Excerpts (must read all):
Eastech is an OEM manufacturer. It is also an ODM (Original Design Manufacturer). Some of the brands it owns and represents include: Dual, Atlantic Technology, Herron Audio, Emerson, Mission, Audire, Inc., Totem, Outlaw, Bryston, Power Source, Luxman, Paramount, and California Audio Labs.
Eastech claims to have the following competitive advantages:
The most vertically integrated A/V Company in terms of manufacturing. Also horizontally integrated in terms of technology and industry as it spans from Home Audio products, Professional Video Displays, to Internet Audio, Computer/Multimedia Audio, Gaming Industry to Communication Industry.
They are the leading OEM for speaker systems in terms of production and market share.
The only Audio/Visual OEM/ODM supplier who is able to offer Global Logistics to customers. In addition to its existing manufacturing facilities in China, Malaysia, US and Hungary, the Company plans to set up manufacturing plants in South Asia (India) and South America (Brazil) to enhance its global logistics network.
The Company has strong research and development capabilities, spending over $5 million in FY2000 on R&D. It also has over 120 senior R&D engineers.
Eastech is the only Company that can supply the complete MP3 range globally, i.e., from Standard-Play Back model, CD Based model, Multi-Code model, Encodable model, and Juke Box.
Eastech formed strategic alliances with leaders in the Internet Streaming field, namely ZapMedia, AudioRamp, and Arrio in order to be well-prepared for the increase in streaming A/V on the Internet within the next 4-5 years.
The Company forms strong relationships with its customers, with 90% of their customers being repeat customers. Many of their key customers have been with them for the last 10 years.
It has enforced stringent internal quality controls.
Mr Liou said, "A/V technology will continue to evolve as long as human beings still have ears and eyes."
He believes that revenue for FY2001 will continue to grow for the following reasons:
The results of a 3-fold increase in R&D spending in product development since 1999 will begin to bear fruit in FY2001.
One of the new products which the Company is very confident of its success is the DVD-Receiver for which it has secured at least 8 customers namely, TEAC, AKAI, KLH, Schneider, Quelle (Universum), D-Link, Hitachi and Emerson.
Eastech has also developed the whole range of MP3 players and Digital Juke Box.
In 1999, the Company invested in the expansion of the capacity at its two new factories in Hungary and ShaJing, China.
The number of production lines in the Hungary plant doubled from 2 to 4 lines. The factory in Hungary will focus on servicing key customers such as Phillips, Sony and JVC in FY2001.
In China, the ShaJing factory increased its capacity from 4 production lines to 6 lines, while the Hui Yang Electronics factory tripled its capacity.
New Japanese Customers in OEM/ODM - Audio/Visual Electronic Products
It was only at the start of FY2001 that Eastech has succeeded in securing orders from Japanese OEM/ODM accounts by the A/V Electronics Division. This was largely due to Eastech's employment of key Japanese staff with the relevant experience and network of contacts.
Higher End Markets
Eastech will continue to shift the manufacturing of its higher end products to Malaysia, such as Higher End Home Audio, Professional Audio and Commercial Audio product categories.
The Malaysian plant secured new orders in the above product categories:
New Business Units
It has developed two new business divisions, namely Branded Marketing and Internet Appliance, which will start to show returns by this year.
In Taiwan, Eastech has succeeded in securing 13 exclusive distributorships in Taiwan.
It targets to set up 28 direct-owned stores in Taiwan in 2001. It plans to have 60 "AV Inn" stores and 35 Brand Image stores by end 2002.