SHARE PLACEMENT

On 24 February 2006, the Company entered into certain placing agreements under which 106,500,000 existing ordinary

shares in the Company were placed at a price of HK$9.00 per share (the "Placing Price") and the Company subsequently

issued 106,500,000 new ordinary shares (the "New Shares"). The net proceeds of approximately US$121 million were

used for expansion of the Company?s LCD business, maintenance of capital expenditures and general working capital.

The Placing Price represented a discount of approximately 6.74% to the closing price of HK$9.65 per share as quoted

on The Stock Exchange of Hong Kong on 24 February 2006. The New Shares represented approximately 5.92% of the

issued share capital of the Company prior to the placement.

BUSINESS REVIEWBUSINESS REVIEW

World economy remained sanguine in the first half of 2006. However, fears of inflation continued to push global interest rates higher, unnerving the already turbulent financial markets. New worries of escalating hostilities in the Middle East kept energy cost at record high levels and consumer sentiment in check.

Against this backdrop, the decline in LCD panel prices accelerated in the traditionally weaker first half of the year. Monitor panel prices dropped 20 to 25 percent on average vis-a-vis TV panels? steeper fall of 30 to 35 percent, across the board. Despite the cyclical downturn in panel prices and the seasonal deceleration in end-demand, TPV maintained its healthy stride in top and bottom line growth by gaining shares in both monitor and TV markets. For the six months ended 30 June 2006, TPV?s consolidated turnover surged 78.0 percent to US$3.3 billion with profit attributable to equity holders rising 14.4 percent to US$74.1 million. Profitability for the period was negatively affected by the tougher pricing environment and the gradual shift of product-mix from higher-margin CRT monitors to lower-margin LCD monitor and TV products. Consequently, blended gross profit margin declined 90 basis points year-on-year to 5.4 percent. Net profit margin was further impacted by the higher cost of borrowings and declined to 2.3 percent from the 3.5 percent achieved during the first half of 2005.

During the period under review, TPV shipped a total of 11.8 million units of LCD monitors and 6.7 million units of CRT monitors, translating to a year-on-year growth of 70.4 percent and 43.8 percent respectively. In the fast growing flat TV business, the Group recorded a shipment of 0.9 million units, representing a ten fold increase over the corresponding period in 2005.

In terms of geographical contribution, North America remained the largest market for TPV, accounting for 33.8 percent of the consolidated turnover in the first half. In China, TPV maintained its position as the largest monitor supplier in the country, commanding over 40 percent of the market share. Consequently, China accounted for 21.7 percent of the consolidated turnover, slightly behind Europe?s 22.2 percent. The Group has also made significant inroads into the highly competitive Japan market. Revenue contribution in the first six months of 2006 doubled that of the same period last year to reach US$247 million or 7.6 percent of the consolidated turnover.

R&D plays a key role in the success of TV business. The quick integration of the acquired Philips? R&D platform has greatly enhanced the Group?s TV development capability and know-how. The combined R&D unit enables the Group to speed up the development cycle, shorten the time-to-market of a wider spectrum of TV models, increase productivity and drive down production costs. In addition, the ERP platform leased from Philips had been fully localized, ahead of schedule and within budget, overcoming a major hurdle and eliminating an important transitional cost.

TPV continued to optimize its production capacity and efficiency. The production site at Dongguan was totally shut down at the end of the first quarter and its lines and equipment transferred to other production plants. The production facilities at Suzhou, which were previously housed in two separate factory buildings, have been realigned and merged into a single plant to focus on the production of flat TVs.

PROSPECTS

At the industry level, the cyclical bottom in monitor panel prices was reached in June this year. From there, the longexpected signs of recovery in demand for and prices of monitors, and hence TFT-LCD panels, were evident. Demand for monitors has picked up strongly since July as channels have begun to stock up for the peak season of the year.

Consequently, monitor panel prices have, on an average, gone up by 10 to 15 percent in the first two months of the third quarter. LCD TV demand has also gained momentum as the current price appear very attractive to consumers in the more affluent developed countries.

Global flat TV shipment is projected to reach 52 million units in 2006 and 75 million units in 2007. Cost pressure will trigger more branded TV makers to outsource production in order to stay competitive, which augurs well for TPV who is well positioned to ride on the outsourcing boom. This trend, coupled with a stronger than expected TFT-LCD monitor shipment and improving operating environment, would hopefully lead to better margins in the second half of the year.

The successful integration of Philips contributed business will continue to propel market share, reinforcing TPV?s pole position in the global monitor and TV markets. TPV has moved up from the eighth to the sixth position among the global LCD TV makers. We believe that the extensive geographical reach, scale economies and technology expertise built over time will continue to benefit the Group?s profitability.

TPV continues to take steps to rationalize costs. The Group has started ramp up a number of key components in-house, such as Low Voltage Differential Signal Wire (LVDS), mechanical hinges, transformers and toolings. These will lead to not only cost savings but also higher flexibility to meet the Group?s quantity and quality requirements.

Secondly, we have been gradually rationalizing outside suppliers to achieve greater volume discount, particularly on expenses relating to logistics. In addition, the two Liquid Crystal Display Module ("LCM") plants are on track to meet the 5 million output target.

The enormous growth in public advertising and information display has boosted the demand for high quality, largesized monitors. The Group will introduce an extensive range of wide format monitors (16:9) to meet the growing demand in this area.

In February 2006, the Group raised approximately US$121 million (net proceeds) through a top-up placement of 106.5 million new shares for working capital and capital expenditure. The Group plans to set up a production plant in Eastern Europe to stay ahead of competition. The establishment of a new production plant in Eastern China is also on the cards; the construction is expected to be completed by the end of next year.

TPV?s unwavering focus on improving top and bottom lines in every market, combined with the Group?s cost saving initiatives, would lead to more market share gains as demand picks up and outsourcing trend gains momentum.