| Asia Electronics Holding Co. | |||
| Ticker: | AEHCF | P.O. Box 71 Road Town | |
| Exchange: | NASDAQ-Small Cap Market | Tortola, VIR | |
| Industry: | Manufacturing (SIC Code 3679) | 8094942233 | |
| # of Employees: | 854 | ||
| Type of Shares: | Common Shares | Filing Date: | 7/3/97 | |
| U.S. Shares: | 4,600,000 | Offer Date: | 9/24/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $6.50 - $8.50 | |
| Primary Shares: | 4,600,000 | Offer Price: | $8.00 | |
| Secondary Shares: | 0 | Gross Spread: | ||
| Offering Amount: | $34,500,000 | Selling: | ||
| Expenses: | - | Reallowance: | ||
| Shares Out After: | 8,850,000 |
| Manager | Tier | Phone |
| Barington Capital Group, L.P. | Lead Manager | (212) 974-5700 |
| Issuer's Law Firm: | Proskauer Rose Goetz & Mendelsohn |
| Bank's Law Firm: | Kramer, Levin, Naftalis, Nessen, Kamin & Frankel |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $26.66 | $8.59 | $3.47 | Assets: | $42.18 |
| Net Income: | $4.11 | $1.18 | $0.29 | Curr Assets: | |
| EPS: | $0.85 | $0.24 | $0.06 | Liabilities: | $11.73 |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $30.45 | |||
| Cash Flow/Fin: | $3.32 | Cash: | |||
| Cash Flow/Inv: | -$2.25 | ||||
| Business Description |
| The company develops, manufactures and markets deflection yokes used by manufacturers of color television sets and computer monitors. The company is a British Virgin Islands company that develops and manufactures deflection yokes for sale to manufacturers of color television sets and computer monitors. The company believes it is the largest independent manufacturer of deflection yokes in the People's Republic of China and the third largest in the world. All the company's sales are to original equipment manufacturers, which integrate the company's deflection yokes into finished goods or remarket them to other OEMs. The company's customers include finished goods or remarket them to other OEMs. The company's customers inlcude Daewoo Corporation andits affiliates, Sanyo Electric Co., Ltd. And its affiliates, Kanematsu USA, Inc., Sharp-roxy Electronics Corporation, PT. Tosummit Electronic Devices, Toshiba Corporation, India Samtel Color Limited and IRICO Group. |
| Competition |
| The company's largest competitor is Murata, which produces approximately 10 million units per year. Murata announced in April 1997 that it was selling its deflection yoke facility in Mexico to Totoku. The company believes that Murata intends to exit the deflection yoke business. The company's other competitors include Samsung and Dogu Electronics Co. Ltd., a Korean company. The company also may face competition from emerging technologies, such as "flat-panel displays," which could reduce the use of the CRTs in the future. The principal methods of competition in the deflection yoke industry are price, responsiveness to customer demand generally and quality control. The company believes it is a strong competitor on the basis of price and quality because of its relatively low labor costs, manufacturing efficiencies and quality control program. |
| Business Plan |
| The company's goal is to use its manufacturing expertise and low manufacturing costs to become the largest independent manufacturer of deflection yokes in the world. To accomplish this goal, the company's strategy is to: (I) Expand its production capacity to meet existing and expected demand; (ii) Focus production expansion on higher margin products, such as deflection yokes for larger screen televisions; (iii) Expand penetration of CDT market; (iv) Expand customer relationships and (v) Expand product development. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to expand manufacturing facilities, for acquisitions, for research and development, for sales and marketing and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| To Shing Hoi | 94.00% | 51.50% |
| Du Qingsong | 94.00% | 51.50% |
| Officer Name | Title | Age |
| Du Qingsong | Chairman of the Board and Chief Executive Officer | 51 |
| Fan Baiyan | Chief Financial Officer | 51 |
| Hou Yibin | Director and Senior Technology Advisor | 43 |
| Aaron Y.P. Li | Director of Internation Sales | 50 |
| Li Liangjie | Vice Chairman of the Board and Chief Operating Officer | 59 |
| Additional Underwriter Compensation |
| Warrant to purchase 330,000 shares/units at $330.00 per share/unit. |