-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KvupPupW6qpql20XluFuKP+ZhG2bq4n8JAhQoap9vx6Q3158ZiX0KsHpuZ7wRDc3 OxoHrOO2ScY4OxbMZcJhQQ== 0000829365-99-000007.txt : 19990818 0000829365-99-000007.hdr.sgml : 19990818 ACCESSION NUMBER: 0000829365-99-000007 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990816 FILED AS OF DATE: 19990817 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAM TAI ELECTRONICS INC CENTRAL INDEX KEY: 0000829365 STANDARD INDUSTRIAL CLASSIFICATION: OFFICE MACHINES, NEC [3579] IRS NUMBER: 000000000 STATE OF INCORPORATION: D8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-16673 FILM NUMBER: 99694451 BUSINESS ADDRESS: STREET 1: C/O NAM TAI ELECTRONICS INC STREET 2: SUITE 530-999 WEST HASTING ST CITY: VANCOUVER BC STATE: A1 ZIP: 00000 BUSINESS PHONE: 6046697800 MAIL ADDRESS: STREET 1: C/O NAM TAI ELECTRONICS CANADA LTD STREET 2: SUITE 530-999 WEST HASTING ST CITY: VANCOUVER BC STATE: A1 ZIP: 00000 6-K 1 NAM TAI ELECTRONICS, INC.'S NEWS RELEASES (6) 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 August 9, 1999 August 2, 1999 July 26, 1999 July 23, 1999 July 19, 1999 July 6, 1999 NAM TAI ELECTRONICS, INC. (Registrant's name in English) Unit 9, 15/F, Tower 1 China Hong Kong City, 33 Canton Road TST, Kowloon, Hong Kong NEWS RELEASE CONTACT: WENDY WISEMAN INVESTOR RELATIONS ASSOCIATE NAM TAI ELECTRONICS, INC. REPRESENTED BY: PAN PACIFIC I.R. LTD. SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. Q2 SALES UP 37%, EPS UP 89% TO $0.51 VANCOUVER, CANADA August 9, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced results for the second quarter ended June 30, 1999. Net sales for the second quarter of 1999 were $42.1 million, an increase of 37% compared to $30.9 million for the second quarter of 1998. Operating income increased 57% to $3.8 million ($0.41 per share) compared to 1998 second quarter operating income of $2.4 million ($0.24 per share). Non-operating income was $1.1 million, up from $438,000 in 1998. Net income was $4.7 million, an increase of 67% over $2.8 million in the second quarter of 1998. Basic and diluted earnings per share for the second quarter of 1999 were up 89% to $0.51 versus $0.27 for the second quarter of 1998. "I am pleased that the strong rebound in sales and earnings that we predicted are now beginning to be reflected in our second quarter results", commented Nam Tai's Chairman, Mr. Murakami. "The diversification of our product mix as a consequence of increases in shipments of LCD modules for cellular phones, personal organisers, and linguistic products is also satisfying. We continue to foresee a strong move upward in sales and operating profits throughout the balance of 1999 as we exploit our recently announced expansion plans and capitalise on our business initiatives started in the first half of 1999." Net sales for the six months ended June 30, 1999 increased by 21% to $ 69.2 million from $57.1 million for the first six months of 1998. Operating income for the first six months of 1999 increased by 9.6% to $6.3 million ($0.67 per share) from $5.8 million ($0.54 per share) for the prior year period. Non-operating income decreased by $1.6 million to $1.5 million ($0.15 per share) from $3.1 million ($0.28 per share). As a result, net income for the six month period was down 14% to $7.5 million from $8.7 million for 1998. Basic and diluted earnings per share for the first six months of 1999 were $0.79 compared to $0.81 for the prior year period. The Company continues to maintain a strong financial position, ending the second quarter of 1999 with $8.16 of cash per share and approximately $13.85 of net book value per share, based on 9,250,323 shares outstanding as at June 30, 1999. The Company, as at June 30, 1999, had a cash to current liabilities ratio of 1.9:1, a current ratio of 2.9:1, a total assets to total liabilities ratio of 4.2:1, no long term debt, and approximately $75.5 million of cash, $72 million of which is in short term deposits in U.S. currency. The Company's gross profit margin was 20.5% for the second quarter 1999 versus 24.2% in the prior year. "The 1999 second quarter margin of 20.5% is down from the 22.0% margin in the first quarter, as a result of a more balanced product line mix, but continues to remain above industry averages and slightly above our target for the year", commented Mr. Murakami. "We also witnessed improved operating margins (9.0% vs. 7.9%) and net income margins (11.1% vs. 9.1%) compared to the same period in 1998." Sales by product line in the second quarter 1999 versus 1998 were: Calculators (40% vs. 70%), Subassemblies and Components (25% vs. 8%), and Personal Organizers and Linguistic Products (23% vs. 12%). Sales by region in the second quarter of 1999 versus 1998 were to North America (30% vs. 53%), Japan (13% vs. 20%), Europe (17% vs. 22%), Hong Kong and others (40% vs. 5%). "As a result of strategic business decisions, Nam Tai today is more than just a great calculator company", commented Mr. Murakami. "We have become more diversified, both geographically and by product line and are confident that we will see strong sales growth in the second half of 1999, particularly from sales of LCD modules for cellular phones, personal organizers and linguistic products, and telecommunication products". In advance of today's positive results, Nam Tai recently