SEC Form 17-A: Annual Report - the solid group inc website

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2. Business of Issuer
Principal Products and Services
The consumer electronics business of the Company as of December 31, 2012 are:
(1) sale of mobile phones which generated sales of P3,836 million (for 2,985,764 units) or
97% of sales in 2012, P2,908 million (for 2,022,142 units) or 93% of sales in 2011 and P1,495
million in 2010 (for 739,721 units )or 92% of sales in 2010; and (2) after-sales service for
principally SONY brands of consumer electronic products and My|Phone with its 37 companyowned
service centers throughout the Philippines and 122 independent authorized service centers
as of end of 2012 which generated service income of P203 million or 32% of service revenues in
2012, P204 million or 30% of service revenues in 2011 and P203 million or 29% of service
revenues in 2010; and (3) warehousing, distribution and product testing of consumer electronic
products with service revenue of P116 million or 18% of service revenue in 2012, P84 million or
12% of service revenues in 2011 and P51 million or 7% of service revenues in 2010 and (4)
subcontract or toll manufacturing of color TV sets for other brand owner (i.e. TCL) which
generated tolling fee of nil in 2012 and 2011 and P10 million in 2010 (for 47,959 units) or 2% of
service revenues;
Solid Broadband Corp. owns and operates a broadband cable infrastructure, which provides
broadband multimedia services such as data transport services, high-speed cable internet access,
VSAT, broadcast uplink, leased line services and other multimedia services. The broadband
multimedia business reported revenues of P156 million in 2012 or 25% of service income, P374
million in 2011 or 55% of service income in 2011 and P391 million in 2010 or 56 % of service
income in 2010. As mentioned above, SBC sold its wired and satellite assets and
broadband/internet subscriber base on May 11, 2012. After the sale of its assets, SBC remaining
business was acting as collecting agent of Sky Cable Corporation until the SBC’s clients are
transferred to the latter. Sky Cable Corporation also assumed to pay all cost and expenses in
connection with use and operation of the assets. Revenues arising from this activity amounted to
P91 million in 2012 or 14% of service revenues (nil for 2011 and 2010.)
The Company’s other business activities are: the development and sale of industrial estates in
joint venture with Samsung Corporation of Korea, the development of residential condominium
for sale and the development and lease of other real estate properties, sale of prefabricated
modular houses, and sale of broadcast/professional equipment and accessories.
The Company’s products are sold in the Philippines. Revenues for the last 3 years, are as
follows: broadcast/professional equipment and accessories of P82 million or 2% of sales in
2012, P182 million or 93% of sales in 2011 and P112 million or 7 % of sales in 2010;
prefabricated modular houses of P39 million in 2012 and P13 million in 2011 (nil in 2010).
Real estate sales amounted to P99 million or 2% of revenues in 2012, P126 million or 3% of
revenues in 2011and P207 million or 8% of revenues in 2010.
Distribution
The broadcast/professional equipment and accessories is also sold directly to its corporate clients
such as broadcast stations.
The Company distributes through its subsidiaries consumer electronic products and devices in the
Philippines. The MyPhone brand is distributed by MySolid Technologies and Devices
Corporation. As of December 31, 2012, MySolid supplied approximately 343 dealer accounts.