|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 [email protected] Maggie Au +852 2864 4815 [email protected] Agnes Luo +852 2864 4851 [email protected] Fax: +852 2527 1196 / 2804 2789
Copyright 2014 ACN Newswire. All rights reserved.
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Oct. 7, 2015 03:00 AM EDT Reads: 388
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Oct. 7, 2015 03:00 AM EDT Reads: 361
The cloud has reached mainstream IT. Those 18.7 million data centers out there (server closets to corporate data centers to colocation deployments) are moving to the cloud. In his session at 17th Cloud Expo, Achim Weiss, CEO & co-founder of ProfitBricks, will share how two companies – one in the U.S. and one in Germany – are achieving their goals with cloud infrastructure. More than a case study, he will share the details of how they prioritized their cloud computing infrastructure deployments ...
Oct. 7, 2015 03:00 AM EDT Reads: 687
NHK, Japan Broadcasting will feature upcoming @ThingsExpo Silicon Valley in a special IoT documentary which will be filmed on the expo floor November 3 to 5, 2015 in Santa Clara. NHK is the sole public TV network in Japan equivalent to BBC in UK and the largest in Asia with many award winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology covering @ThingsExpo Silicon Valley. The program will be aired during the highest viewership season of ...
Oct. 7, 2015 02:45 AM EDT
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
Oct. 7, 2015 02:00 AM EDT Reads: 506
Recently announced Azure Data Lake addresses the big data 3V challenges; volume, velocity and variety. It is one more storage feature in addition to blobs and SQL Azure database. Azure Data Lake (should have been Azure Data Ocean IMHO) is really omnipotent. Just look at the key capabilities of Azure Data Lake:
Oct. 7, 2015 02:00 AM EDT Reads: 246
Decisions about budgets and resources are often made without IT even having a seat at the table. As technologist we understand the value of DevOps - but do your business counterparts? If they don't, your DevOps initiatives could lose funding before they start. In her session at DevOps Summit, Jeanne Morain, Strategist / Author at iSpeak Cloud, LLC, will provide insights on how to bridge the gap between business and technology leaders. Attendees will learn prescriptive guidance on balancing wor...
Oct. 7, 2015 02:00 AM EDT Reads: 583
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
Oct. 7, 2015 01:15 AM EDT Reads: 505
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
Oct. 7, 2015 12:45 AM EDT Reads: 123
Data loss happens, even in the cloud. In fact, if your company has adopted a cloud application in the past three years, data loss has probably happened, whether you know it or not. In his session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how common and costly cloud application data loss is and what measures you can take to protect your organization from data loss.
Oct. 7, 2015 12:00 AM EDT Reads: 502
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Oct. 6, 2015 10:00 PM EDT Reads: 659
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
Oct. 6, 2015 08:00 PM EDT Reads: 313
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Oct. 6, 2015 05:00 PM EDT Reads: 256
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
Oct. 6, 2015 04:40 PM EDT Reads: 111
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
Oct. 6, 2015 03:00 PM EDT Reads: 125