%
Software Development 100%
4. Average Selling Price (ASP)
ASP for third quarter of 2002 was 6% lower than second quarter of 2002 and
5% higher than third quarter of 2001.
5. Backlog
The Company's definition of backlog is on-hand firm orders from customer as
at the closing date of each quarter. The backlog for third quarter of 2002
was 42% higher than second quarter of 2002.
6. Analytical Data
9/2002 9/2001
Debt Capacity
Total Debt/Capitalization 9.12% 0.00%
Long-term Debt / Capitalization 7.43% 0.00%
Total Debt/ Equity 9.85% 0.00%
Net Debt / Equity 0.00% 0.00%
Long-term Debt / Equity 8.03% 0.00%
Total Liabilities / Equity 31.96% 26.92%
Coverage
Net Interest Coverage 2934.52% 6300.00%
Total Debt / EBIT 101.56% 0.00%
Interest Expense / Total Debt 3.36% 0.00%
Short-term Debt Coverage 531.18% 0.00%
Profitability
ROI 7.52% 0.24%
EBT Margin 10.44% 0.30%
Return on Sales 10.81% 0.30%
EBT / Total Assets 7.07% 0.24%
Return on Capital 15.26% 0.46%
SG&A Expense /Revenue 7.79% 10.22%
Cash Flow
Funds from Operations / Total Debt 151.21% 0.00%
Funds from Operations / Net Interest 4506.77% 115175.00%
Turnover
Receivable Turnover 67 days 70 days
Inventory Turnover 35 days 32 days
Third Quarter Results Analyst Conference Call
The Company will hold a conference call on Monday, October 28, 2002 at 10:00
a.m. Eastern Time for analysts to discuss the third quarter results with
management. Shareholders, investors and other interested individuals are invited
to listen to the live conference call over the internet by going to
http://www.namtai.com/news/news.htm and clicking on the conference call link or
over the phone by dialing (612) 288-0337 just prior to its start time. Callers
will be asked to register with the conference call operator.
Dividends
On October 21, 2002 the Company paid a quarterly dividend of $0.12 per share to
shareholders of record at the close of business on September 30, 2002. The
record date for the fourth quarter dividend of $0.12 per share is December 31,
2002 and the payment date is January 21, 2003.
Special Dividends
It is the Company's usual practice to reward our shareholders by declaring
special dividends in respect of extraordinary income other than income from
normal operations. As a result of the gain from the legal case and the gain from
the investment in Huizhou TCL Mobile Communication Limited, the Company is
considering to declare special dividends subject to the approval by the Board of
Directors and the Extraordinary General Meeting of TCL International Holdings
Limited to be held on October 31, 2002. Details of the special dividends will be
announced by November 4, 2002.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
Except for the historical information contained herein, matters discussed in
this press release are forward-looking statements. For example, the Company's
forward guidance for 2003 profitability is dependant upon many factors including
the level of overall growth of the mobile phone market, end-user demand,
competitive pressures, changes in general economic conditions, and currency
fluctuations. Other factors that might cause differences in this and the other
forward looking statements, include, but are not limited to, those discussed in
the Company's reports filed with the Securities and Exchange Commission from
time to time, such as the factors set forth in Item 3 "Key Information - Risk
Factors" in the Company's Annual Report on Form 20-F for the year ended December
31, 2001.
