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| Revenue Reaches Record High of US$886.5 Million |
HONG KONG, Apr 15, 2015 - (ACN Newswire) - Cowell e Holdings Inc. ("Cowell" or the "Group") (stock code: 1415), a major supplier of camera modules for mobile devices, has announced its audited consolidated annual results for the year ended 31 December 2014 ("FY2014"). These are its first annual results since its listing on the Main Board of The Stock Exchange of Hong Kong Limited ("HKSE") on 31 March 2015.
During the year under review, revenue of the Group increased by 8.9% to US$886.5 million, with the major contributors being the production of new camera modules for a major customer and the commencement of commercial production of blue filters. Gross profit increased by 8.6% to US$112.1 million, while gross profit margin remained steady compared to the prior year. As a result of such increase, which was partially offset by one-off expenses related to the Group's successful listing on the HKSE, profit for the year increased by 6.0% to US$53.2 million, while net profit margin also remained steady compared to the prior year. Basic earnings per share was US$0.071.
Business Review
The two operating segments of the Group's business, namely camera modules and optical components, recorded revenue growth of 8.9% and 9.0%, respectively, compared to last year.
Camera Modules
Sales of camera modules increased by 8.9% to US$874.4 million, principally as a result of a 9.9% increase in turnover from sales of flip-chip camera modules from US$588.5 million in 2013 to US$646.8 million in 2014. Such increase was further increased by a 6.2% rise in sales of chip-on-board (COB) camera modules from US$214.3 million in 2013 to US$227.6 million in 2014, mainly due to increases in sales to LG Electronics and Samsung Electronics.
Optical Components
Sales of optical components increased by 9.0% to US$12.1 million, primarily due to a 7.1% increase in the number of units sold to 256.0 million units in 2014, mainly reflecting sales of blue filters, which commenced commercial production in April 2014. The average selling price of the Group's optical components remained relatively stable in 2014 compared to 2013.
Prospects
The Group will continue to focus on developing innovative technology and "designed-in" capability, and improving its production efficiencies to meet the ever-changing needs and rising expectations of its customers so as to enhance its position as a major manufacturer of camera modules.
To strengthen relationships with major customers and to grow its business with them, the Group has sought to increase penetration of the camera modules market by expanding its product portfolio from primarily fixed-focus camera modules to a variety of high-end camera modules. Meanwhile, the Group is formulating plans to develop packaging solutions for new product introductions. These new products would be improvements in existing categories or enable the creation of new market segments that the Group currently does not serve. Furthermore, the Group intends to develop and manufacture components that may be used in camera modules and other optical components which would provide synergies with existing products.
To bolster production efficiencies, the Group intends to enhance its flip-chip and COB technologies and expand its manufacturing capabilities and production capacity to align its camera module solutions with expected customer requirements. The Group also aims to continuously boost its operational efficiency by improving its manufacturing technologies and automation processes, which can lead to increased productivity, higher production yields and reduced costs.
The Group is committed to providing more highly customized and competitive products that will further cater to the diversified needs of customers and generate sustainable returns for its shareholders.
Contact:
Strategic Financial Relations Limited
Vicky Lee Tel: +852 2864 4834 Email: vicky.lee@sprg.com.hk
Cecilia Shum Tel: +852 2864 4890 Email: cecilia.shum@sprg.com.hk
Mieko So Tel: +853 2114 4979 Email: mieko.so@sprg.com.hk
Fax: Tel: +852 2527 1196
Website: http://www.sprg.com.hk
Topic: Press release summary
Source: Cowell e Holdings Inc.
Sectors: Daily Finance
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From the Asia Corporate News Network
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