The Group has witnessed strong growth and sales momentum in the first quarter of 2011, which recorded an increase of about 40%* as compared to the same period last year. The strong performance was due to the continued growth of our relatively new products such as notebook internal signal cable and connectors and while we continued to meet strong and stable demand for our relatively mature products such as external signal cable assembly by expanding production capacity and focusing on new customer base development. Such strong growth is attributable to the combined efforts of the Group ongoing strategic planning in terms of production capacity, sales and marketing, research and development and product development.
In terms of production capacity , the Group has always planned ahead and has since June 2010， began strategic planning and implementation of our production capacity plan for 211. As a result, we are able to increase our production capacity by 35% in the first quarter of as compared to the end of 2010, such increase in capacity has allowed us to meet the increased demand of our products by our existing customers and also allow us to take on new customers.
In terms of staffing, we were able to utilize the ample labor resources at our Dezhou base to maintain and even increase our production volume despite the Chinese Spring Festival in February 2011, taking strategic advantages of our competitors reduced level of production activities during such period to increase our market share in our target markets. This we believe would stand us in good stead going forward in terms of business volume as we continue to demonstrate our ability to meet our customers demand consistently. .
In terms of product development, our new products developed in the fourth quarter of 2010 such as notebook wireless antenna and high-speed cable have allowed us to register impressive sales growth in such new products in the first quarter of 2011 as we continued to increasingly gain recognition from our customers in our target markets. One significant new product we developed towards the end of 2010 is a new type of high speed cable called MINI-DP, which boasts a transmission speed of 70 Gbit per second by utilizing its unique seven transmission channels and is able to support the conversion and transmission of 3D images, which is widely deemed by market practitioners as the future development direction of the global high-end data transmission cable.
In terms of marketing and customers development, leveraging on our core competitive advantages in products development, pricing ability and one-stop products offering ability, we are able to develop both new customers and increase market share in the first quarter of 2011, leading customers such as Samsung, LG, TPV Technology and Innolux have all increased their procurement amount from us; At the same time, as we continue to strive towards getting increasing recognition from potential new customers in Japan, Europe and North America in our research and development capabilities, supply and delivery abilities and product quality, we are confident that they would gradually increase their procurement amount from us going forward.
In the second quarter of 2011,we will focus on the following aspects of work;
i) Strengthen the Group’s business operations and distribution capability in Southern China, by expanding product portfolio and production capacity focusing on particular communication cables and consumer electronic cables which would allow us to better meet the needs of customers such as ZTE, Gree and Midea and we would also strive to win new customers such as Huawei and China Telecom.
ii) Strengthen our antenna products operations in terms of product development and business development, by leveraging on the momentum we gained recently in March 2011 by winning Alpha Networks Inc. as a customer for our antenna products (Alpha Networks is global leader in networking and digital home ODM/OEM industry which counts D-Link and MIRAC Networks. We will continue to invest resources to expand our R&D and market development capability in order to further drive the sales of our antenna products.
iii) Following the commencement of production of LVDS internal signal cable assembly product in our Chongqing base in March 2011, we will continue to work on building and expanding the production capacity of our LVDS internal signal cable assembly product in the second quarter of 2011 in order to meet the expected demand of our customers including Quanta, Foxconn and Inventec. Our target is have a production capacity of 250，000 LVDS signal cable assembly per month by the end of the second quarter 2011.
iv) Continue to strengthen our marketing and customer development efforts by leveraging on our one-stop product offerings capability and to drive our overall sales growth by continue to develop new strategic customers, new products and markets, thereby providing a sound foundation for our future growth
* Note that this is based on our internal unaudited management accounts and may not reflect the results of the Group for the year ending 31st December, 2011, investors and shareholders of the Company are advised to exercise extreme caution when dealing in the shares of the Company.