SMIT Announces 2017 Annual Results Profit Increases by 48.0% to USD11.1 Million
26 Mar, 2018, 09:31 ET
Diversified operations perform brilliantly – New businesses boost growth
- Benefiting from the new businesses of O2O smart terminals and blockchain servers, revenue of the Group increased by 55.3% to USD91.8 million and profit surged 48.0% to USD11.1 million
- The CAMs business recorded stable performance in general. Orders from the European markets increased significantly, attributable to economic recovery across the region. Most emerging markets, including India, also reported year-on-year growth in sales volume
- mPOS product business secured prominent customers such as Calliance Payment and CNEPay.com, which substantially enhanced market recognition of the Group's products
- The blockchain chipset and server business has made considerable revenue contributions to the Group during the Year, accounting for approximately 42.5% of the Group's total revenue
- The Group has recently invested in an advanced IC design company in Shenzhen that specializes in main control chips for flash memory, and a US company with expertise in advanced touch solutions. The Group will capitalize on its rich experience in the payment and security industry to extend to the IC-based security core business
Hong Kong, March 26, 2018 /PRNewswire/ -- SMIT Holdings Limited ("SMIT" or the "Company," together with its subsidiaries, the "Group") (stock code: 2239), a global leading CAM supplier and a leading mPOS device supplier in China, announced its annual results for the year ended December 31, 2017 (the "Year"). Owing to the brilliant performance of its diversified operations and effective strategic deployment, the Group performed remarkably during the Year, with profit rising by 48.0% to USD11.1 million.
For the Year, revenue of the Group amounted to USD91.8 million (2016: USD59.1 million), increased year-on-year by approximately 55.3%. Gross profit margin was 35.4%. Basic earnings per share amounted to US 3.7 cents (2016: US 2.7 cents). During the Year, the Group continued to maintain a healthy financial position with sufficient liquidity. As at December 31, 2017, cash and cash equivalents of the Group amounted to USD 84.1 million. The Group has no debt for the Year. The Board has proposed the payment of a final dividend of HK 2 cents per share (2016: HK 1.5 cents).
Over the past financial year, the Group's CAMs business performed in a stable manner. Sales revenue amounted to approximately USD36.8 million and accounted for approximately 40.1% of the Group's total revenue. Orders from the European markets increased significantly, due to recovery in the economies across the region. Most emerging markets, including India, also reported year-on-year growth in sales volume. Other regions, including Russia and China, were still at early stages of development. Sales revenue from mPOS devices amounted to USD14.8 million, and accounted for approximately 16.1% of the Group's total revenue. Having achieved technological advancements in the first half of 2017, the Group's products became more competitive during the second half year and secured prominent customers such as Calliance Payment and CNEPay.com, which led to greater market recognition of the Group's products.
In respect of the Group's new businesses, sales revenue of the O2O smart terminals business amounted to USD1.2 million, accounting for about 1.3% of the Group's total revenue. The Group provided smart terminals for a Shenzhen-based one-stop cross-border e-commerce company utilizing its extensive experience and technologies in the POS field. The blockchain chipset and server business has made considerable revenue contributions, totaling USD39.0 million during the Year, and accounting for approximately 42.5% of the Group's total revenue. Looking ahead, the Group will continue to focus on development of blockchain technologies.
In addition to its existing businesses, the Group has also engaged in strategic investments. Recently, it has invested in an advanced integrated circuit design company based in Shenzhen that specializes in main control chips for flash memory and a US company with expertise in advanced touch solutions. The Group will draw on its rich experience in the payment and security industry to extend to the IC-based security core business and build a comprehensive global industrial network.
With gradual recovery of the global economy, the Group will continue to capture opportunities around the world, utilize its leading position and tie with industry partners and broadcast operator customers to develop more new projects and new products so as to meet the demands of customers from different markets. As a main supplier of mPOS devices in China, the Group will continue to develop new products to meet diverse market demand and support different payment methods and to develop relations with new customers both domestically and overseas. The mPOS business is expected to stabilize and grow in the future. Regarding the new O2O smart terminals business and blockchain server business, the Group will adjust relevant business strategies in 2018 to further consolidate its own business resources and technologies and explore more application possibilities.
Mr. Shuai Hongyu, President of SMIT, said, "We are pleased to see that the Group has achieved a new development milestone. While actively exploring growth opportunities with our existing businesses, we are also developing a new business with high technology barrier and bright prospects. By implementing initiatives to create income streams, reduce costs and further optimize internal controls to improve operational efficiency, the Group is set to advance to the next level. Going forward, we will continue to look for and to invest in companies of strategic significance. We believe that by cooperating with these companies, the Group will create business opportunities as well as consolidate its position as a technological leader in the industry."
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About SMIT Holdings Limited (Stock code: 2239)
SMIT Holdings Limited is a leading security devices provider for pay TV broadcasting access worldwide and for mobile point-of-sale, or mPOS, payment systems in China. The Company's main product types are CAMs, mPOS devices, O2O smart terminals business and integrated blockchain chipset and server business.
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