released a series of optimistic news releases detailing the following exciting business developments: * The establishment of a new Telecommunication division which is now selling 900MHz phones to private label customers in Europe. * Success in attracting a new, well-known, ODM customer in Japan for electronic dictionaries. The Company expects sales in this market to reach 1.4 million units in 1999, up by 50%. * The introduction of new Chip on Glass production, an advanced technology which is used in the manufacturing of LCD modules for cellular phones. To satisfy expected demand, the Company expects its monthly production capacity will increase to 1 million units by September 1999, up 100%. * An expanded relationship with Legend, China's largest PC manufacturer, to include joint research and development of new products. Nam Tai in January was appointed by Legend to manufacture a palm-sized PC with pre-installed Microsoft Windows CE (Chinese version) operating system software. INVESTMENT IN GROUP SENSE (INTERNATIONAL) LIMITED ("GROUP SENSE") On July 9, 1999 Group Sense, a 20% owned affiliate, released operating results including the six month period ended March 31, 1999. Nam Tai's non-operating income for the quarter ended June 30, 1999 includes $260,000, representing the Company's share of Group Sense's net income for the six-month period ending March 31, 1999, accounted for under the equity method. DIVIDENDS On July 16, 1999 the Company paid a quarterly dividend of $0.08 per share to shareholders of record on June 30, 1999. The record date for the third quarter dividend of $0.08 per share is September 30, 1999 and the payment date is on or before October 16, 1999. SECOND QUARTER RESULTS ANALYST CONFERENCE CALL The Company will hold an analysts-only conference call today, Monday, August 9, 1999, at 12:00 noon Eastern Time for analysts to discuss the second quarter results with management. Shareholders, investors and other interested individuals are invited to listen to the live conference call by dialing (612)-332-0819 just prior to its start time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked to register with the conference call operator. ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL INC. The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the facilities of Nam Tai, Deswell Industries Inc. (NASDAQ/NM Symbol: DSWL), and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip is scheduled for August 15th to 20th, 1999. Interested analysts and investors are encouraged to contact the Company for further details about attending the trip. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's, personal digital assistants, linguistic products, calculators, smart card readers and various components which are used in telecommunication products, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology. Further information is available from 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 expectation regarding future sales and profit growth are forward looking statements the result of which are uncertain and dependant upon many factors including end-user demand, fluctuations in sales, changes in product mix, competitive pressures, technological change, and changes in general economic conditions. Other factors that might cause differences in this and 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 1. "Description of Business - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1998. -more- NAM TAI ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998 (In Thousands of U.S. Dollars except share data)
Three months ended Six months ended June 30 June 30 ---------------- ----------------- ----------------- ---------------- 1999 1998 1999 1998 ---------------- ----------------- ----------------- ---------------- Net sales $ 42,136 $ 30,857 $ 69,211 $ 57,137 Cost of sales 33,513 23,392 54,618 43,081 ---------------- ----------------- ----------------- ---------------- Gross profit 8,623 7,465 14,593 14,056 ---------------- ----------------- ----------------- ---------------- Costs and expenses Selling, general and administrative expenses 4,224 3,295 7,221 6,284 Research and development expenses 589 293 1,068 574 Non-recurring expense - 1,445 - 1,445 ---------------- ----------------- ----------------- ---------------- 4,813 5,033 8,289 8,303 ---------------- ----------------- ----------------- ---------------- Income from operations 3,810 2,432 6,304 5,753 Gain on disposal of property, plant and equipment 300 490 294 830 Other income (loss) - net (261) (1,129) (674) (131) Interest income 779 1,077 1,587 2,349 ---------------- ----------------- ----------------- ---------------- Income before income taxes 4,628 2,870 7,511 8,801 Income tax expense 205 68 280 134 ---------------- ----------------- ----------------- ---------------- 4,423 2,802 7,231 8,667 Share of results of associated company 260 - 260 - ---------------- ----------------- ----------------- ---------------- Net income $ 4,683 $ 2,802 $ 7,491 $ 8,667 ================ ================= ================= ================ Net income per share Basic $ 0.51 $ 0.27 $ 0.79 $ 0.81 ================ ================= ================= ================ Diluted $ 0.51 $ 0.27 $ 0.79 $ 0.81 ================ ================= ================= ================ Weighted average number of shares ('000') Basic 9,252 10,312 9,454 10,712 Diluted 9,252 10,332 9,465 10,731
