Solid Group Inc., the listed holding company of the Lim family, has set aside up to P1.5 billion in capital expenditure this year, mainly for the benefit of mobile phone maker My|Phone.
After the firm’s annual stockholders’ meeting last week, President David Lim told reporters that the bulk or P1 billion of the expenditure will go to My|Phone.
The 2015 capex compares with the P1.2 billion budget last year.
Lim sees “a turnover to profit this year” from the net loss incurred last year as the My|Phone maker has changed its distributor.
“[The net loss] was just because of switching our distributor. Because our previous one had recently established their own mobile phone brand. But now we found another distributor. Also, because of the stronger marketing programs for our mobile phone business we can surely see a turnover to profits this year.
“We plan to be the top mobile phone brand for the Filipino masses, from our current standing being the third largest,” he added, noting the My|Phone brand is behind Samsung and Cherry Mobile in the mass market category.
For the whole of 2014, the company recorded a net loss of P188 million from a P145 million net income in 2013, largely due to the losses incurred by mobile phone maker and the property business, apart from the lower sales posted by the support, services and other businesses.
The bulk of the company’s sales and profits come from its mobile phone business.
Banking on the prospects for growth in the areas of Alabang to Laguna, Lim said the group is looking at developing residential towers for dormitory and bed space leasing in the south of Metro Manila for its property business.
The group as a whole is focusing on the “masa” market despite the growing and focus of the industry on the mid- to high-end markets.
Lim said the goal is to provide the Filipino masses with affordable product lines from mobile phones to real estate.
Last May, Solid Group sold a 31,423.50 square meter office building in Balintawak, Quezon City for P1.23 billion and kept the proceeds of the sale as cash to fund future activities.