China All Access 2017 Annual Results; Net Profit Records Approximately RMB232 Million

In 2017, China All Access's revenue from continuing operations recorded approximately RMB2,688 million, approximately 12.5% YoY decrease from 2016. Gross profit from continuing operations recorded approximately RMB464 million. Gross profit margin was 17.3%. During the year, profit for the year attributable to equity owners of the Company from continuing operations increased to approximately RMB229 million from approximately RMB87 million in 2016, representing approximately 163.1% YoY growth. Basic earnings per share were RMB0.117. The Board recommended the payment of a final dividend of HK$ 5.0 cents per ordinary share.

Mr. SHAO Kwok Keung, CEO & Executive Director of China All Access, said, "In 2017, we have implemented a number of initiatives as a result of the Group's overall repositioning and adoption of new business segment structure. Since we adopted the 'Made in China 2025' strategies in 2015, our manufacturing operations including display modules and precision moldings businesses have been expanding rapidly in the last two years. In 2017, through repurchasing the remaining minority interest in these businesses, we have formed the new "information and communication technology" (ICT) business segment. This has laid a solid foundation for the Group to reposition itself as a "high-end smart manufacturer" in the near term and to become an ICT sector leader in the future. In addition, our second-largest new energy business segment started to produce the first-generation Super Lens High Efficiency Solar Electrical System ("Super Lens Electrical System") products in 2017, as the Group enters a new stage in its development."

During the year, approximately 88.4% of Group's revenue was contributed by the ICT segment (Appoximately RMB 2,376 million), of which the LCD Display Module business has the largest YoY growth. As the Group firmly believes that the LCD Display Module business has strong growth potential in the future, the management team decided to suspend the spin-off plan of LCD Display Module business for listing on GEM. The Group bought back 25% equity interests in China Lide Holdings Limited ("China Lide") at a total consideration of approximately HK$48.80 million in September 2017. As a result, China Lide has become an indirect wholly-owned subsidiary of the Group so it can explore more growth potential in the display module sector. Also, the Group has acquired the remaining minority interests of the precision mold business during 2017. By doing so, the Group will be able to better coordinate the management team, more effectively implement overall strategic planning and development, and more efficiently allocate the resources, thus creating greater synergies and production capacity. In addition, leveraging the strategic integration of its upstream supply chain, the Group has received more orders and recorded a higher sales volume. The Group is committed to continuously explore growth opportunities in the future, especially the new ICT sector. The Group intends to allocate sufficient resources to effectively enhance its capabilities in both software and hardware, including not only product innovation but also advanced solutions such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI) and the internet of things (IoT).

With respect to the new energy segment, after more than two years of effort to develop solar technology, the Group has achieved major progress and recorded revenue for the first time, generating RMB177 million, in 2017. In September 2017, the Group has entered into strategic cooperation with several parties by signing a framework agreement in relation to the establishment of a production plant for manufacturing Super Lens Electrical System product in Shandong Province, the PRC to promote its First Generation Products. It also sold and installed a 20-megawatt Super Lens Electrical System in Qinghai Province, the PRC. The Group believes that Super Lens Electrical System will be at the forefront of new energy and environmental protection in the market. The product not only will enhance the transformative capability of solar panels, resulting in a significant decrease in the cost of solar energy, but also will bring a new driver for the Group's business growth.

China's photovoltaic industry achieved explosive growth in 2017. The National Energy Administration announced that the additionally installed photovoltaic capacity of China in 2017 exceeded 53 Gigawatt ("GW"), representing an increase of 53.4% YoY, with a cumulative installed capacity of more than 130 GW. Of this total, additionally installed distributed capacity exceeded 19 GW, representing an increase of 3.7 times YoY.

The global photovoltaic market is expected to continue its growth momentum. The Chinese market is set to maintain a certain market volume in 2018, and the demand will not diminish. The China Photovoltaic Industry Association stated that the demand for the photovoltaic industry in 2018 would range between 30 and 45 GW, so the distributed power stations would achieve unprecedented popularity and the related market for power stations for household users and to alleviate poverty would also strengthen and benefit society. The Group will adhere to its energy development path taking into account conditions in China, promote the revolution in energy generation and consumption, and accelerate the establishment of a clean, low-carbon, safe and efficient power generation system. Furthermore the Group will continue to increase its focus of the centralized photovoltaic business as it accelerates the research and development of distributed photovoltaic products.

Revenue from the investment business increased by 0.89% YoY to approximately RMB135 million. The revenue was mainly attributed from interest earned from provision of facilitating capital to supply stream and customers and investment returns generated from direct investment and high yield treasury products.

Mr. SHAO concluded, "Looking ahead to 2018, the Group will continue to optimize its management system and will further push forward the development and innovation of products as well as production technology. By adhering to this strategy, it aims to develop the Group into an innovative high-tech industrial group engaged in the R&D, production and sales, thus achieving comprehensive development in both ICT and new energy segments and becoming an high-end smart manufacturer at the same time."

Topic: Press release summarySectors: Daily Finance, Daily News^[1][2] http://www.acnnewswire.com From the Asia Corporate News Network

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References

1. ^{^} Daily Finance (www.acnnewswire.com)
2. ^{^} Daily News (www.acnnewswire.com)