Risecomm Announces 2018 Annual Results
* * *
Strategy Movement to Tap into SMIA Business Segment
Expands Revenue Stream and Diversifies Customer Base
(Hong Kong, 28 March 2019) Risecomm Group Holdings Limited (“Risecomm” or the “Group”) (Stock Code: 1679), a power-line communications (“PLC”) technology enterprises in China, has announced its annual results for the year ended 31 December 2018 (the “Review Year”).
During the Review Year, the Group’s two major business segments, namely the automated meter reading (“AMR”) and other business and the Smart Manufacturing & Industrial Automation (“SMIA”) business, both reported growth led to the increase in total revenue of 49.9%, amounted to approximately RMB475.8 million. This is mainly due to the increase in revenue from the AMR business and the introduction of new revenue stream from SMIA business. Gross profit increased by 9.5% to approximately RMB159.5 million. During the Review Year, net profit declined to approximately RMB4.2 million, it was mainly due to the increase in general and administrative expense, finance costs and the amortisation of intangible assets arising from the acquisitions of two businesses.
The Group’s two major business segments both reported growth in revenue, contributed approximately 73.0% and 27.0%% to the Group’s total revenue respectively.
AMR and other Business
Nevertheless a significant decrease in revenue from sales of PLC products to customers under State Grid centralized biddings for the Review Year, AMR and other business segment still recorded a revenue of approximately RMB347.4 million, representing an increase of approximately 9.5%. The growth was mainly attributed to a significant increase in sales of PLC products to customers through trading sales and local biddings under State Grid and China Southern Power Grid Co., Ltd. (“Southern Grid”).
During the Review Period, the Group completed the acquisition of North Mountain Information Technology Company Limited (“NM Technology”). NM Technology is an investment holding company and is principally engaged in sales and distribution of electronic components, in particular for ICs and related products in China through its subsidiary in China. The acquisition allows the Group to collaborate with NM Technology to diversify its customer base, achieve vertical integration of its business as well as broaden the Group’s revenue stream in AMR and other business. This is conducive to the long-term growth and sustainable development of the Group in order to enhance value for shareholders.