NAM TAI ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 1999 AND DECEMBER 31, 1998 (In Thousands of U.S. Dollars) Unaudited Audited June 30 December 31 1999 1998
------------------ ----------------- ASSETS Current assets: Cash and cash equivalents $ 75,471 $ 71,215 Accounts receivable, net 25,397 16,138 Inventories 7,492 4,355 Marketable investments 72 513 Prepaid expenses and deposits 6,803 4,794 ------------------ ----------------- Total current assets 115,235 97,015 Investment in unconsolidated subsidiary 1 1 Investment in associated company 16,805 16,223 Property, plant and equipment, at cost 52,873 48,117 Less: accumulated depreciation and amortisation (17,794) (15,672) ------------------ ----------------- 35,079 32,445 Other assets 1,396 1,544 ------------------ ----------------- Total assets $ 168,516 $ 147,228 ================== ================= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable $ 7,617 $ 329 Accounts payable and accrued expenses 31,686 18,377 Dividend payable 740 665 Income tax payable 277 105 ------------------ ----------------- Total current liabilities 40,320 19,476 Deferred tax liabilities 57 56 ------------------ ----------------- Shareholders' equity: Common shares 93 98 Additional paid-in capital 80,241 80,044 Retained earnings 47,761 47,509 Accumulated other comprehensive income (note 1) 44 45 ------------------ ----------------- Total shareholders' equity 128,139 127,696 ------------------ ----------------- Total liabilities and shareholders' equity $ 168,516 $ 147,228 ================== =================
NAM TAI ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998 (In Thousands of U.S. Dollars) Three months ended Six months ended June 30 June 30 1999 1998 1999 1998
--------------- --------------- --------------- --------------- CASH FLOWS FROM OPERATIONS Net income $ 4,683 $ 2,802 $ 7,491 $ 8,667 Add/(deduct) adjustments to net income: Depreciation and amortisation 1,294 1,073 2,535 2,059 Stock option compensation expense - - - 75 (Gain) loss on disposal of fixed assets (300) (490) (294) (830) Equity in income of affiliated company (260) - (260) - Loss on disposal of subsidiary 290 - 290 - (Gain) on disposal of Deswell shares - (333) - (1,299) Increase in deferred taxes 1 - 1 - Changes in current assets and liabilities: Marketable securities 198 493 441 (674) Accounts receivable (4,056) (1,763) (9,236) (4,611) Inventories (1,004) 2,607 (3,137) 4,086 Prepayments and deposits (2,379) 1,048 (2,009) (675) Notes payable 5,789 (44) 7,288 (1,000) Accounts payable 8,330 2,735 13,309 325 Income taxes payable 200 77 172 (67) --------------- --------------- --------------- --------------- 8,103 5,403 9,100 (2,611) --------------- --------------- --------------- --------------- Net cash flows from operations $ 12,786 $ 8,205 $ 16,591 $ 6,056 --------------- --------------- --------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on disposal of Deswell Shares $ - $ 587 $ - $ 2,132 Proceeds on disposal of land in Hong Kong 318 519 318 817 Proceeds on disposal of fixed assets 2 7 2 377 Additions to fixed assets (4,570) (2,623) (5,206) (3,059) Other assets 80 (21) 74 (21) Investment in associated company (322) (16,279) (322) (16,279) --------------- --------------- --------------- --------------- Net cash flow from investing $ (4,492) $ (17,810) $ (5,134) $ (16,033) --------------- --------------- --------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES Share buy-back $ (341) $ (12,718) $ (4,211) $ (16,688) Redemption of shares - - (1,550) - Dividend paid (743) (707) (1,431) (707) --------------- --------------- --------------- --------------- Net cash flow from financing $ (1,084) $ (13,425) $ (7,192) $ (17,395) --------------- --------------- --------------- --------------- Foreign currency translation adjustments (4) 8 (9) 8 Net change in cash and cash equivalents 7,206 (23,022) 4,256 (27,364) --------------- --------------- --------------- --------------- Cash and cash equivalents, beginning of period 68,265 98,069 71,215 102,411 --------------- --------------- --------------- --------------- Cash and cash equivalents, end of period $ 75,471 $ 75,047 $ 75,471 $ 75,047 =============== =============== =============== ===============
NAM TAI ELECTRONICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) For THE PERIODS ended june 30, 1999 AND 1998 (In Thousands of U.S. Dollars) 1. Accumulated other comprehensive income represents foreign currency translation adjustments. The comprehensive income of the Company was $7,490 and $8,675 for the six months ended June 30, 1999 and June 30, 1998, respectively. 2. Certain comparative items have been reclassified to agree to the presentation in the 1998 audited financial statements. 3. Business segment information - The Company operates principally in only one segment of the consumer electronic products industry. A summary of the net sales, income (loss) from operations and identifiable assets by geographic areas is as follows:
