|By ACN Newswire||
|March 20, 2014 01:08 AM EDT||
- Revenue Surged 57.8% to HK$404.9 million Compared to 1H2013 and Net Profit at HK$36.2 million
- FY2013 Full Year Revenue at HK$661.5 million
- Continues to Gain Market Share in the optical component market
- Diversified to Automation Business for Sustainable Growth
Hong Kong, Mar 20, 2014 - (ACN Newswire) - O-Net Communications (Group) Limited ("O-Net Communications" or the "Group") (stock code: 877), a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications networking systems, achieved profitable results for the year ended 31 December 2013 ("FY2013").
The Group achieved business turnaround in the second half of 2013 ("2H2013") as the global telecommunications market gradually recovered. Revenue of 2H2013 was HK$404.9 million, representing a 57.8% rise compared to the first half of 2013. The growth was mainly attributable to the Group's efforts in strengthening leadership in the optical component market through enhanced coverage of key customers, as well as revenue contribution from the new automation business. 2H2013 gross profit margin rose to 33.5% (1H2013: 29.6%). The Group also returned to profitability during 2H2013 with a net profit of HK$36.2 million, thus it was able to achieve a profitable annual results.
For FY2013, the Group's revenue totaled HK$661.5 million (2012: HK$727.4 million), with gross profit margin at 32.0% (2012: 41.3%) as the Group adopted a competitive pricing strategy for its products. Profit attributable to equity holders was HK$13.4 million, while non-GAAP net profit was HK$30.2 million.
The Group's cash position remained strong with more than HK$456.9 million in cash as at 31 December 2013, as it maintained a strong operating cash inflow of HK$37.3 million during FY2013.
Mr Austin Na, Co-Chairman and CEO of O-Net Communications, said, "We are glad to see that O-Net has grown stronger during the year against the volatile market conditions. The group continued to enhance R&D capability for a strong product pipeline including next-generation active products for telecoms and data-communications markets, and our market share continued to grow. At the same time, we have tapped into automation business which has achieved initial success and generated revenue contribution. We are in a better position to capture market opportunities arising."
Strengthened R&D Capability for Next Generation Optical Networking Products. The Group continued to invest in R&D to ensure sustainable growth of its core optical networking business. As a result of enhanced R&D efforts, new technologies were developed and a series of high-growth next-generation active products for telecommunications and data-communications markets are under development which expanded the Group's portfolio from traditional optical component market to cover access and datacom market by subsystems, active optical components and modules. The Group has also partnered with renowned overseas companies to facilitate the development such as partnered with VIS from Germany to develop proprietary high speed optical interconnects, and also cooperated with a Canadian company, ArtIC Photonics, Inc., to develop proprietary photonic integrated circuit chips.
Automated New Plant Ensures Higher Efficiency and Capacity. The Group has established a new manufacturing facility in Pingshan, Shenzhen with an area of 100,000m2. The highly automated new plant not only enhanced the operational efficiency, but also provided more capacity to support new business development such as automation.
Seize the Huge Opportunities in Automation Industry. Commenced in 2012, the automation business has started to contribute revenue of HK$7.5 million in FY2013 with a satisfactory gross profit margin of 39.5%. The Group has started to deliver customized high value-added automation equipment to electronic cigarette, mobile phone and home appliance manufacturers. In addition, the automation business division has developed automation equipment for producing heating coils and began to supply the heating coils produced by these equipment to the electronic cigarette makers in China from the last quarter of 2013. As a results, the Group has quickly established itself as a leading supplier of automation solutions for the electronic cigarette manufacturers in one-year's time.
Optical Networking Business on Fast Track Riding on Bright Industry Outlook. The optical components market is expected to reach its historic peak at US$10.5 billion in 2018. This is driven by the continued strong demand for 40G and 100G components and modules to support increasing data traffic and new cloud-based service opportunities. Strong market outlook favors the growth of O-Net as a key industry player. Leveraging its core strengths in R&D capability and world-class talents, the Group will start to deliver a series of high-growth next-generation active products for telecom and data-com markets within 2014 to further strengthen its market leadership and boost margins.
Diversification Fuels Business Growth. The Group is positive that the automation business will continue to grow as the domestic manufacturing industries are in transition to cope with rising labour costs and recruitment difficulties. It generated great demand for automation equipment delivering high value. The Group will continue to dedicate resources on identified industries, as well as to develop standard products for different automated production systems with intelligence camera in the pipeline. In addition, apart from supplying heating coils, the Group also aims to become a leading supplier of components and automation solutions in the electronic-cigarette industry as the potential size of the electronic cigarettes market is anticipated to reach more than 10% of the total tobacco industry by 2020, which shall help drive the Group's business growth in the near future.
At the same time, following the set up a joint venture with OPDI Technologies A/S, the Group will explore opportunities in the fast growing touch panel business.The first-generation sample touch panel is expected to be completed by 2014 and the joint venture is anticipated to generate income from overseas customers this year. Together with other potential areas, the Group is confident that new businesses will help to broaden income stream and improve profitability in the near future as well as in the longer term.
Mr Na concluded, "Looking forward, we will continue to bolster our efforts to develop innovative products with an aim to enhance O-Net's competitiveness in the optical networking industry. Meanwhile, with the initial success in the automation business, we will dedicate more resources in identified high-growth market segments, targeting at a well diversified revenue structure. Through innovation and diversification, the Group's business will achieve sustainable and balanced growth for the best interest of our shareholders."
About O-Net Communications (Group) Limited
O-Net Communications (Group) Limited, with headquarters in Shenzhen, was listed on the Stock Exchange of Hong Kong Limited on 29 April 2010. It is a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications network systems. To broaden the product offerings through innovation and diversification, the Group started the research and development ("R&D") of certain active optical networking products used in the next generation telecommunication and data-communication systems. The Group has a high quality client base including Alcatel-Lucent, Huawei as well as contract manufacturers to Ciena and Infinera. Building on its unique vertically integrated business model, the Group designs, manufactures and delivers cost-competitive customised products and solutions based upon individual customers' product needs and specifications. Apart from strengthening the core optical networking businesses, the Group adopted a new strategy "Diversity for Growth" and identified certain new businesses included automation and touch panel with an aim to become a leading high-tech company.
Source: O-Net Communications (Group) Limited
Strategic Financial Relations Limited Heidi So +852 2864 4826 firstname.lastname@example.org Maggie Au +852 2864 4815 email@example.com Agnes Luo +852 2864 4851 firstname.lastname@example.org Fax: +852 2527 1196 / 2804 2789
Copyright 2014 ACN Newswire. All rights reserved.
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
Mar. 30, 2017 02:45 PM EDT Reads: 931
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Mar. 30, 2017 02:45 PM EDT Reads: 3,975
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 30, 2017 02:45 PM EDT Reads: 2,402
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Mar. 30, 2017 02:00 PM EDT Reads: 8,993
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Mar. 30, 2017 01:58 PM EDT
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 30, 2017 01:45 PM EDT Reads: 2,362
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Mar. 30, 2017 01:45 PM EDT Reads: 546
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 30, 2017 01:45 PM EDT Reads: 1,869
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
Mar. 30, 2017 01:45 PM EDT Reads: 3,179
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Mar. 30, 2017 01:15 PM EDT Reads: 957
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 30, 2017 12:00 PM EDT Reads: 2,703
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 30, 2017 11:15 AM EDT Reads: 3,599
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Mar. 30, 2017 10:45 AM EDT Reads: 1,113
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Mar. 30, 2017 10:45 AM EDT Reads: 2,968
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 30, 2017 10:30 AM EDT Reads: 1,901