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
(In Thousands of US Dollars except share data)
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2002 2001 2002 2001
------------------------------------------------ ----------- ----------- ----------- -----------
Net sales $ 56,872 $ 59,551 $ 160,400 $ 166,920
Cost of sales 48,673 50,433 132,514 148,680
----------- ----------- ----------- -----------
Gross profit 8,199 9,118 27,886 18,240
Costs and expenses
Selling, general and administrative expenses 4,277 5,200 12,502 17,067
Research and development expenses 617 694 1,945 2,266
----------- ----------- ----------- -----------
4,894 5,894 14,447 19,333
----------- ----------- ----------- -----------
Income (loss) from operations 3,305 3,224 13,439 (1,093)
Gain on disposal of land - - - 18
Interest income 222 259 558 982
Other income (loss) - net 3,160 (191) 844 (155)
Equity in income of affiliated companies - 464 2,104 768
----------- ----------- ----------- -----------
Income before income taxes and minority interest 6,687 3,756 16,945 520
Income taxes expenses (598) (1) (1,215) (116)
----------- ----------- ----------- -----------
Income before minority interest 6,089 3,755 15,730 404
Minority interest (35) (41) (193) (24)
----------- ----------- ----------- -----------
Net income $ 6,054 $ 3,714 $ 15,537 $ 380
=========== =========== =========== ===========
Net income per share
Basic $ 0.58 $ 0.36 $ 1.49 $ 0.04
=========== =========== =========== ===========
Diluted $ 0.57 $ 0.36 $ 1.47 $ 0.04
=========== =========== =========== ===========
Weighted average number of shares (`000')
Basic 10,474 10,197 10,407 10,208
Diluted 10,549 10,314 10,577 10,333
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(In Thousands of US Dollars)
Unaudited Audited
September 30 December 31
2002 2001
-----------------------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 57,522 $ 58,676
Marketable securities - 9,505
Accounts receivable, net 39,436 41,968
Inventories 16,899 11,892
Prepaid expenses and deposits 1,825 2,377
Income taxes recoverable 1,585 1,353
-----------------------------------
Total current assets 117,267 125,771
Investments in affiliated companies 5,524 3,921
Long term investment 11,968 -
Property, plant and equipment, at cost 120,205 105,536
Less: accumulated depreciation and amortization (41,744) (35,122)
-----------------------------------
78,461 70,414
Intangible assets - net 22,325 23,060
Other assets 1,407 1,407
-----------------------------------
Total assets $ 236,952 $ 224,573
===================================
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Notes payable $ 318 $ 1,547
Long term bank loan - current portion 3,265 2,140
Accounts payable and accrued expenses 37,080 34,258
Amount due to a related party - 2,733
Dividend payable 1,247 1,023
Income taxes payable 740 88
-----------------------------------
Total current liabilities 42,650 41,789
Long-term bank loan - non-current portion 14,349 12,860
Deferred income taxes 151 151
-----------------------------------
Total liabilities 57,150 54,800
Minority interest 1,012 422
Shareholders' equity:
Common shares 104 104
Additional paid-in capital 115,685 111,368
Retained earnings 63,003 57,864
Accumulated other comprehensive (loss) income (Note 1) (2) 15
-----------------------------------
Total shareholders' equity 178,790 169,351
Total liabilities and shareholders' equity $ 236,952 $ 224,573
===================================
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
(In Thousands of US Dollars)
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2002 2001 2002 2001
------------------------------------------------------------ ------------ ----------- ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 6,054 $ 3,714 $ 15,537 $ 380
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 2,818 2,904 7,882 9,260
Loss on disposal of property, plant and equipment 90 67 205 133
Dividend withheld (394) - (394) -
Share redemption (3,125) - (3,125) -
Gain on disposal of intangible assets - - (60) -
Unrealised loss on marketable securities - - - 437
Gain on disposal of a subsidiary - - (17) -
Loss on partial disposal of subsidiaries - - 1,172 -
Equity in income of affiliated company less dividend - (464) (2,072) (768)
received and amortisation of goodwill amortization
Loss on partial disposal of investment in affiliated - - 469 -
company
Minority interest 35 41 193 24
Changes in current assets and liabilities, net of effects
of acquisitions and disposals:
Decrease in marketable securities - - 9,505 -
Decrease (increase) in accounts receivable 3,234 (269) 2,977 (5,048)
(Increase) decrease in inventories (3,165) (17) (5,324) 9,894
Decrease (increase) in prepaid expenses and deposits 371 1,077 538 (3,844)
Decrease (increase) in income taxes recoverable 414 (41) (232) 878
Increase (decrease) in notes payable 34 17 (1,229) (1,477)
(Decrease) increase in accounts payable and accrued (276) 2,269 2,724 (1,644)
expenses
Repayment of capital leases - - - (65)
Increase (decrease) in amount due to a related party - 1,400 (2,766) 1,313
Increase (decrease) in income taxes payable 158 (20) 652 (259)
------------ ----------- ------------ -----------
Total adjustments 194 6,964 11,098 8,834
------------ ----------- ------------ -----------
Net cash provided by operating activities $ 6,248 $ 10,678 $ 26,635 $ 9,214
------------ ----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of long term investment $ - $ - $ (11,968) $ -
Purchase of property, plant and equipment (3,605) (4,074) (17,035) (27,675)
Increase in investment of subsidiaries (437) - (437) (85)
Cash inflow on disposal of a subsidiary 2,131 - 854 -
Proceeds from disposal of intangible assets - - 800 -
Proceeds from disposal of property, plant and 153 4 168 283
equipment
------------ ----------- ------------ -----------
Net cash used in investing activities $ (1,758) $ (4,070) $ (27,618) $ (27,477)
------------ ----------- ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Share buy-back program $ - $ - $ (3,528) $ (1,892)
Dividends paid (1,306) (1,002) (3,542) (2,915)
Repayment of bank loan (816) - (1,886) -
Repayment of short term debt - - - (24)
Proceeds from shares issued on exercise of options - 3,075 4,311 4,306
and warrants
Proceeds from bank loan - - 4,500 -
------------ ----------- ------------ -----------
Net cash (used in) provided by financing activities $ (2,122) $ 2,073 $ (145) $ (525)
------------ ----------- ------------ -----------
Foreign currency translation adjustments - 1 (26) -
------------ ----------- ------------ -----------
Net increase (decrease) in cash and cash equivalents 2,368 8,682 (1,154) (18,788)
------------ ----------- ------------ -----------
Cash and cash equivalents at beginning of period 55,154 31,426 58,676 58,896
------------ ----------- ------------ -----------
Cash and cash equivalents at end of period $ 57,522 $ 40,108 $ 57,522 $ 40,108
============ =========== ============ ===========
NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
FOR THE PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income of the Company was
$15,520 and $398 for the nine months ended September 30, 2002 and September
30, 2001, respectively.
