CEC International Holdings Limited (CECIH) is a company listed on the Stock Exchange of Hong Kong Limited. The business of the Company and its subsidiaries (collectively known as the "Group") was founded in 1979. The main business of the Group is the design, development, manufacture and sale of a wide range of electronic components, including various types of coils, inductors, transformers, line filters and electrolytic capacitors, etc, as well as the ferrite and electroceramics materials, plastic and metal parts and electrolytic capacitors. Its products have been widely adopted in various industry segments, including power supply device, telecommunication equipment, data networking, digital audio-visual products, home appliances and handheld multimedia equipment, etc. With the Group’s persistent operating strategy of price and quality oriented, the Group has rapidly grown to a competitive player in the international coils industry.

Established in July 2010, 759 STORE is the retail business of the Group that was set up with reference to the consumer culture of living areas in Japan. Running with high inventory turnover rate, 759 STORE mainly sells item which directly imported from Japan and other regions of the world. It aimed to give desirable service to vast local HK residents, providing a relaxing shopping environment with wide range of products for our customers to choose.


The business of the Group was founded by Mr. Lam Wai Chun, the Chairman of the Company, in October when he set up a sole proprietorship engaging in choke coil assembly under the name of Coils Electronic Co. in Hong Kong.


Mr. Lam set up its first production facility in Xiaolan of Zhongshan, Guangdong Province, and made a processing arrangement with a third party manufacturing the Group’s products.


To cope with the increasing demand from customers, the Group further expanded its production facilities in Zhongshan and Dongguan, Guangdong Province.


Further expanded its production facilities in Fuzhou, Fujian Province.


Mr. Lam set up Coils Electronic Co., Limited in Hong Kong to establish a milestone for the Group’s corporate development. In June, the Group launched a relocation project to consolidate all its production facilities in different locations in Mainland China into one production base in order to enhance its production scale and make more efficient use of its resources. To implement this plan, the Group acquired a site of approximately 3,700 sq.m. in Dongfeng of Zhongshan, Guangdong Province, to construct its production headquarter. The relocation project was completed in 1991.


The Group set up a moulding department, plastic injection department and metal casing department to vertically integrate its production process.


The Group established a Chinese-foreign equity joint venture (which was later transformed to a wholly foreign owned enterprise in 1997) in Mainland China, Zhongshan Tonichi Ferrite Products Co., Ltd., to further pursue its strategy of vertical integration. The production base for the manufacture of coils and ferrite cores, was one of the most important components in the manufacture of coils. As a result, the Group was able to develop a wide range of different coils to attract new customers and cater for the changing requirements of its existing customers at a competitive price level.


The Group’s effort in securing the quality of its products was recognized by the accreditation of ISO9001 certificates for design and manufacture of ferrite cores and coils, respectively, in the Group’s production facilities in Dongfeng of Zhongshan, Guangdong Province.


The Group took another significant step in business development by investing the first full automatic fixed inductor production line, automating part of its production process for the manufacture of coils. After the installation of this automated production line, both the production efficiency and the quality of the Group’s products improved tremendously.

Established sales offices in Taipei.


Established sales offices in Shanghai.


The Group established another Chinese-foreign equity joint venture (which was later transformed to a wholly foreign owned enterprise in 1999), Xiamen Coils Electronic Co., Ltd., in Xiamen, Fujian Province, which has the production facilities to manufacture transformers and line filters, making the Group’s product line more comprehensive.

Established sales offices in Singapore.


The Company was listed on The Stock Exchange of Hong Kong Limited, named CEC International Holdings Limited, Stock code: 0759. The Group's financial frontier was significantly enriched for its future development and expansion.

The Group set up a research and development center in Singapore, CEC-Coils Singapore Pte Ltd, to focus on product development of surface mount type of coils and established a production facility equipped with a fully automated production line in Singapore to produce miniaturised surface mount type of coils.


The Group acquired three new land lots in Zhongshan to reinforce its core business foundation.

The Group invested more than HK$ 400 million in the new production facilities in Zhongshan included the construction of several new factory blocks fitted with state-of-the-art automated production facilities for the manufacture of such components as manganese-zinc series ferrite cores, which are the core parts of line filter and switching-mode power supply products.

