Question-and-Answer Session
Operator
(Operator Instruction). Our first question today will come from Chenyi Lu with Brean Murray, Carret.
Chenyi Lu - Brean Murray, Carret
Hi, good morning. A very good guidance, especially in 2009. So, my question to you is, we know the 2009 the financial market is going to reduce the GDP growth. So can you discuss your business as to both on the government side and corporate side? Do you expect any slowdown or you do you see your business that won't be impacted by the global market weakening? Thank you.
Terence Yap
Thank you, Chenyi. Well, as I mentioned before, fortunate or unfortunate, whenever something bad happens, our business tends to be highlighted. The security industry, not only in China, but globally, I believe is more of a countercyclical business.
In China especially, as the government continues to increase its social harmony, it tries to bring together the social equality within the country. We also continue to see that the government will continue to spend in ensuring that safety standards within China will continue to improve.
The incidence in China, of accidents, et cetera, all highlight the fact that the government needs to improve on the civilians' and also on security standards. But during 2008, we also saw the snowstorm, the earthquake, et cetera. This also highlights the fact that the government needs to improve in terms of its disaster recovery and emergency response.
Therefore moving in 2009, we strongly believe that the government will continue to spend, will continue to improve the social harmony within China. So, we are still optimistic and confident about our growth of the security market in China.
Chenyi Lu - Brean Murray, Carret
And one more question regarding your gross margin. I know this that quarter; gross margin is weak because of the one-time event. I also note that you reiterate your guidance of 30%. So, what do you see in 2009? Do you think you're going to still maintain about 30% going forward?
Terence Yap
Yes. From our perspective, we are still on track with the full year of 2008 in terms of 30%. The first nine months of this year where we have average gross margin of 29.9%, so we are tracking well on our gross margins.
As I mentioned before, we have now put in place the foundation, we are building the foundation for a long-term sustainable and statistically a higher revenue, higher margin business. So, as we integrate all the manufacturing facilities into the industrial park, as we bid for higher margin business, we are still keeping on track in maintaining 30% gross margins for 2009.
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