Kwang Yang Motor to deal out NT$1.5 in 2002 dividend

Taipei, April 21, 2003 (CENS)--Kwang Yang Motor Co., Ltd., a main local manufacturer of motorcycles, will distribute a dividend per share of NT$1.5, all in cash, for its operation in 2002.

Kwang Yang's shareholders, at this year's meeting on April 18, passed the dividend distribution and additional investment of US$12.3 million in the company's motorbike subsidiary in Indonesia.

Kwang Yang delivered approximately 305,700 motorcycles last year, including 213,600 sold on the domestic market and 921,000 exported. The domestic sales volume and export volume were each the highest among all makers of motorcycles in Taiwan. The company recorded revenue of NT$12.048 billion and pretax profit of NT$1.049 billion last year.

Since Kwang Yang's subsidiary in Indonesia needs more capital for introducing new motorcycle models, Kwang Yang will invest US$12.3 million more in the subsidiary, with cumulative investment reaching US$30.6 million. Kwang Yang's stake in the subsidiary will increase from 64% at present to 75% through the additional investment.

Since offering the new motorcycle model Striker 125 last year, the Indonesian subsidiary has enjoyed a significant growth in both sales and profitability. The subsidiary will offer Spike 125, a new 125cc scooter model, this year. Moreover, the subsidiary is expected to benefit from the appreciation of Indonesia rupiah from 10,300 rupiah against US$1 to 8,750 rupiah this year. With monthly sales volume increasing to 2,000 motorcycles, the subsidiary eyes annual sales volume of 30,000 motorcycles for this year and 50,000 eventually.

Kwang Yang estimates the domestic market for this year at 650,000 new motorcycles and hope to maintain its No. 1 position by a sales target of 227,500 motorcycles or a market share of 35%.

Following offering a 250cc motorcycle model last year, Kwang Yang is developing a 700cc scooter model, the world's largest scooter model in engine displacement, and a 400cc scooter model.

On the other hand, Kwang Yang has scored points in tapping new export markets in the Middle East and Africa. The company may export products to these markets or cooperate with makers there in local production by supplying manufacturing know-how. Including exports of beach scooters mainly to Europe, Kwang Yang believes its export volume for this year will rise from the originally projected 100,000 motorcycles to more than 120,000 ones.