Turnover represents the invoiced value of goods sold, net of returns and allowances.
Gaojin has yet to achieve profitable operations and so its income tax exemption holiday has not yet commenced. The Board of Directors do not recommend the payment of any dividends for the year ended 31st December, 1998. Due to the low profit margin and increased overhead costs, the Group inevitably suffered a loss in its operations for the year under review. Electronic product business maintained a steady growth in turnover especially in the North American and Japanese market, but keen competition had cut its profit margin. The increase in overhead costs had also undermined its profit contribution.