Shenzhen SEG Samsung Glass: 2005 net down 85%

Shenzhen SEG Samsung Glass Co. Ltd said its 2005 audited net profit was down 85.26% year-on-year at CNY 40.46 million because of escalating production costs.
The company, in which Samsung Corning Inv…

Shenzhen SEG Samsung Glass Co. Ltd said its 2005 audited net profit was down 85.26% year-on-year at CNY 40.46 million because of escalating production costs. The company, in which Samsung Corning Investment Co. Ltd., a unit of Samsung Corning Co. Ltd., holds a 21.37 % stake, said its earnings per share were CNY 0.05 in 2005 against CNY 0.35 a year earlier. Core revenue was CNY 2.07 billion in 2005, compared with CNY 1.7 billion a year earlier. Shenzhen SEG Samsung said high oil prices had pushed up production costs for its core products which include cathode-ray tubes (CRT) and flat panel displays. Falling demand for CRTs as consumers switch to flat panel displays also contributed to lower profits, it added. The company said it will produce 17 million displays and 15 million CRTs in 2006. No revenue or profit targets were given. Shenzhen SEG Samsung plans to enter the high-end flat panel display market in 2006 by investing USD 27.6 million in a project to produce STN-ITO glass, a component in flat panel displays. STN-ITO glass is widely used in mobile phone and game console displays.