Three months ended Six months ended June 30 June 30 1999 1998 1999 1998 ------------------- ------------------ ------------------ ----------------- Net sales from operations within: - Hong Kong: $ 41,408 $ 30,584 $ 67,907 $ 56,596 Unaffiliated customers - PRC, excluding Hong Kong: Unaffiliated customers 728 273 1,304 541 Intersegment sales 38,444 28,733 63,029 53,134 - Intersegment eliminations (38,444) (28,733) (63,029) (53,134) ------------------- ------------------ ------------------ ----------------- Total net sales $ 42,136 $ 30,857 $ 69,211 $ 57,137 =================== ================== ================== ================= Income (loss) from operations within: - PRC, excluding Hong Kong $ 2,662 $ 2,027 $ 4,747 $ 5,030 - Hong Kong 2,535 1,070 3,980 2,534 - North America (514) (295) (1,236) (1,103) ------------------- ------------------ ------------------ ----------------- Total net income $ 4,683 $ 2,802 $ 7,491 $ 8,667 =================== ================== ================== ================= As at As at June 30, 1999 Dec 31, 1998 ------------------- ------------------ Identifiable assets by geographic area: - PRC, excluding Hong Kong $ 48,156 $ 42,690 - Hong Kong 120,360 85,419 - North America - 19,119 ------------------- ------------------ Total assets $ 168,516 $ 147,228 =================== ==================
-end- NEWS RELEASE CONTACT: WENDY WISEMAN INVESTOR RELATIONS ASSOCIATE NAM TAI ELECTRONICS, INC. REPRESENTED BY: PAN PACIFIC I.R. LTD. SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. ANNOUNCES POSITIVE BUSINESS DEVELOPMENTS VANCOUVER, CANADA August 2, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the following business developments: NAM TAI'S EXPANDS BUSINESS WITH LEGEND Following Nam Tai's appointment in January to manufacture Legend's Tian Ji 1000 Palm-Sized PC with pre-installed Microsoft Windows CE (Chinese version) operating system software, the two companies recently signed a contract expanding the relationship to include joint research and development of new products. Services provided by Nam Tai to Legend now include active co-ordination and participation in product design and development, material procurement as requested, post-assembly quality assurance, and assembly of an increased range of portable personal electronic management devices including Personal Digital Assistants (PDAs) and Palm-sized PCs (PPC's). "We are very excited about our close relationship with Legend, China's largest PC manufacturer, as it strives to extend its leading position in desktop PCs to the non-PC area. Our success in developing and manufacturing products for Legend is a milestone for Nam Tai, marking our successful entry as an OEM/ODM manufacturer into China's large and growing consumer electronics market." commented Mr. Murakami, Chairman of the Nam Tai Group. NEW CUSTOMER INCREASES ELECTRONIC DICTIONARY SALES The electronic dictionary market in Japan in 1999 has witnessed rapid expansion compared to 1998. According to analyst forecasts demand for electronic dictionaries in Japan is expected to increase by 40% in 1999 to over 2.8 million units. Following Nam Tai's success in attracting a new, well-known, customer in Japan the Company expects its Japanese sales of electronic dictionaries to reach approximately 1.4 million units, an increase of 50%. A similar increase is expected for year 2000. Nam Tai attributes it success in this market to its full line of electronic dictionaries tailored to consumers of different ages and genders. Nam Tai's expansion into Original Design Manufacturing of Electronic Dictionaries was a key factor is securing these increased orders. The Company is now able to support customers with product design, including hardware and software development, in addition to its traditional OEM business. PRODUCTION OF LCD MODULES UP SHARPLY Nam Tai announced that it expects to see its production of LCD modules for various electronic products increase significantly to 15 million units in 1999, compared to 5.5 million units in the prior year, with sales of LCD Modules for cellular phones being the most notable contributor to the increase. To satisfy expected demand, Nam Tai will increase its monthly production capacity of cellular phone LCD modules to 1 million units by September 1999 from its current capacity of 500,000 per month. Year 2000 worldwide market of LCD modules for cellular phones is estimated to be 250 million pieces. Nam Tai believes that its success in securing increased LCD module orders arises from its continuing efforts to invest in the most advanced production equipment including fine pitch heat seal, COB, COG, SMT, TAB, OLB technologies and ACF heat seal technology. NAM TAI WINS TEXAS INSTRUMENT SUPPLIER EXCELLENCE AWARD FOR FOURTH CONSECUTIVE YEAR Nam Tai has been awarded the Texas Instruments 1998 Supplier Excellence Award. This is the fourth year in a row for Nam Tai to receive this prestigious award recognizing outstanding performance and continuous improvement. The recipients of this award represent less than one-half of one percent of the TI supplier base. The winners are an elite group of companies showing tremendous dedication and commitment to total quality in supplying products and services. Recipients are chosen for excellence in combined areas of Cost, Environmental Responsiveness, Technology Responsiveness, Assurance of Supply, and Quality. To qualify for the award the first time requires very high scores in each of the categories. To receive the award in subsequent years requires continuous improvement over the high scores required for the first year. "The Company is committed to the principle