SIM Technology, a China-based maker of handset boards and wireless communication devices, will list TDRs (Taiwan Depositary Receipts) on the Taiwan Stock Exchange (TSE) in late April 2011, according to company president Wong Cho-tung at a March 18 investors conference in Taipei.

The TDRs will be equivalent to 275-330 million SIM shares listed on the Main Board of the Hong Kong Stock Exchange, with 50% existing shares and 50% new shares to be issued for the purpose, Wong indicated. Each TDR will represent two SIM shares, Wong said.

SIM has transformed its business operation from a handset IC design house to developing handset solutions plus ODM handset, wireless communication modules and modem production, as well as handset and hand-held device LCD modules, Wong indicated.

For handset boards (solutions) and ODM production, SIM has shifted focus to 3G and smartphones to get rid of red-ocean competition, Wong pointed out. With Sharp, Panasonic, LG Electronics and South Korea-based Pantech being major clients currently, SIM plans to develop more than 100 smartphones and 3G handsets mostly based on Android, Wong noted.

SIM has extended production of wireless communication modules from GPRS and 3G to Wi-Fi, Bluetooth and ZigBee, Wong indicated. For LCD modules, SIM has been developing capacitive multi-touch panels, Wong added.

SIM posted operating revenues of HK$4.034 billion (US$519 million), gross margin of 12.2%, net profits of HK$233.3 million and net EPS of HK$0.15 for 2010.

Source: Company, compiled by Digitimes, March 2011

SIM Technology president Wong Cho-tung at an investors conference in Taipei
Photo: Daniel Shen, Digitimes, March 2011