omniture

Anxin-China Announces 2011 Annual Results

Anxin-China Holdings Limited
2012-03-15 23:22 1498

Total Income Attributable to Owners of the Company Surged by 191% to HK$530 million

Core business of coal mining and multi-industry ISD system continues to see strong growth

HONG KONG, March 15, 2012 /PRNewswire-Asia/ --

Highlights:

Results Summary

  • Turnover increased substantially by 96% to HK$598 million
  • Total income attributable to owners of the Company jumped by a staggering 191% to HK$530 million
  • Net profit from continuing operations rose by 137% to HK$404 million
  • Cash and bank balances rose to HK$1,078 million at 31 December 2011 (31 December 2010: HK$400 million)
  • The Board has recommended a final dividend payment of 3 HK cents per share (2010: Nil)

Significant Developments

  • At the end of 2011, the Group's footprint spanned across 30 (2010: 27) municipalities in 9 provinces (2010: 8) and successfully applied ISD systems to 11 (2010: 7) types of origins of peril(1)
  • Number of ISD surveillance points under coverage more than doubled to 13,002 (2010: 6,493) by the end of 2011
  • The Group is actively conducting research and development to expand its ISD application to "public safety" and "environmental surveillance"

Anxin-China Holdings Limited ("Anxin-China" or "the Group", Stock code: 1149.hk), the largest integrated solution provider of ISD ("Intelligent Surveillance, Disaster Alert and Rescue Coordination") systems in China, today announces its results for the year ended 31 December 2011.

The Group's turnover from its core business increased substantially by 96% to HK$598 million, as compared to HK$305 million in the previous year. Total income attributable to owners of the Company increased by a staggering 191% to HK$530 million (2010: HK$182 million). Profit for the year from continuing operations was HK$404 million, representing a spectacular year-on-year increase of 137%.  Basic earnings per share from continuing operations rose by 43% to 16.37 HK cents (2010: 11.45 HK cents). Diluted earnings per share amounted to 15.35 HK cents (2010: 8.70 HK cents), representing an increase of 76%.

As at 31 December 2011, cash held by the Group amounted to HK$1,078 million (31 December 2010: HK$400 million).  Thanks to strong operating cash inflows, borrowings were reduced to zero at the year end (31 December 2010: HK$20.48 million).

The Board of Directors has recommended the payment of a final dividend of 3 HK cents per share (2010: Nil).

The Group is the largest ISD solution provider in China. At the end of 2011, the Group's footprint spanned across 30 (2010: 27) municipalities in 9 (2010: 8) provinces and successfully applied ISD systems to 11 (2010: 7) types of origins of peril.  By the end of 2011, number of surveillance points under coverage more than doubled to 13,002 (2010: 6,493).

Mr. Liu Zhongkui, Chairman of Anxin-China, said, "Our resounding success is primarily due to two factors.  Firstly, thanks to the Chinese Government's increasing emphasis on coal-mining and industrial production safety after accession to the WTO, we enjoy favorable policies and strong support from local governments.  Secondly, we possess strong R&D capabilities, in particularly the leading edge Internet-of-things technologies, which enable us to maintain our undisputed leadership in the ISD industry."

"Despite our strong financial performance, it has to be reminded that the ISD industry is still at its infancy stage and there is more than ample room for continuing exponential growth. In October 2011, the "Safe Industrial Production 12th Five-Year Plan" was announced, in which the Central Government re-affirmed its determination and commitment to improving coal mining and industrial production safety. The Plan stipulates that local governments are expected to dedicate at least 5% of their annual budgets to support and facilitate the improvement of industrial production safety.  This new measure is expected to further fuel the already rapid growth of the ISD market," added Mr. Liu.

In its "12th 5-Year Plan", the Chinese Government put forward the concept of "Smart City".  This concept encompasses the ideas of "Safe City", "Public Safety" and "Environmental Protection Surveillance".  In its "China Public Safety 12th Five-Year Development Plan" , the Government has set a target to double the country's public safety infrastructure by 2015.  It is estimated that the industry size of public safety could reach RMB 500 billion by 2015.  In addition, according to the recently announced "Environmental Protection 12th Five-Year Plan", RMB3,400 billion is expected to be spent in order to enforce and monitor the implementation of environmental protection regulations.

The Group's R&D expenditure is budgeted at 8% of turnover and its R&D Department boasts a team of over 60 professionals. The Group is thus well-prepared to exploit the enormous business opportunities arising from the Central Government's new initiatives to strengthen coal mining and industry production safety, and to improve "Public Safety" and "Environmental Protection Surveillance" recently announced in the "12th Five-Year Plan".

"The current macro backdrop is very positive for us.  Supported by favorable government policies, enormous growth opportunities are abound for us.  Our leading edge in Internet-of-things technologies also equips us with the ability to become first movers to exploit the opportunities made available to us by the government's initiatives to step up coal mining and industrial production safety, public safety and environmental protection surveillance. We will continue to contribute to the safety of the society, and create maximum returns to our shareholders." concluded Mr. Liu.

(1) In 2008, the State Administration of Work Safety identified 31 categories of "origins of peril" for public and industrial safety purposes.  Examples of such origins of peril are coal mines, gasoline stations and high human density locations. It is the Central Government's objective to install ISD systems to monitor all 31 categories of origins of peril across the nation over the next 10 to 15 years. Based on the Group's own estimates, there are at least 1 million surveillance points across the country if ISD systems are to cover all 31 categories of "origins of peril".

About Anxin-China Holdings Limited (www.anxin-china.com.hk)

Listed on the Stock Exchange of Hong Kong, Anxin-China Holdings Limited (Stock code: 01149.hk) is the first and the largest ISD system provider and service operator in China. Unique to China, ISD systems are surveillance systems applied to coal mining and industrial production safety using Internet-of-things technologies according to government requirements. The Group's revenue sources mainly include: (1) customizing ISD solutions according to customer needs; (2) the provision of ISD hardware and software; and (3) ongoing ISD agency operations and maintenance services. The target customers of the Group are primarily government authorities, including the Administration of Work Safety, the Administration of Coal Mine Safety and the Production Safety Emergency Control Center, etc.

The Group is one of the pioneers and first movers of ISD systems in China and participated in the formulation of the standards of China's coal mining ISD system. It is also one of the earliest coal mining ISD system providers formally endorsed by the Chinese government. At present, the Group is the one and only ISD solution provider that is capable of providing multi-industry ISD systems. As at the end of 2011, the Group's footprint spanned across 30 municipalities in 9 provinces with 13,002 surveillance points under coverage.

For further enquiries, please contact:

Hill and Knowlton Asia Ltd.   
Angela Kung Krista Chen
Tel: (852) 2894 6374 Tel: (852) 2894 6286
Email: angela.kung@hkstrategies.com  Email: krista.chen@hkstrategies.com 
   
James Wong Ada Ho
Tel: (852) 2894 6216 Tel: (852) 2894 6290
Email: james.wong@hkstrategies.com  Email: ada.ho@hkstrategies.com 
Source: Anxin-China Holdings Limited
collection