The group established a new representative office in Bangalore, India, to capitalise on the great business opportunities emerging in this market, also recruited high calibers in production and engineering of coil.

Set up CEC-ECAP Limited ("CEC-ECAP") in March. CEC-ECAP has been dedicating to the design, development, manufacture and sale of a wide range of high-quality aluminum electrolytic capacitors with high temperature endurance. Its factory premise is located in Dongguan, Guangdong Province, with over ten years of experience in the production of electrolytic capacitors. CEC-ECAP’s pursuit of quality assurance was recognized by the accreditation of ISO9002 certificate from DNV Certification Ltd.

The Group’s subsidiary CEC-Technology Limited, developed and managed the group’s website www.0759.com, email system, online sales system and ebanking of the Enterprise resource planning system.


The Group Launched the new production of switching mode power supply, which mainly applies for the mobile charger and computer power and its core component, Mn-Zn Ferrite cores.

In November, office was established in Chongqing (which was later Chongqing CEC- Technology Limited). The newly formed system development team developed Enterprise Resource Planning(ERP) System, which marked the Group entering the new stage of digital management.


The Group established Kunshan CEC-ferrite Manufacturing Co., Ltd. in August.


The Group established Nanjing Guo Zhong Magnetic Material Co., Ltd, which engaged in manufacturing the ferrite powder for deflection yoke in display tube. The sales agreement with the subsidiary of L.G. Philips Displays further enhanced the Group’s technology in ferrite powder manufacturing and increase sources of raw materials supplies.

In November, the Group started the “Executive Trainee Program”, which aims at training and incubating university graduates of Hong Kong and PRC, and developing a new generation of management to support the Group’s fast-growing business.


The Group successfully obtained the accreditation of Green Partner, issued by several Japanese corporations. This showed the recognition of the Group’s clients in using raw materials, which conforms to high environmental protection standard, to produce electronic products.

The Group reached an agreement with the local government in Mainland China, for the purpose of the Group’s development in the coming three years, purchasing a land parcel of 35,000 square meters adjoining the Group’s main plant in Zhongshan for development in the next three years, total land area reached 90,000 square meters.


In April, the factory in Dongfeng, Zhongshan was accredited to ISO14001 certificates, which once again recognize the Group’s continual effort in improving the environmental system of production facilities and upgrading product quality.


The Group had undertaken a development work on its main plant in Zhongshan, in addition to the completion of two new plants of approximately 19,600 square meters. Not only enables the Group to expand its manufacturing operation, but also achieves a smoother production process with the better arrangement in installation of production lines in a more spacious production environment.


Product Research and Development Department, Magnetic Materials Development Department, Calibration Department and Quality Management Department were established in Hong Kong Headquarters. In aligning with its long-term business development, the Group has employed several technical professionals of the electronic industry through global recruitment and "Admission Scheme for Mainland Talents and Professionals" run by Hong Kong Immigration Department.


In response to the phenomenal impact from the financial tsunami, our group proactively integrated our infrastructure in automated production built over the years, restructured our human resources in production. The proportion of automation was significant raised compared with major competition, enhancing the cost effectiveness of production of coils. Under global economic transformation, the group reduced the investment in production, and capital expenditure was focused in investment of properties in Hong Kong.


Acknowledging the group’s need to seek new business opportunities in Hong Kong and new direction for the advancement of Hong Kong staff, the development of Retail Business in Hong Kong was set in motion, with reference to the consumer model of Japanese Local Living Perimeters. On 7th July, marked the grand opening of the group first retail outlet “759 Store”, with the business motto set to service Hong Kong local neighborhood, bringing in from Japan and the rest of the world specialty food, including snacks, drinks and other food item. In November, 759 Store reached the number of 7 brunches. Meanwhile, the Store faced a supply obstacle, some of the local supplier stop supplying the products. The group started the self importing business.In December, the first “Direct Japan Import” container imported to Hong Kong.


