The Group's revenue and loss attributable to shareholders for the three months ended June 30, 2010 were HK $650.2 million (S $114.3 million) and HK $6.6 million (S $1.2 million), respectively. Compared to the corresponding quarter of the last financial year, revenue was HK $435.3 million (S $76.5 million) and loss attributable to shareholders was HK $16.4 million (S $2.9 million). Loss per share for the quarter was 2.5 HK cents (0.44 Singapore cents) as compared to 6.2 HK cents (1.09 Singapore cents) for the corresponding quarter last year. Net assets per share remained at HK $2.85 (S $0.50) as at June 30, 2010 and March 31, 2010. 

The increase in revenue was mainly derived from the LED lighting business. Gross profit margin was 9.9% for the quarter under review, as compared to 12.7% for the corresponding quarter last year. The margin was lower as a result of a higher level of turnkey business as compared to the consigned component assembly business, as well as higher material prices, wages and energy costs.

During the first half of 2010, the company faced a continuing rise in manufacturing costs in China.  

Revenue contribution by products was as follows:

Capital investment for the three months ended June 30, 2010 was HK $6.3 million (S $1.1 million) of which HK $3.0 million (S $0.5 million) was for the enhancement of production equipment, HK $3.0 million (S $0.5 million) for plant and facilities and HK $0.3 million (S $0.1 million) for computer and other equipment. No new SMT lines were installed in Q1FY2011. The total number of SMT lines remained at 152 on June 30, 2010. 

There were signs of a slowdown in the global economic recovery by the end of June 2010.  The rebound in market demand in Q1 2010 was due to the replenishment of the much depleted supply chain. The European sovereign debt crisis is still lingering. The sustaining high unemployment, cautious consumer confidence and other external factors, such as the tightening of fiscal policy of European countries, point to a slow recovery process. There are concerns of further economic slow down in Q3 2010 which may extend into Q4 2010. The economic outlook as the company enters the second half of 2010 is less certain.

China's GDP growth slowed down in Q2 2010. This was in line with the Central Government's action to prevent the economy from overheating.