AOC monitors are global best-sellers.

With its technologically advanced and user-friendly AOC monitors, Top Victory Electronics Co., Ltd. (TPV) has become one of the most powerful manufacturers in Latin America and throughout the world.

Through its AOC subsidiary, the China-based holding company provides a full array of monitors for Latin American business and home customers, including the popular 17-inch CRT monitors, and innovative flat-screen liquid crystal display (LCD) models.

In the first quarter of 2001, TPV surpassed Philips to become the second-largest PC monitor maker in the world, according to a recent analyst's report by Victor Lai, Jardine Fleming Securities Limited in Hong Kong, an affiliate of JPMorgan. "TPV/AOC has come a long way from its No. 19 position in 1996," said Lai, who forecast sales of more than 11 million units totaling US$1 .286 billion for the company's fiscal year -- a significant increase from $962 million in FY 2000 and $612 million in FY 1999.

TPV/AOC monitors currently sell at significantly lower than average market prices, Lai said. This is a key advantage because major PC vendors are under pressure to keep costs down in today's global market slowdown. TPV's customers include Hewlett Packard, Legend, IBM, Fujitsu-Siemens, LG Electronics, Compaq and Dell -- as well as sales under the AOC brand.

At the same time, TPV/AOC is well-positioned to take advantage of growing worldwide demand for LCD monitors. In August, TPV introduced its Smart Integrated Panel (SIP) monitor, which is 51 percent thinner than a standard LCD monitor and includes a foldable and adjustable stem.

A rapid decline in LCD prices will result in strong growth in the LCD monitor market in the next few years, according to Lai. TPV will take advantage of that demand, he said, by increasing production from 400,000 LCD monitors in FY 2001 to 1.5 million in FY2002. reaching an estimated 8 percent share of the global market.

"In our view, TPV/AOC has adopted the right strategy by focusing on its core business of 17-inch CRT monitors while boosting LCD production," Lai said. "Industry consolidation is expected to drive unfocused and inefficient players out of the market, with focused monitor makers like TPV ultimately taking more market share from unprofitable players." Listed on both the Hong Kong and Singapore exchanges, TPV was founded in 1964 and now has about 10,000 employees worldwide.

Latin America accounts for about 10 percent of TPV's overall production. The holding company's AOC subsidiary has been an important player in the Latin American market since 1994 with offices in Miami, Santiago, Montevideo, Sao Paulo and Buenos Aires and a regional distribution network. AOC has manufacturing factories at Manaus and Sao Paulo, offering shorter delivery times for customers in the Mercosur region.

"As the number two monitor manufacturer in the world, we always try harder to serve our customers," says Alec Chan, director general of AOC do Brasil Monitores Ltda. AOC manufactures a complete line of video monitors in 14-, 15-, 17-, and 19-inch sizes, as well as 15-inch LCD monitors.

"AOC is strongly positioned to deliver the advanced technologies necessary for the new computing platforms like Windows XP and the new applications delivered over the Internet by ASPs," he added.

All AOC products incorporate advanced technology, with features that meet the needs of consumers, managers, business executives, and professionals. All monitors come with a three-year guarantee, well above the industry average. The company's monitors have also been honored by leading trade publications, including PC Magazine, and AOC do Brasil Monitores recently received the "Best Quality Award Brasil 2001."

"The quality of our products speaks for itself," says Chan. "We have earned the repeat business from many of our customers through our dedication to quality and service."

TPV/AOC Revenue Projections by Product


Monitor Size  FY01E  FY00

14"             96    85
15"            343   364
17"            426   338
19"            107    71
LCDs           191    12



SOURCE: JPMorgan

Note: Table made from bar graph
Worldwide Monitor Manufacturer Ranking


Rank  Company  Market Share
                       2000  2001 1H

1     SAMSUNG           17%      21%
2     TPV/AOC            9%      12%
3     PHILIPS            8%      10%
4     LG                10%       9%
5     LITEON             5%       5%
6     ACM                5%       4%
7     NMV                4%       4%
8     SONY               7%       4%
9     PROVIEW            4%       3%
10    DELTA              4%      3%0



SOURCE: TPV/AOC Marketing, CDT Suppliers, JpMorgan, August 2001
Worldwide Monitor Shipments by Monitor Size


           1999   2000  2001(F)  2002(F)

14"        9.3%   6.8%     3.5%     2.0%
15"       37.2%  33.5%    19.8%    11.5%
17"       41.6%  44.7%    51.0%    52.0%
19"        5.8%   7.6%     9.3%    11.0%
20"/21"    2.2%   2.0%     2.4%     2.5%
LCD        4.0%   5.3%    14.0%    21.0%
         100.1%  99.9%   100.0%   100.0%



SOURCE: MIC, Institute for Information Industry, August 2001