Man Yue Electronics: Experiencing Rapid Growth in a Mature Market

By Dennis M. Zogbi, President, Paumanok Publications, Inc.

Man Yue Electronics Company Limited, of Chai Wan, Hong Kong in the People’s Republic of China, produces aluminum electrolytic capacitors in five separate configurations. These include radial leaded, axial leaded, surface mount V-chip, screw terminal, and snapmount versions, which are sold primarily in greater China under the Samxon® brand name.

Man Yue Aluminum Electrolytic Capacitor Products:

• Radial Leaded Aluminum Capacitors
• Axial Leaded Aluminum Capacitors
• Aluminum Capacitors
• Screw Terminal Aluminum Capacitors
• Snap-Mount Aluminum Capacitors

Forty-Nine Percent Year-over-Year Growth in Revenues Between 2003 and 2004 Man Yue Electronics reported an increase of 49% in aluminum electrolytic capacitor sales value in one year, with revenues growing from $86 million USD in 2003 to $128 million USD in 2004. This year, 2005, also shows increased year-over-year revenues in aluminum electrolytic capacitors.

The growth of Man Yue is fascinating because most other top tier suppliers are experiencing only 5% or 10% growth for the year, while Man Yue has distinguished itself with growth rates nearing 50% year-over-year.

Revenues by World Region: 2004
In 2004, approximately 78% of aluminum electrolytic capacitor revenues for Man Yue Electronics came from sales to greater China, which includes the People’s Republic of China, Hong Kong, and Taiwan. An additional 13% of revenues was sourced to other Asian countries outside of greater China, while only 9% of revenues came from North America and Europe combined.

Rapid Growth across the Board on a Region-by-Region Basis: 2003-2004
Man Yue Electronics reported rapid growth in all world regions in 2004, with sales into Taiwan increasing by a whopping 96% year-over-year, going from $25 million in revenues in 2003 to $49 million USD in revenues in 2004. Growth in sales of aluminum electrolytic capacitors in mainland China also increased by 19% year-over-year for the company, growing from $42 million in revenues in 2003 to $50 million in revenues for 2004. This growth occurred while sales to other Asian regions increased by 31% year-over-year, growing from $13 million in 2003 to $17 million USD in 2004. Rapid growth was also recorded in sales to the West (USA and Europe), which increased by 71% year-over-year, from $7 million USD in 2003 to $12 million in 2004.

Production Facilities and Capacity to Produce: 2004
Man Yue Electronics maintains three major production facilities for aluminum electrolytic capacitors in China. These include the Samxon Dong Guan plant, the Wuxi Heli Electronics plant, and the Man Yue Xiamen plant; the combined monthly output capacity is 520 million pieces per month, or 6.2 billion pieces per year. The Samxon plant in Dong Guan was established in 1994 and represents the largest production facility for the company, with monthly production capacity for aluminum electrolytic capacitors at 400 million pieces (4.8 Billion Pieces Annualized). The plant, which is located in the Xin An Industrial Area, employs 2,500 people and occupies 50,000 square meters. Man Yue’s Wuxi Heli Electronics plant, which also opened in 1994, is located in Wuxi, People’s Republic of China. It has a monthly production capacity of 80 million aluminum capacitors per month (960 billion pieces annualized).

Man Yue’s newest plant, which was opened in 2002, has monthly production capacity of 40 million aluminum electrolytic capacitors, or 0.5 billion pieces per year. The plant, occupying 2,300 square meters and employing 132 people, is located in Xiamen province, People’s Republic
of China.

Reasons for Growth in 2004 and 2005:
According to senior executives of Man Yue Electronics, their growth in 2004 and 2005 is directly related to the fact that they are a quality supplier in Mainland China to global EMS and OEM electronics firms. These firms are now asking the company to export to other customer locations throughout the world. The rapid growth of the company in Taiwan and in the West in 2004 and 2005 is directly related to this new phenomenon that is affecting other Chinese producers of quality product lines, both inside and outside the electronics industry.

Additional Resources: (1) Aluminum Capacitors: World Markets, Technologies & Opportunities: 2010-2015 ISBN # 0-929717-47-3 (8/2010) (2) CAPACITOR FOIL: Global Market Outlook: 2008- 2013 ISBN # 0-929717-85-6 (2008)