HONG KONG, Match 23, 2016 /PRNewswire/ --
Highlights
Ozner Water International Holding Limited ("Ozner Water" or "the Company") (HKEx stock code: 2014) and its subsidiaries ("the Group") announced its results for the year ended 31 December 2015. During the year, the Group recorded revenue of approximately RMB745.4 million (2014: approximately RMB511.7 million), which is mainly attributed to the growth of the water purification business. Gross profit recorded approximately RMB438.9 million (2014: approximately RMB334.7 million).
Excluding stock option expenses, loss in fair value of convertible bonds and other non-recurrent expenses, adjusted net profit recorded approximately RMB143.1 million (2014: approximately RMB190.2 million). During the year, the Group has enhanced efforts in building B2C platform, professional team and brand image; which has laid a solid foundation for rapid future growth.
The Board of directors does not propose any dividend for the year (2014: nil).
Business Review
During the year, revenue from the Group's water purification business was approximately RMB679.4 million, accounting for 91.1% of the total revenue for the year (2014: approximately RMB411.3 million, accounting for 80.4% of total revenue for the year). Revenue from air sanitization business was approximately RMB63.6 million (2014: approximately RMB100.4 million).
Riding on the leadership in the corporate market, the Group strived to expand its household market. Proportion of household models against total installation numbers significantly increased 7% to 34%. During the year, number of the Company's distributor increased by 1,216 to 3,648. Number of newly installed machines amounted to approximately 267,000 units, which made up the total accumulative installations to 925,000 units. Customer renewal rate was over 97%. The Group's service system, Ozner's sustainability pillars was also further developed. Its self-operated services system covered over 800 cities, counties and townships nationwide to provide users with installation and post-sales services.
Online to offline Interactive Platform
Ozner established an online to offline interactive platform and operation team during the first half of the year with iFamily APP as the core, and gained access to the vast number of employees of our corporate end users and other resources such as ''smart products'', ''public non-profit water bars'', ''experience stores'' and ''brand collaboration'' through Internet and social networks such as mobile applications and public WeChat account. The ''experience + word-of-mouth'' brand building and promotion marketing strategy helped us to rapidly develop a customer base of household purifiers, and the result was encouraging.
Diversify product mix
(1) For-sale Household Cabinet Style Purifier
To cater for the needs of different families, the Group launched its for-sale household cabinet style purifier. The Group believed that, for-sale models can be easily accepted by different market segments, and will help the Group to further expand in the household water purifier market. After-sales service will also ensure sustainable profit. The buy-out type of household purifiers launched in mid-2015 targeting the consumption habits of the Chinese consumers received an overwhelming response, with approximately 85,000 purifiers sold in just about six months.
(2) Household Air Purifier
The Group announced the launch of its whole new household smart air purifier at the end of 2015 to tackle the growing air pollution in the PRC. The purifier has employed industrial and medical grade air purifying technologies to efficiently purify air indoors, which is believed to better cater for the needs of families in the PRC.
(3) Smart Water Tap
In June 2015, the Group launched Smart Water Tap, its latest smart product. It offers functions such as monitoring water quality and users interactions through smart phone APP. With the advantage of low costs, Smart Water Tap rapidly penetrated Ozner Water's current distributors and customer network. It attracted huge traffic to the "Ozner iFamily" APP. These new members value drinking water safety and are thus the Group's potential customers.
Enhanced production capacity
In 2015, the Group's production capacity was further enhanced. Its production base in Qian County, Xianyang City, Shaanxi Province completed the phase II construction and will ramp up to full capacity in the second quarter of 2016. The facility's annual designed production capacity will be approximately 500,000 units.
Future Prospects
The Group will implement the following strategies in 2016:
1. Further improvement of the strategy of online-offline interaction, strengthening of software development and continuous development of water purification business
Ozner will continue to: (i) facilitate steady growth of distributor network, concentrate efforts in developing customers among schools, media to large chain enterprises and maintain leading position in the corporate markets; (ii) strengthen offline experience marketing by setting up smart cabinets and experience stores; (iii) enhance service quality, expand coverage and provide value-added services, and (iv) enlarge customer base and expand business scope through cooperation and equity participation with carefully screened targets
2. Development of air sanitization business
For the corporate sector, Ozner will focus in engaging high quality corporate customers in medical health industries. For the household market, the Group will continue to utilize its existing channels, and target at the changes in market demand to effectively develop the market.
Mr. Xiao Shu, Chairman and Chief Executive Officer of the Group said, "Looking forward into 2016, we are fully confident and motivated. It will be a critical year for the positioning and building of our brand and channels, and for Ozner to take the lead in the industry, which will lay a sound foundation for our sustainable growth in the future. We will push forward our development strategy to create greater value for our shareholders as well as the society."
About Ozner Water International Limited
OZNER's two business lines include water purification and air purification. Different from the traditional one-time sales mode, Ozner Water adopted a revolutionary business model, which provides water purification service while charging annual rental, providing a unique advantage in the market. The Group has established a directly managed service team, the network of which covers over 800 counties and cities in 30 provinces in China. Ozner Water originates the "cloud water purification technology", which enables the Group to remotely manage the water purifiers by mobile phone network. This technology reminds customers and the after-sale staff the issues of purifier's filter expiration and purifier failure. In addition, the Company uses CRM system in its customer service center in headquarter to maintain customer relationship and convey customers' need timely, while Ozner Water's air purification dedicates to provide solutions and services in the field of healthcare, foods and electronics.
