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SGOCO Group, Ltd. Announces: (1) Annual Shareholders Meeting; (2) Update on Growth Initiatives; (3) New Staff Appointments
Dec 24, 2012 (08:12 AM EST)
BEIJING, Dec. 24, 2012 /PRNewswire/ -- SGOCO Group, Ltd. (Nasdaq: SGOC), ("SGOCO" or the "Company") a company focused on product design, distribution and brand development in the Chinese flat-panel display market, today announced:
1. Annual Shareholders Meeting
The Company's annual shareholders meeting will be held on December 28, 2012, at 9:00 a.m. Beijing Time. The meeting will take place at the Company's Beijing office, located at Suite 1817, Beijing Silver Tower, Chaoyang District, Beijing, China.
The matters to be voted on at the meeting are set forth in the Company's Proxy Statement filed with the U.S. Securities and Exchange Commission on November 26, 2012. Shareholders of record on November 16, 2012 will be eligible to vote at this meeting.
2. Update on Growth Initiatives
The Company is transitioning to a "light-asset" business model. The Company is implementing several strategic initiatives that are expected to drive and contribute to its revenue and profit growth over the next 12-24 months:
1). Diversify Product Portfolio: SGOCO is expanding its existing flat-panel display product lines to include e-boards and smart phones. The Company is also in the stage of researching application specific products (ASPs) and integrated solution products.
2). Broaden Customer Base: SGOCO continues to expand into the US flat-panel display market through its US subsidiary, SGO Corp., in addition to its core Chinese domestic customer base.
3). Increase Brand Portfolio: SGOCO intends to further enhance its brand portfolio of five flat-panel display brands by signing licensing agreements with new brand owners.
4). Resource Optimization: SGOCO plans to continue its efforts to reduce costs and increase resource optimization to better serve customers and improve overall efficiency in the areas of management, sales, brand and product development. The change in the Company's business model from a "heavy asset" model to a "light asset" model is expected to shift the sales and distribution model from its current distributor-focus to a more diversified model including direct sales to the industry end-customers with its tailor-made ASP products. It is also anticipated the Company will change its sales and distribution team to meet its customers' evolving needs.
Mr. Burnette Or, Chairman and Chief Executive Officer of SGOCO, commented "We believe implementing the preceding initiatives – multi-products, multi-channels, multi-brands and resource optimization – will establish SGOCO as a leading innovator of flat-panel display products for years to come. We expect to build a new sales team focusing on higher-margin products, including ASP integrated-solution sales. We believe implementing the latest technological innovations and developing more sophisticated flat-panel display products will further increase our market recognition domestically and internationally. That should result in greater revenue and profit growth in 2013 and beyond."
3. New Staff Appointments
In addition, Mr. Or stated that "we are pleased to have appointed Ms. Serena Wu as our new Investor Relations Manager to enhance our communication with the investment community. In addition, we are equally pleased to have appointed Ms. Liang Cheng as our new Internal Control Manager to strengthen our overall internal controls over financial reporting. SGOCO strives to improve continuously the management of its business, and further enhance its public company functions."
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is a company focused on product design, brand development and distribution in the Chinese flat panel display market, including computer monitors, TVs and application specific products. The Company sells its products and services in the Chinese market and abroad.
For more information about SGOCO, please visit our investor relations website http://www.sgocogroup.com.
Safe Harbor and Informational Statement
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those regarding the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the Company's strategic initiatives and the effectiveness of the Company's multiple-brand, multiple-channel strategy.
The Company's management believes that such forward-looking statements are reasonable. But, it cannot guarantee that such beliefs are, or will be, correct.
These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation:
1. the Company's ability to successfully implement its strategic initiatives, including designing and
2. requirements or changes adversely affecting the LCD and LED market in China;
3. fluctuating customer demand for LCD and LED products generally;
4. our success in promoting our brand of LCD and LED products in China and elsewhere;
5. our success in expanding our "SGOCO Image" model;
6. our ability to maintain effective internal control over financial reporting;
7. our success in manufacturing and distributing products under brands licensed from others;
8. changes in government policy including policy regarding subsidies for purchase of consumer
9. the fluctuations in sales of LCD and LED products in China;
10. China's overall economic conditions and local market economic conditions;
11. our ability to expand through strategic acquisitions and establishment of new locations;
12. changing principles of generally accepted accounting principles;
13. compliance with government regulations;
14. legislation or regulatory environments;
15. geopolitical events; and
16. other events and factors described in the "Key Information – Risk Factors" section in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on August 30, 2012.
The Company assumes no obligation to update any of the information contained or referenced in this press release.
For investor and media inquiries, please contact:
SGOCO Group, Ltd. (China)
SOURCE SGOCO Group, Ltd.