2. Business segment information - The Company operates primarily in two
segments, the consumer electronic product ("CEP") segment and the LCD
panels and transformers ("LPT") segment.
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2002 2001 2002 2001
----------------------------------- --------------- --------------- --------------- --------------
Net SALES:
- CEP $ 45,513 $ 49,723 $ 134,715 $ 139,729
- LPT 11,359 9,828 25,685 27,191
--------------- --------------- --------------- --------------
Total net sales $ 56,872 $ 59,551 $ 160,400 $ 166,920
=============== =============== =============== ==============
NET Income (loss) from OPERATIONS:
- CEP $ 5,539 3,171 $ 13,745 $ (1,741)
- LPT 515 543 1,792 2,121
--------------- --------------- --------------- --------------
Total net income $ 6,054 $ 3,714 $ 15,537 $ 380
=============== =============== =============== ==============
Unaudited Audited
Sept. 30, 2002 Dec. 31, 2001
------------------------------------------------------------------- -- --------------- ---------------
Identifiable assets by SEGMENT:
- CEP $ 185,910 $ 188,262
- LPT 51,042 36,311
--------------- ---------------
Total assets $ 236,952 $ 224,573
=============== ===============
3. A summary of the net sales, income from operations and identifiable assets
by geographic areas is as follows:
Unaudited Unaudited
Three months ended Nine months ended
September 30 September 30
2002 2001 2002 2001
------------------------------------------ --------------- --------------- --------------- --------------
Net sales from operations within:
- Hong Kong:
Unaffiliated customers 55,623 50,754 149,039 149,319
Intersegment sales 2 - 926 -
- PRC, excluding Hong Kong:
Affiliated customers - 6,425 7,849 13,153
Unaffiliated customers 1,249 2,372 3,512 4,448
Intersegment sales 41,163 38,472 116,430 114,712
- Intersegment eliminations (41,165) (38,472) (117,356) (114,712)
--------------- --------------- --------------- --------------
Total net sales $ 56,872 $ 59,551 $ 160,400 $ 166,920
=============== =============== =============== ==============
NET Income (loss) from operations within:
- PRC, excluding Hong Kong $ 1,845 $ 2,740 $ 11,266 $ (169)
- Hong Kong 4,209 974 4,271 549
--------------- --------------- --------------- --------------
Total net income $ 6,054 $ 3,714 $ 15,537 $ 380
=============== =============== =============== ==============
Unaudited Audited
Sept. 30, 2002 Dec. 31, 2001
------------------------------------------ --------------- --------------- -- --------------- ---------------
Identifiable assets by geographic area:
- PRC, excluding Hong Kong $ 87,875 $ 60,866
- Hong Kong 149,077 163,707
--------------- ---------------
Total assets $ 236,952 $ 224,573
=============== ===============
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
TCL Classic Golf Tournament
VANCOUVER, CANADA October 22, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) announced that Nam Tai is one
of the major sponsors of the TCL Classic Golf Tournament 2002 to be held from
November 14, 2002 to November 17, 2002, at Harbour Plaza Golf Club, Dongguan,
Guangdong, The People's Republic of China. TCL Corporation is the title sponsor
and the other co-sponsors include Epson, Philips, China Agriculture Bank and
Wavecom. The prize money for the TCL Classic Golf Tournament is $1 million and
leading star golfers like John Daly and Colin Montgomerie will be competing in
the tournament. It is intended that the TCL Classic Golf Tournament develops
into Asia's premier golf tournament.
