Sunday, November 05, 2006

K-ONE Technology Bhd expects organic growth

K-ONE Technology Bhd expects organic growth to spur its top and bottom lines substantially next year.

Founder and chairman Edwin Lim Beng Fook said by then, the company would be better equipped to take on design tasks worth over RM1mil compared with the present RM100,000- to RM200,000-sized projects. This is in addition to manufacturing contracts worth over RM10mil from the present RM1mil.

The company exports almost 100% of its design services and manufactured electronic products in the mobile phone accessories, computer peripherals and consumer electronic industries.

It is currently investing RM1.5mil to set up a new design and development centre in Damansara Jaya and another RM1.5mil to expand its manufacturing facilities from its listing proceeds of RM8.4mil.

“We are also buying additional design and development equipment such as wireless testing equipment and CAD (computer-aided design) stations for the new centre,” Lim said, adding that the company would move in by January.

Some RM4.4mil will be for working capital and to defer the listing expenses while the balance of about RM900,000 will be used to set up a new sales office each in Europe and the US.

Currently, it has only one sales office in Oslo, Norway, and a sales representative office each in Sweden, the Netherlands and Britain.

“With the presence of these sales offices, we will be closer to our customers and be able to work together with our major clients’ design and development team to scout for new projects,” Lim said.

He added that K-One would also seek opportunities to buy suitable design companies overseas or local technology firms that complemented its business model.

Being a global player, he said K-One was “just scratching the surface and has plenty of room to grow in design and development as well as contract manufacturing operations.”

According to statistics by investment group Bears Stearns Inc, the market value of design services this year is estimated at some US$18bil while the contract manufacturing market is worth almost US$360bil.


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