“759 Store” is the Group’s new line of retail business with reference to the consumptionmodel of Japanese localities. The business is principally engaged in the sales ofconfectioneries, beverages and other packed foods imported from Japan and otherregions in the world. The origin of its products mainly includes Japan, followed byKorea, Taiwan and Europe. We adopt the policy of high turnover, wide varieties,leisurely shopping environment and desirable service, and positioned the general publicas our target customers. For this year, the number of outlets increased to 71. Capitalizing on the purchase mode of parallel imports and the business aim of “lower margin with high turnover”, 759 Store is able to expand itself into a sizable retail chain store. We aim to offer customers with a leisurely and comfortable shopping environment as well as relatively affordable prices as a result of high turnover, so that the general public can enjoy high quality imported foodstuffs that are used to be available only at high-end supermarkets. In this regard, the outlets of 759 Store are mainly located in citizens’ living districts such as shopping malls or stalls situated at public and private housing estate and shops along the MTR stations.


In this year the retail business recorded a revenue of HK$812,150,000 In terms of segmental revenue, retail business has become the major income source for the Group in the year, accounting for about 63% (2012: 30%) of total revenue. Thankful for the trust and support given by the landlords of shopping centres and shop units, they have offered a number of shop locations to 759 STORE for opening new shops. As at 30 April 2013, the number of 759 STORE branches was 134 increasing by 63 branches. Targeting to serve the vast Hong Kong residents, branches of 759 STORE are widely located in 18 districts. The site selection of 759 STORE goes deep into local residential areas. Most of the branches are located in shopping malls and shop units of public and private housing estates. The retail floor areas of 759 STORE were about 146,000 sq ft in total and approximately 1,090 sq ft per shop. The increased average net floor area of our shops could not only provide much more space to show new import products of which the quantity was increasing, but also could provide a much more spacious and comfortable shopping environment for our customers.


759 STORE has 192 branches. During the year, the Group established various new attempts by setting up the following new trade names, including “759 STORE Household Market” featuring household goods and small electrical home appliances; “759 STORE Frozen Market”that specializes in selling frozen food and grocery food items; “759 KAWAIILAND”that mainly sells personal care products, skincare and cosmetic items and various interesting goods from Japan; while “759 STORE Supermarket” sells all types of goods self-imported by the Group. We are gradually developing more diversified source of goods with new attempts with an aim to offer more choice for local residents.

Revenue from retail business marked a continuous growth for the year. Our established product source and supply chain became the most crucial factors for the development of 759 STORE. 759 STORE places great emphasis on the independency and flexibility on pricing setting and it insisted on pricing the product with an established reasonable formula, as such, the Group has to develop its own procurement model based on direct import. Our procurement team comprised members who have worked in the coil business for years. Over the year, product source network was extensively expanded and 759 STORE products were sourced from over 60 countries and regions. In addition to snacks, beverages, grocery food items, wine and spirit, product categories have now extended to frozen food, household products, baby products, personal care products, cosmetic, etc. Total number of product category sold for the year exceeded 14,500 types. 759 STORE has not only forged close supply partnership with large overseas wholesaler but also maintained a direct supply relation with several manufacturers. Riding on these opportunities, we hope to form a stableand price competitive product supply, providing more premium products to customers at reasonable price. Product price of 759 STORE was set by formula with constant markup percentage so that the product prices for most of the foreign import products in our stores would roughly be similar to those in the market of their own country, and our customers could buy foreign import products in Hong Kong at similar consumption level as if they stayed and bought in that country of origin. Under the high inventory turnover policy, the Group was able to place steady, bulky and long term purchase orders to foreign distributors and manufacturers, and stable demand allows suppliers to improve its cost so as to offer a more competitive export-pricing.


The Group’s retail shops stood ata number of 249 (2014: 192) shops. Nowadays, the retail business of 759 STORE has transformed from just selling snacks and beverages in the initial stage to the current stage of more varieties of merchandise and new attempts. We have also properly explored beyond the retail market to span the mass livelihood market, including bakery workshops and restaurants.

