|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.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Sep. 24, 2016 04:30 PM EDT Reads: 1,661
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 24, 2016 04:30 PM EDT Reads: 1,471
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 24, 2016 04:15 PM EDT Reads: 1,526
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Sep. 24, 2016 04:00 PM EDT Reads: 1,475
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 24, 2016 03:45 PM EDT Reads: 1,394
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 24, 2016 03:00 PM EDT Reads: 1,012
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 24, 2016 02:15 PM EDT Reads: 1,178
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 24, 2016 02:00 PM EDT Reads: 1,615
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Sep. 24, 2016 01:30 PM EDT Reads: 1,667
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Sep. 24, 2016 01:00 PM EDT Reads: 1,465
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 24, 2016 12:00 PM EDT Reads: 724
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 24, 2016 12:00 PM EDT Reads: 722
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 24, 2016 11:45 AM EDT Reads: 1,014
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 24, 2016 11:15 AM EDT Reads: 1,441
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
Sep. 24, 2016 11:00 AM EDT Reads: 940