The tournament will receive extensive media coverage, including live television
broadcast on CNBC Asia and Europe. "Nam Tai is pleased to have the opportunity
to sponsor the TCL Classic Golf Tournament with other leading manufacturers and
EMS providers in the manufacturing of mobile phones and components", said Mr.
Tadao Murakami, Nam Tai's Chairman. "Nam Tai manufactures LCD modules, a key
component for mobile phones, and has started a new line of business
manufacturing radio frequency, or RF, modules, also a key component for mobile
phones. The sponsorship of the TCL Classic Golf Tournament definitely marks a
closer association between Nam Tai and the mobile phone industry."
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Reminder of Warrant Expiration Date
VANCOUVER, CANADA October 21, 2002 -- Nam Tai Electronics, Inc., ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today
reminded Warrant holders that its Warrants expire on November 24, 2002 at 5:00
p.m. Eastern Time. Each Warrant is exercisable to purchase one Common Share of
Nam Tai at a price of $20.40 per share.
The Warrants may be exercised before 5:00 p.m. Eastern Time on November 24, 2002
by presenting the Warrant certificate with the duly executed Purchase Form and
simultaneous payment of the Warrant Price of $20.40 per share to the Warrant
Agent, U.S. Stock Transfer Corporation at 1745 Gardena Avenue, Second Floor,
Glendale, California, 91304, USA. Payment of the Warrant Price must be paid in
full in cash, by certified check or bank draft payable in United States
currency. Warrants not exercised before 5:00 p.m. Eastern Time on November 24,
2002 shall become void. Public trading of Warrants on the NASDAQ will cease
after the close of trading on Friday, November 22, 2002.
As of September 30, 2002 there were 3,053,659 Warrants outstanding. The Warrants
are traded on the NASDAQ National Market under the ticker symbol NTAIW.
Third Quarter Results Conference Call
The Company will hold a conference call on Monday, October 28, 2002 @ 10:00 a.m.
Eastern Time for analysts to discuss the third quarter results with management.
Analysts who wish to receive the toll free dial-in number for this conference
call are invited to contact the Investor Relations Office at 1-800-661-8831 no
later than 6:00 p.m. Eastern Time on Friday, October 25, 2002. Shareholders,
media, and interested investors are invited to listen to the live conference
call by dialing (612) 288-0337 or on the internet at
http://www.namtai.com/news/news.htm.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Completes New Factory Premises
VANCOUVER, CANADA October 15, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) announced the final completion
of construction work of its new factory premises and that the newly constructed
5-storey factory premises were handed over to Nam Tai by the construction
company with government approval completion certificate. The new factory
premises add approximately 138,000 square feet of production facilities to Nam
Tai representing an increase of approximately 28% of manufacturing capacity.
Together with the existing manufacturing capacity of approximately 488,000
square feet, Nam Tai's manufacturing capacity, all based in China, is increased
to approximately 626,000 square feet.
The new factory premises have two floors of class 1,000 clean room facilities,
one floor for assembling facilities, one floor for office and the ground floor
for warehouse. Currently, Nam Tai has only one floor of class 10,000 clean room
facilities at its existing factory premises. The new facilities will definitely
further strengthen the production capability of Nam Tai to produce more high end
products. The added clean room facilities will be used for Nam Tai's new
business of manufacturing of RF modules and to expand its existing business of
manufacturing LCD modules.
Nam Tai is installing new production equipment into the new factory premises and
estimates $20 million will be expended as capital investment within the next six
months. The new production lines are expected to be operational in March 2003.
Nam Tai is confident that with the new production facilities it should be able
to further diversify its lines of business and to explore different business
opportunities.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules and RF modules both for mobile phones, transformers and LCD panels.
The Company utilizes advanced production technologies such as chip on board
(COB), chip on glass (COG), chip on film (COF), surface mount technology (SMT),
ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding
(OLB) technologies. Further information is available on Nam Tai's web site at
www.namtai.com.
The Registrant hereby incorporates this Report on Form 6-K into its Registration
Statements on Form F-3 (Registration Nos. 333-36135 and 333-58468).
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
Undersigned thereunto duly authorized.
For and on behalf of
Nam Tai Electronics, Inc.
/s/ MING KOWN KOO
-----------------------
MING KOWN KOO
CHIEF FINANCIAL OFFICER
Date: November 13, 2002