HONG KONG and WEIHAI, China, March 14, 2011 /PRNewswire-Asia/ --
- Revenue increases 62.1% to RMB 1.41 billion
- Gross profit climbs 64.5% to RMB 325.6 million
- Basic EPS rises 65.1% to RMB 27.9 cents
HL Technology Group Limited ("HL Technology Group" or the "Company", together with its subsidiaries the "Group", stock code: 1087), a leading one-stop signal transmission and connectivity solutions provider, announced its annual results for the 12 months ended 31 December 2010.
Financial and Operations Overview
Basic EPS (RMB cents)
HL Technology Group recorded excellent performance in year 2010 with turnover of RMB 1.41 billion, representing a growth of 62.1% when compared to 2009. Gross profit grew by 64.5% to approximately RMB 325.6 million. Net profit increased by nearly 75.1% to RMB155.0 million. Basic earnings per share were RMB 27.9 cents. The Board of Directors did not recommend payment of dividend for the year ended 31 December 2010.
Riding on the recovery of the global consumer electronics industry, strong R&D capabilities, cost advantages, and a stable and high-end customer base, the Company has made great strides going forward. The group's six major types of products: external signal cable assemblies, power cord assemblies, internal signal cable assemblies, wires & cables, connectors and antennae -- all experienced strong order growth with 9.6%, 142.5%, 45%, 102.4%, 28.5% and 149.4% revenue increases respectively.Net Profit increases 75.1% to RMB 155.0 million.
The Company's net profit margin was approximately 11.0% for the year ended 31 December 2010 as compared to approximately 10.1% for the year ended 31 December 2009. The increase in net profit margin was primarily attributable to a decrease in operating expenses as a percentage of total revenue as the company focused on cost controls and achieved cost savings on the company's administrative and general expenses and distribution, resulting in a decrease of such expenses as a percentage of total revenue in 2010 as compared to 2009.
Favorable market growth rate coupled with continued product innovation and focus on increasing market share have enabled the Company to maintain sustainable growth. According to Frost & Sullivan, the global consumer electronics market is expected to grow from approximately USD $681 billion in 2009 to more than USD $1,061 billion in 2013, reflecting a CAGR of 11.7% from 2009 to 2013. And the Chinese consumer electronics market will grow even faster, from approximately USD $78 billion in 2009 to more than USD $127 billion in 2013, reflecting a CAGR of 13.2% from 2009 to 2013.
To enhance competitive edge, the Group will continue to commit resources to research and development and will also focus the company's sales and marketing activities to strengthen its existing customer base and accelerate the penetration of the various industry segments.
The Company also has new signal transmission and connectivity related products in the pipeline at different stages of development which target other industries beside consumer electronics. This includes automotive wiring harnesses (the market of which the company have entered through acquiring a 55% stake in a PRC automotive wiring harness company in Feb 2011), specialty power cables and photovoltaic connectors. These new products are expected to contribute to the Group's revenue in 2011.
By expanding the product range, variety and production capacity, the Group is able to continuously improve its leading position and expand its market share as well as gradually penetrate new markets such as the automotive and new energy sectors. Building on the company's existing strength in providing signal transmission and connectivity solutions, the Group will strive to achieve new breakthroughs in these new sectors. The Group believes the new markets and new products will be the Group's key growth drivers over the next 1–3 years.
"HL Technology Group is currently a strategic signal transmission and connectivity solutions provider to many international first-class consumer electronics firms. Relying on our strong R&D capabilities, our competitive pricing advantages, a solid and stable customer base, and a rapidly expanding international sales & marketing network, we are increasingly able to demonstrate our one-stop solutions advantage for our customers."
"Going forward, we will continue to strive to increase our market share for our existing products and at the same time, enter into new markets and industries by leveraging on our existing signal transmission and connectivity solutions strength."
Mr Chi Shaolin, Chairman and CEO
HL Technology Group Limited
HL Technology Group is a "one-stop" provider of signal transmission and connectivity solutions and related products, offering a broad and comprehensive range of cable assembly and connector related products currently focusing on the global high-end consumer electronics industry. HL Technology Group enjoys a global leading market share for several of its key products in the global high-end consumer electronics industry including external signal cable assemblies, notebook internal signal cable assemblies, power cord assemblies and signal transmission wires & cable products.
The Group boasts a solid and diverse customer base in the global consumer electronics industry and has been selected as a core supplier by many reputable global equipment manufacturers including Samsung, LG, Eastman Kodak, Amphenol, ZTE, Haier, Hisense, Quanta, Compal, Qisda, TPV Technology, Wistron, Innolux, and Inventec.
HL Technology Group is listed on the Hong Kong Stock Exchange (HKEx ticker 1087).
For more information, please visit http://www.hong-lin.com.cn
Aries Consulting Ltd.
Mr Terence Wong/ Mr Kent Lo
Mr Mark Lee
Investor Relations Consultants
Tel: +852-2610-0846 / Fax: +852-2610-0842
HL Technology Group Limited
Mr Li Jianming
Tel: +86-631-367-8523 / +86-631-367-8588
SOURCE HL Technology Group Limited