of providing total quality and will strive to meet the requirements to receive this award for a fifth year. We also extend the same commitment of total quality to all our OEM and ODM customers," commented Mr. Murakami, Chairman of Nam Tai. "Nam Tai believes that by co-ordinating with our OEM and ODM customers to bring high quality, reasonably priced products to the end user we secure the position of preferred supplier." SECOND QUARTER RESULTS RELEASE DATE Nam Tai's second quarter results for the period ended June 30, 1999 will be released before the market opens on Monday, August 9, 1999. The Company will hold an analysts-only conference call on Monday, August 9, 1999 at 12:00 noon Eastern Time for analysts to discuss the second quarter results with management. Analysts who wish to receive the dial-in number for this conference call are invited to contact Investor Relations at 1-800-661-8831 no later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time. Shareholders, investors and other interested individuals are invited to listen to the live conference call by dialing (612)-332-0819 just prior to its start time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked to register with the conference call operator. ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL INC. The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the facilities of Nam Tai, Deswell Industries Inc. (NASDAQ/NM Symbol: DSWL), and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip is scheduled for August 15th to 20th , 1999. Interested analysts and investors are encouraged to contact the Company for further details about attending the trip. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's, personal digital assistants, linguistic products, calculators, smart card readers and various components which are used in telecommunication products, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology.Further information is available from 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 expectations regarding sales of Electronic Dictionaries and LCD Modules are forward looking statements the results of which are uncertain and dependant upon many factors including possible changes in customer order expectations, production difficulties, increased competition, or changes in the general economic climate. Other factors that might cause differences in these and 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 1. "Description of Business - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1998. -end- NEWS RELEASE CONTACT: WENDY WISEMAN INVESTOR RELATIONS ASSOCIATE NAM TAI ELECTRONICS, INC. REPRESENTED BY: PAN PACIFIC I.R. LTD. SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. ACQUIRES NEW TELECOM DIVISION VANCOUVER, CANADA July 26, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the establishment of a new telecommunications division, emerging from a successful acquisition in Korea. Set up as Nam Tai Telecom (Hong Kong) Co. Ltd. ("NT Telecom"), this new subsidiary is based in Hong Kong with a branch office in Korea and related research and development teams in Japan and North America. NT Telecom develops, manufactures, and sells high frequency wireless telecommunication products. Through this acquisition, Nam Tai immediately gains established customer relationships, existing sales orders, and most importantly the necessary licences to sell its 900 MHz cordless telephones in the European market. Under the current European regulatory system, licensing approval must be sought and obtained from each individual country for permission to produce and sell cordless telecommunication products, a lead time often taking 15 months or more. With this acquisition Nam Tai bypasses this hurdle and has recently delivered its first shipment of 900 MHz cordless telephones to Europe to be sold under the customers' private label. From the acquisition Nam Tai also inherits a complete team of excellent Korean managers with strength and experience in research and development, production, and marketing. "Nam Tai is determined to be a major player in the world-wide telecommunications industry in the coming years", explained Mr. Murakami, Nam Tai's Chairman. "As a result of this acquisition, we are now producing 900 MHz cordless telephones from our existing manufacturing facilities located in Shenzhen, China. We expect to have capacity in place to produce between 4 and 5 million units in year 2000 for the world-wide market." The new telecommunication division consists of a fully equipped manufacturing base located within Nam Tai's existing manufacturing complex, sales and marketing operations in Hong Kong, and three strong research and development teams already established in Korea, Japan and North America. To remain on the leading edge of technology the research and development teams are continuously pursuing and researching new high technology telecommunication products and manufacturing expertise. They are also responsible for developing new products including digitally enhanced cordless telephones ("DECT"), family radio systems ("FRS") and 2.4 GHz high frequency communication products. The new products are scheduled for commercial production within 2 years. Mr. S. Shim, formerly an Executive Director for over 20 years with Maxon Electronics Co., Ltd. ("Maxon"), was appointed as Managing