Tepid demand in key markets during the first quarter may have put a dampener on TPV Technology's ambitious expansion efforts in the global liquid crystal display (LCD) television sector.
Kowloon-based TPV, the world's largest contract manufacturer of personal computer displays, said business in North America and Europe 'was restrained by the sluggish economic climate' and that consumer sentiment had been hit by the earthquake in Japan.
'Consequently, TV panel prices continued to decline and ended the first quarter 5 per cent lower than they were at the beginning [of the year],' chairman and chief executive Jason Hsuan said.
TPV's share price was down 4.73 per cent yesterday to finish at HK$4.23, its lowest close since hitting HK$4.17 on November 27, 2009.
The Hong Kong-listed firm had been gearing up to significantly broaden its TV business this year.
Last month it secured a deal to take over the TV business of Dutch giant Royal Philips Electronics. They agreed to form a joint venture, which is 70 per cent-controlled by TPV, to conduct all research and development, manufacturing, sales and marketing of Philips TVs worldwide.