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Company General Information

Headquarter	: Nakagawa Electronics Limited

Tel	: (852) 2389-9201
Fax	: (852) 2341-0001

First Factory	: Nakagawa Electronics (Suzhou) Limited
Address	: Middle Suhong Road, Suzhou Industrial Port, Jiangsu, China

Established in 1984, Nakagawa Electronics Ltd is a privately-run, locally-owned crystal components company based in Hong Kong. Its products include crystal oscillators, quartz crystals, surface-mount crystals and ceramic resonators.

The company has managed to sustain a 25 percent growth in the last few years. It expects to maintain the same growth trend in the next two to three years. The company also expects prices to remain unchanged throughout 2005.

Nakagawa caters largely to the local market, which accounts for 70 percent of its business. The company also offers OEM services, mostly to international clients from Japan and the United States. Products sold under its own brand name account for 80 percent of its total sales.

In 2004, its export revenue reached $14.5 million. For 2005, the company expects its export value to reach $16 million, and in 2006, it estimates its export revenue to total $17.5 million. Overall, the company projects its exports to increase by 12 percent in 2005.

To promote its products and services to the international market, the company participates in exhibitions like the Electronic Asia in Hong Kong.

Manufacturing Capability

Nakagawa operates production facilities in mainland China - in Suzhou. Suzhou facility measures about 10,000 square meters. The company has about 450 employees.

Nakagawa has a total of 42 production lines. Some of the company’s manufacturing processes are outsourced. Among these processes include cutting, lapping, dimensioning the blank and etching. On the other hand, processes done in-house include mounting and gluing, plating, sealing, initial crystal testing, aging and final crystal testing.

Operating at 80 percent its production capacity, Nakagawa’s monthly capacity is at 10 million units. The company plans to further expand its production capacity as demand is expected to increase. It estimates that its production will increase by 15 percent in 2005.

Nakagawa plans to put up a new SMD 5032 production line in the next 6 to 12 months. It invested $1.3 million in production equipment in 2004.

Quality Standards

Nakagawa’s production facilities have received ISO 9001 and ISO 9002 approvals. To satisfy requirements of its international customers, the company has also been ISO 14001-, and RoHS- certified.

Nakagawa sources its raw materials both locally and abroad. The company chooses its raw materials based on the AQL standards.

Throughout its production lines, the company deploys more than 100 QC checkers. Before products are packaged, they go through full quality checks, and before shipment, packaged products undergo FQC.