Director of NT Telecom. Maxon is the world's second largest manufacturer of cordless telephones and is a leading player in the world-wide telecommunication industry. Mr. D.G. Hahn has been appointed as the Executive Director of NT Telecom, and will be responsible for two sales and marketing teams headed by Mr. J.S. Kim (Europe) and Mr. S.J. Lim (North America). Mr. Hahn brings 20 years of telecommunication sales and marketing experience including 15 years as an Executive Director with Maxon where he worked closely with Mr. Shim. "Nam Tai's marketing strategy is to offer high quality value added telephones with additional functions and enhanced design at a lower price than competitors" commented Mr. Murakami. "The telecommunication industry is experiencing rapid growth and intense competition. Nam Tai's COG technology that is used to produce advanced LCD modules, a critical part in high-end telecommunication products, allows the company to produce telecommunication products with a comparative cost advantage. By continually improving product design and production efficiency, and investing in advanced technologies such as COG, we expect to remain competitive while maintaining steady profit margins." SECOND QUARTER RESULTS RELEASE DATE Nam Tai's second quarter results for the period ended June 30, 1999 will be released before the market opens on Monday, August 9, 1999. The Company will hold an analysts-only conference call on Monday, August 9, 1999 at 12:00 noon Eastern Time for analysts to discuss the second quarter results with management. Analysts who wish to receive the dial-in number for this conference call are invited to contact Investor Relations at 1-800-661-8831 no later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time. Shareholders, investors and other interested individuals are invited to listen to the live conference call by dialing (612)-332-0819 just prior to its start time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked to register with the conference call operator. ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL INC. The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip is scheduled for August 15th to 20th, 1999. Interested analysts and investors are encouraged to contact the Company for further details about attending the trip. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Nam Tai manufactures telecommunication products palm-sized PC's, personal digital assistants, linguistic products, calculators, telecommunication products, smart card readers and various components which are used in, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology. Further information is available from 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 expectations regarding the future prospects and opportunities of its telecommunication division including units and products produced are forward looking statements the results of which are uncertain and dependant upon many factors including reliance of key management people, end-user demand, competitive pressures, potential delays in development times, technological change, and changes in licensing requirements. Other factors that might cause differences in this and 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 1. "Description of Business - - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1998. -end- NEWS RELEASE CONTACT: WENDY WISEMAN INVESTOR RELATIONS ASSOCIATE NAM TAI ELECTRONICS, INC. REPRESENTED BY: PAN PACIFIC I.R. LTD. SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. CORPORATE UPDATE VANCOUVER, CANADA July 23, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today provided a general corporate update. DIVESTITURE OF CANADIAN SUBSIDIARY Nam Tai announced the sale of Nam Tai Electronics (Canada) Ltd. ("NT Canada") to its management staff. This decision was made following the relocation of Mr. Koo, Senior Executive Officer, from Vancouver to Hong Kong to provide strategic support for Nam Tai's expansion of new and existing business in the Far East. NT Canada provided investor relations and regulatory compliance services to the parent Company from its office in Vancouver, British Columbia, Canada. NT Canada, now no longer a subsidiary of Nam Tai, will be renamed Pan Pacific I.R. Ltd. by its new owners, and will continue to provide similar services to Nam Tai and other companies. SHENZHEN NAMTEK SHOWS PROFIT AND EXPANSION Shenzhen Namtek Co., Ltd. ("Namtek"), a Nam Tai subsidiary established in December 1995, announced its first year of profitable operations. (Namtek broke even in fiscal 1997, and experienced losses in the first two start-up years.) Located in Shekou China, Namtek employs approximately 22 software engineers and provides the facilities and expertise to assist in new product research and development, offering its customers program design for microprocessors, enhanced software design and development services, and strengthening the Company's ODM capabilities. Since its establishment Namtek has built a reputation for on time delivery of quality software with a price advantage relative to competitors based in Japan and Taiwan. As a result of an increasing number of customers and orders, Namtek will move in August to a new larger 4,300 sqft. office, fully equipped with auditorium meeting rooms, an advanced PDS telecommunication system, and satellite communication