Risecomm Announces 2017 Annual Results
Smart Energy Management Business Surges 63.8%
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Ready to Tap Enormous Growth Potential in Market
(Hong Kong, 28 March 2018) Risecomm Group Holdings Limited (“Risecomm” or the “Group”) (Stock Code: 1679), the third-largest power-line communication (“PLC”) technology company in China, has announced its audited consolidated annual results for the year ended 31 December 2017 (the “Review Year”), the first full-year annual results after its listing on the Main Board of The Stock Exchange of Hong Kong Limited on 9 June 2017. Despite the temporary slowdown in the Automated Meter Reading (“AMR”) market in China, the Group has successfully seized the rising business opportunities in streetlight control devices and concentrators for streetlight controls. Thus, the Group recorded an encouraging performance of the smart energy management (“SEM”) business segment with the segmental revenue surged 63.8%.
The year 2017 has been a transitional year as AMR applications transit from narrowband to broadband PLC industry standard. As a result, a temporary slowdown in market demand hampered the overall industry performance, so the Group’s AMR business also adjusted accordingly. During the Review Year, overall revenue of the Group amounted to about RMB317 million and gross profit was about RMB146 million. Gross profit margin of the Group was 45.9%. Excluding the one-off and non-recurring listing expenses of about RMB12.9 million, adjusted profit attributable to the equity shareholders of the Company was about RMB25.59 million, adjusted net profit margin was 8.1% and adjusted basic earnings per share were RMB3.5 cents.
The year 2017 was a year of special significance for Risecomm. The listing provides a broader capital platform for the Group and the Group has also consolidated its foothold in the PLC market. Although the growth pace of the AMR market slowed down which brought challenges for its operation, the Group’s strategy of expanding its SEM business segment paid off, as this segment grew over 60%. The Group will strengthen its product development capability continuously in order to lay a solid foundation for its sustained growth.