In the Year, the revenue of the retail business continued to grow. The establishment of a unique procurement and supply chain system has been the critical factor of 759 STORE’s successful development. 759 STORE has been extremely persistent in pricing autonomy and flexibility, and is persistent in pricing with reasonable formulae. Therefore, we have to rely on self-import for developing our source of supply. Our procurement team is composed of the core staff who served the coil business in prior years. After a few years’ development, our procurement commands a sourcing network that spans worldwide. 759 STORE has so far sourced from 63 different countries and areas. Currently its merchandise categories includes snacks, beverages, rice and grain, non-staple food, frozen food, alcohols, pet snacks, household goods, kitchenware, household electric appliances, personal care supplies, cosmetics, supplies for babies, toys, novelties, accessories, etc. Merchandise sold during the Year aggregated 23,500 varieties. 759 STORE’s imports from the international network are mainly from overseas manufacturers, farms, exporters and major local wholesalers. When pricing is made, we will base on the import price to formulate with constant percentages and parameters. When the price is workout, most often the price will be similar to the retail selling price in the place of origin. In this way, when customers shop on imported merchandises they just feel like shopping overseas with similar consumer prices of those sold overseas.


In the financial year, the retail market of Hong Kong had experienced an abrupt reverse. According to the “Report on Monthly Survey of Retail Sales” released monthly by the Census and Statistics Department of Hong Kong, value of total retail sales recorded a drop in every month during the financial year when compared with the same month last year, and posted and escalating trend in terms of magnitude of the falls. This reflected a continual downturn in the retail market of Hong Kong as well as an increasingly steep decline in consumer confidence. In fact, the founder has foreseen considerable degree of adjustment in the economy of Hong Kong after years of prosperity and growth, and yet believes that the Group should grasp the opportunities to actively consolidate the market position and the operational scale of 759 STORE, stick to the self-import model of high flow rate and the “Quick Turnover with Lower Margin” policy, and also orderly increase the proportion of daily necessities that are immune to economical ups and downs, such as food groceries (oil, rice, noodles and etc), frozen meats and seafood and personal care products. As at 30 April 2016, our retail business had 271 (2015: 248) shops in operation (not including co-operative shops).

Apart from 759 STORE, the Group operates specialty shops in different themes, which include 759 KAWAII/KAWAIILAND, 759 STORE FROZEN MARKET, 759 STORE HOUSEHOLD MARKET/KAGUYA, 759 SKYLAND and 759 SHINGUYA. According to the operation data collected for years, products of the aforesaid specialty stores 15 shows much outstanding sales performance when they were built-in inside “759 STORE” and “759 STORE SUPERMARKET” of bigger size. The figures such as customers’ shop patronage, number of transactions and the product combination of each transaction also shows that customers tend to give their patronage to “759 STORE” and “759 STORE SUPERMARKET” of bigger size and wider variety of product offerings. The management would actively negotiate with landlords to seek for shop sites with bigger floor area and for broadening the user of the shop to contain more product categories. A shop with bigger shop floor area could provide customers with a much spacious and comfortable shopping and leisure environment. It could also display more product categories which provides wider choice for customers. The rent-to-revenue ratios for medium-sized and large-sized “759 STORE”.


According to the figures released monthly by the Census and Statistics Department of Hong Kong, the value of total retail sales declined in every single months from March 2015 for 20 consecutive months, of which the declining trend started from the mid of last year, extending to the period under review. The retail business of the Group, at that moment, was still under the period of active expansion; increasing shop number and logistic warehouse; so as to expand the product mix in the food groceries, with an aim to go beyond the existing market model that mainly relies on snack and confectionaries.

The Group had decided to resume the procurement policy that adopted when 759 STORE was first founded, concentrating the product source on import snack category, putting the always popular Japanese and Korean products again to mainstream so that the weighing of snack category in the revenue had gone back to more than 50%. Apart from snack, other main categories were food groceries, drinks (including alcohols), frozen foods and personal care products. Among those categories, the performance of frozen foods was most ideal that a remarkable increase was recorded in its revenue. Jelly, Chinese dim sum, Thailand jasmine rice, Japanese Kyushu ramen noodle, wet tissue and laundry gel ball were the bestsellers of snack, frozen foods, food groceries, noodle, personal care product and household consumable respectively.

As at October 2016, the number of 759 STORE membership card holders who made one and more than one purchases per week was around 420,000 visits, and those made one and more than one purchases per month was around 1,200,000 visits. This important figure actually reflects that, our precious member customers still give their long term support to 759 STORE, which is a great encourage for our staff.