systems and increase the number of software engineers to 35 before the end of 1999. ZASTRON'S SALES TRIPLE Zastron Plastic & Metal Products (Shenzhen) Ltd. ("Zastron"), a Nam Tai subsidiary established in 1992, announced that sales have almost tripled (excluding sales to the Nam Tai Group) compared to the same period last year and profits have shown similar improvements. Zastron, located in the same campus as Nam Tai's main factory, is principally engaged in silk screening metal and PVC products, many of which are used in products manufactured by the Company's manufacturing subsidiary. Zastron also provides silk screening of products for other unrelated companies. With the assistance of Nam Tai, Zastron has successfully expanded its customer base beyond Nam Tai demonstrating its viability as an independent contributor to Nam Tai's results. SECOND QUARTER RESULTS RELEASE DATE Nam Tai announced it will report its second quarter results for the period ended June 30, 1999 before the market opens on Monday, August 9, 1999. The Company will hold an analysts-only conference call on Monday, August 9, 1999 at 12:00 noon Eastern Time for analysts to discuss the second quarter results with management. Analysts who wish to receive the dial-in number for this conference call are invited to contact Investor Relations at 1-800-661-8831 no later than Friday, August 6, 1999 at 6:00 p.m. Eastern Time. Shareholders, investors and other interested individuals are invited to listen to the live conference call by dialing (612)-332-0819 just prior to its start time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers will be asked to register with the conference call operator. ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL INC. The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip is scheduled for August 15th to 20th, 1999. Interested analysts and investors are encouraged to contact the Company for further details about attending the trip. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Products manufactured by Nam Tai include palm-sized PC's, personal organizers, personal digital assistants, linguistic products, calculators, smart card readers and various components which are used in telecommunication products, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology. Further information is available from Nam Tai's web site at www.namtai.com. -end- NEWS RELEASE CONTACT: WENDY WISEMAN PUBLIC RELATIONS SECRETARY NAM TAI ELECTRONICS, INC. CORPORATE OFFICE: SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. ANNOUNCES LAND PURCHASE AND FACTORY EXPANSION VANCOUVER, CANADA July 19, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced that it has purchased a 280,000 square foot (6.5 acres) vacant lot bordering its current manufacturing complex located in Baoan County, Shenzhen, China. It is zoned industrial and is planned to be used for the construction of up to an additional 200,000 square feet of manufacturing, office or dormitory facilities. The land will be reserved for future expansion in a new project for a high technology product. Further details will be released once plans are finalised, tentatively expected before the end of summer 2000. "As a result of the Asian economic downturn, we were able to purchase this last remaining parcel of industrial land in the area at a significant cost saving. The land cost of $4.22 per sqft. compares favourably to the $6.69 per sqft. we paid in 1993 for our existing site" commented Mr. Murakami. "The proximity of the additional land to the existing manufacturing complex will help lower transportation costs, result in infrastructure savings, and allow for better overall management and control of the planned new project." FACTORY EXPANSION "In addition to the new land purchased, Nam Tai's existing manufacturing campus contains vacant land reserved and prepared for the construction of another new 160,000 sqft. manufacturing facility ("Phase II") that is scheduled for completion before the end of 2000. With the existing factory approaching full capacity, we have budgeted $15 million for construction of Phase II. Once operational Nam Tai will boast 470,000 sqft. of manufacturing space and its production capacity will increase approximately 30% by at the end of 2001. The number of employees will increase to 3,500 from 2,500 now", said Mr. Murakami. "Our $15 million budget for the Phase II factory project consists of $5 million for plant construction and $10 million for new equipment, machinery, and set up costs. The project will be financed internally from operating cash flows." CORRECTION OF SHORT POSITION The Company has received confirmation from NASDAQ that the short position of the Company's common shares as at June 15, 1999 was 48,477, and not 2,549,777 as previously reported. ANALYST TRIP TO HONG KONG AND CHINA VISITING THE FACILITIES OF NAM TAI ELECTRONICS, INC., DESWELL INDUSTRIES INC. AND BONSO ELECTRONIC INTERNATIONAL INC. The Company will be hosting a trip to Hong Kong and Shenzhen China to visit the facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL), and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW). The trip is schedule for August 15th to 20th, 1999. Interested analysts and investors are encouraged to contact the Company for further details about attending the trip. