XI'AN, China, Jan. 23, 2014 /PRNewswire-FirstCall/ -- Kingtone Wirelessinfo Solution Holding Ltd (KONE) ("Kingtone", "we" or the "Company"), a China-based developer and provider of mobile enterprise solutions, today announced that the Company and its employees received five awards from its wireless system development work for the Company's largest client, Hualu Engineering & Technology Co., Ltd. ("Hualu"). The awards were issued by Hualu to recognize the excellent work accomplished by Kingtone and its employees.
Together with other two rival contractors, the Company got recognized as Hualu's "2013 outstanding contractor" and "2013 best practitioner of quality control", out of numerous vendors and contractors, who participated in the construction and development of Jingbian Industrial Park where Hualu is currently building one of the few largest coal chemicals production facilities in China. Among the five awards, the Company's wireless project team also received separate three awards in recognizing their excellence in project management, quality control, and providing wireless solutions in the coal facility's enterprise management.
Hualu, a state-owned enterprise in China, is one of the country's largest construction companies in providing all-around engineering construction services mainly in the chemical industry. Formerly known as the Sixth Design Institute of the Ministry of Chemical Industry, Hualu is an engineering firm with Class A Comprehensive Design Qualification for all industries and specialized Class A certificates in specific sectors.
More information about Hualu is available at Hualu's official corporate website of the following address:
During the last 40 years since it was established, Hualu has successfully completed over one thousand large and medium-sized projects, designed more than 200 products and over 100 new technologies. Hualu got the State Council, Orders of the central military commission and national, provincial awards many times for its major contribution to the construction of the nation's chemical defense industry, large chemical industry base and large-scale chemical fertilizer.
On September 15, 2012, the Company entered into an agreement with Hualu to provide wireless system service to Hualu's coal chemical factory in Jingbian Energy and Chemical Projects and Comprehensive Utilization of Industrial Park in Shaanxi, China ("Jingbian Industrial Park"). Pursuant to the agreement, the Company shall provide engineering services to Hualu's coal chemical factory in Jingbian Industrial Park, including installation, debugging and initial training of the staff operating the tank, engineering instruments and telecommunications
The contract with Hualu contributed RMB63.6 million, or approximately $10.2 million revenue to the Company in the fiscal year of 2013, accounted for approximately 88.2% of our total sales during this period.
It is known that the market for software products and IT services, including wireless IT application products and solutions, is highly competitive and subject to rapid changes in technology. As we demonstrated in our FY2013 financial report on January 17, 2013, (the Company has gone through a difficult time from FY2011 to FY2013. In fiscal year 2013, the company incurred a net loss of $5.1 million, compared to net loss of $9.0 million and $1.0 million in fiscal year 2012 and 2011 respectively. Given the competitive circumstances, we devoted more resources into communicating with some major customers.
"The company noticed that the company's share price has been volatile significantly recently," said Mr. Peng Zhang, Chief Executive Officer of the Company, "thanks for investors' support and confidence in the company's performance. However, the company is involved in a very competitive market and is still working on strengthening our business model to achieve sustainable growth. We hope our investors are still with the company's business and invest in the company on the long-term perspective."
About Kingtone Wirelessinfo Solution Holding Ltd
Kingtone Wirelessinfo Solution Holding Ltd (KONE) is a China-based developer and provider of mobile enterprise solutions. The Company's products, known as mobile enterprise solutions, extend a company's or enterprise's information technology systems to include mobile participants. The Company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, to improve efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions is proprietary middleware that enables wireless interactivity across many protocols, devices and platforms.
For more information, please visit Kingtone's website at http: www.kingtoneinfo.com. The Company routinely posts important information on its website.
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