Continue Seize the Opportunity and Consolidate Its Market Leadership
HONG KONG, Aug. 27, 2012 /PRNewswire-Asia/ --
Financial Highlights (Unaudited for the year ended 30 June 2012)
| 1st Half 2011 (RMB'000) |
1st Half 2012 (RMB'000) |
Changes | |
| Turnover | 876,385 | 1,093,939 | +25% |
| Profit Margin | 188,844 | 265,338 | +41% |
| Net Profit | 101,627 | 127,335 | +25% |
| Earning per share | RMB12.70 cents | RMB13.93 cents | +10% |
| Dividend | 5 HK cents/share | -- | -- |
Trigiant Group Limited ("Trigiant Group" or "the Company", and its subsidiaries "the Group"; Stock Code: 1300), is pleased to announce its interim results ended 30 June 2012 ("Reviewing Period"). During the reviewing period, benefiting from sustained development of domestic mobile communication network, the Company recorded a considerable profit growth. The company recorded a turnover increase of 25%to RMB 1,093.9 million; net profit grew 25% to RMB 127.3 million. The Board recommended the payment of the interim dividend of 5 cents HKD per share for the six months ended June 30, 2012.
Mr. Qian Lirong, the Chairman of the Group expressed satisfaction with the results, he said: " the Company has stabled its RF coaxial cable market share and position. Secondly, benefiting from the integration of China's domestic 2G and 3G networks and sustainable development, brought the company a huge space for its business growth, in addition to the devolopment of 4G network in the future. I believe the Company shall steps to a higher level on mobile communication equipment industry."
Since the commencement of the 12th Five-Year Plan in China, in the telecommunication industry, they gets a wide range of use in 3G network and information technology, however, with 3G mobile phones is popularly used in China, the three major telecommunications operators, such as China Mobile, China Unicom and China Telecom's 3G subscribers recorded a continuously increase, the three major telecommunications operators has increased expenditure on its mobile telecommunications, in order to enhance the quality of network service and their competitiveness.
During the reviewing period, three major telecommunications operators in China were the key customers of the Group. Revenue from these three customers recorded RMB 1,044.7 million, an increase of 26% compared to the same period last year, income from China Unicom, China Mobile and China Telecom were 59.1%, 35.0% and 1.4%, respectively, while last year were 48.4% 43.9% and 2.2%, respectively.
According to the product segment of the Company, main product RF coaxial cable series was benifited from the rising market demand and recorded a remarkable growth during the period. Sales volume of RF coaxial cables increased to 54,348 km, and revenue reached RMB 832.2 million, accounring for 76.1% of the Group's total revenue. The sales increase was mainly driven by the network optimization of China's major telecom operators.
In addition, due to the Group winning of a tender to supply flame-retardant flexible cables to one of China's major telecommunication operator, sale of the Flam-retardant flexible cable series recorded a significant growth and increased by RMB 160 million to RMB 172 million, representing 15.7% of the Group's total revenue.
As for the new-type electronic components and other accessories, revenue recorded RMB 47 million and RMB 43 million resepctively, an increase of RMB 11 million and RMB 32 million respectively compared with the same period last year.
Referring to recent statistics, China's three major telecommunications operators recorded a number of 3G subscribers reached 176 million, with a year-on year growth 118%, however the 2G subscribers are over 800 million, which indicated that the 3G subscribers still have room to growth. The Company believes that since migration from 2G to 3G has been taking place for over 15 years, and the recent 3G subscribers number is comparatively low, there is still much room for 3G development driven by the 12th Five-Year Plan for 3G development. Before the official launch of 4G in China, the Company believes that telecommunication operators will further increase their capital expenditure in expanding and optimizing 2G and 3G networks to cater new generation communications development and that the domestic 2G, 3G and 4G networks will coexit for few years in the near future, thus bringing the Group a sustainable long term development opportunity.
Mr Qian added:" the Group is not only to seize the opportunity of domestic market, but also will pay close attention to overseas markets, such as Russia, India and Brazil, etc. Meanwhile, in order to cope with the rapid development of global telecommunications market, the Group will increase in R & D funding to develop new products and enhance its competitiveness.
At present, the annual production capacity of RF coaxial cable of the Group exceeds 150,000 kilometers and the Group will increase its production capacity according to the market demand. The Group believes that relying on its competitive advantage and leading domestic position in the industry; experienced management team; world-class quality; extensive distribution network, the Group is confident of maintaining its market position.
About Trigiant Group Limited
Trigiant Group is one of the leading PRC manufacturers in research, development and sales of RF coaxial cable, new-type electronic components and other related accessories for use in mobile communications and telecommunications equipment. According to the notices issued by OEC in February 2011 and February 2012 respectively, which covered all major RF cables manufacturers in the PRC, Jiangsu Trigiant, the principal operating subsidiary of the Group, ranked first in terms of sales volume for RF cables among all major RF cables manufactures in the PRC in 2010 and 2012 respectively.