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Products manufactured by Nam Tai include palm-sized PC's, personal organizers, personal digital assistants, linguistic products, calculators, smart card readers and various components which are used in telecommunication products, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology. Further information is available from 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 expectation regarding future expansion of facilities, the future project for a high technology product, and reaching full capacity are forward looking statements the results of which are uncertain and dependant upon many factors. For example, construction of the new factory may be cancelled or delayed by changes in customer orders, construction problems, or changes in general economic conditions. Other factors that might cause differences in these and 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 1. "Description of Business - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1998. -end- NEWS RELEASE CONTACT: WENDY WISEMAN PUBLIC RELATIONS SECRETARY NAM TAI ELECTRONICS, INC. CORPORATE OFFICE: SUITE 1500 - 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 NAM TAI ELECTRONICS, INC. ENHANCES PRODUCTION CAPACITY FOR NEW PRODUCTS AND INCREASING ORDERS VANCOUVER, CANADA July 6, 1999 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced that, as a result of a strong market, increasing customer orders and demand for new hi-tech products, it has installed Chip on Glass ("COG") production technology at its manufacturing facility. Chip on Glass is an advanced technology that connects integrated circuit chips directly to liquid crystal display panels without the need of wire bonding. The technology is being used by the Company to produce advanced LCD modules for inclusion in high-end electronic products such as portable phones, personal digital assistants, etc. The Company has already commenced deliveries to satisfy new customer orders utilising this equipment. ADVANTAGES OF COG TECHNOLOGY INCLUDE: * lightweight and compact production capabilities * lower production costs * increased quality * reduced power consumption Production on Nam Tai's first 2 COG lines (20 sets of machines) commenced in June with a production capacity of 500,000 pieces per month. During the balance of 1999 the installation of an additional 2 COG lines (20 more sets of machines) will bring capacity to 1 million pieces per month. Nam Tai is also enhancing its production capabilities during 1999 with the addition of 10 new SMT lines (30 sets of machines including 2 high-speed lines) to augment its existing 7 lines (21 sets of machines). As well, 8 sets of fine pitch COB machines and one ACF machine are being added. In a further development, Nam Tai is adding during this year 5,500 square feet of clean room production area to its present 12,400 square feet of clean room. The new area, a class 5000 clean room, is essential to avoid particle contamination during production. COB, ACF and COG machines will all be located in the clean rooms. Nam Tai is estimating new capital investment in the equipment and improvements described above to approximate $15 million in 1999. Further investments are planned and will be announced as they are introduced. "The Company is excited with these new additions which significantly enhance our competitive position and broaden the range of products we are manufacturing", commented Mr. Murakami. "Analysts and investors wishing to tour our facilities and see these enhancements are welcome, and invited to join our Analyst Trip to Hong Kong and China scheduled for the middle of August by contacting the Company at 1-800-661-8831 for further details." RELATED DEVELOPMENTS In order to meet the demands of increased business activity and the consequential new equipment and improvement investments, Mr. M.K. Koo, Senior Executive Officer, Corporate Strategy, Finance and Administration, has relocated to the Company's Hong Kong offices. Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Products manufactured by Nam Tai include palm-sized PC's, personal organizers, personal digital assistants, linguistic products, calculators, smart card readers and various components which are used in telecommunication products, electronic toys, and household appliances. The Company utilizes advanced production technologies such as chip on board ("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape automated bonding ("TAB") and outer lead bonding ("OLB") technologies and anistropic conductive film ("ACF") heat seal technology. Further information is available from 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 expectation regarding production on the new COG lines are forward looking statements the result of which are uncertain and dependant upon successful introduction and operation of technology new to the Company. Other factors that might cause differences in this and 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 1. "Description of Business - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1998. -end- The Registrant hereby incorporates this Report on Form 6-K into its Registration Statement on Form F-3 (Registration No. 333-36135). 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/ Tadao Murakami Chairman Date: August 16, 1999 HONG KONG -----END PRIVACY-ENHANCED MESSAGE-----