KuangChi Science's Net Profit Soared to approximately HK$106 million

Wednesday, 31 August 2016, 17:45 HKT/SGT

The Sustainable Development of the Future Technology Business Recorded High Profit Growth;
The Group Provides Comprehensive Services and Solutions Aiming to Create Future Smart Cities

HONG KONG, Aug 31, 2016 - (ACN Newswire) - In the first half of 2016, there are many HK-listed companies with outstanding earnings growth. KuangChi Science (stock code: 439.HK), a company with disruptive technologies focusing on the future technology in the PRC , should be one of the excellent HK-listed companies with high future growth potential. In 1H2016, the Group concentrated on the development of future technology business and conducted R&D of different disruptive technologies such as "future space" technology, "future artificial intelligence" technology, strived to provide comprehensive services and solutions and assist the city operators to create future smart cities with the intention of solving all problems concerning city environment, convenience and safety. In 1H2016, revenue from the Future Technology Business was approximately HK$284.73 million, representing an increase of 1300% over last year. Of the revenue, the "Cloud", the Group's fastest commercialized product, recorded HK$284.73 million. Benefited from the sustainable growth of disruptive future technology business, the Group recorded revenue of approximately HK$312 million, representing a significant increase of 461.77% over last year. Gross profit margin was up from37.09% to 62.91%. Net profit soared to approximately HK$105.53 million, achieving a turnaround from loss for the Comparative Period. Basic earnings per Share increased to 1.85 HK cents.

Dr. Zhang Yang Yang, the CO-CHIEF EXECUTIVE OFFICER of KuangChi Science said, "In the first half of 2016, KuangChi Science has established its leading position in disruptive technology field through the in-depth research and development of different disruptive technologies, providing comprehensive services and solutions to propel the development of future smart cities, as well as solving all problems concerning city environment, convenience and safety."

Business Review for the Period

The Group's "Cloud" project panned out and has since operated well, with base technological institute constructed. As at 30 June 2016, the "Cloud" project located in Dongguan base has operated steadily for more than six months. The platforms under the "Cloud" project regarding space information and loading were all in normal operation, providing important big data basis for city surveillance, ecological monitoring and fire warning. Meanwhile, the "Cloud" project located in Zunyi base has completed the system set-up and testing in full. At present, the "Cloud" has already been conveyed to the base headquarters for set-up and operation. Test flight will be conducted once the customer completed the construction of take-off base. Besides, the "Cloud" projects have gradually started running in the PRC cities and have successively entered into the design and implementation stages.

The Group finished the design of the "Solarship" and started to build the prototype and conducted flying tests.

During the period, the Group's low-level flying transport platform "Solarship" has finished a number of prototype models design, followed by building prototypes and conducting flying tests. "Solarship" is a large and new-concept flying apparatus. In terms of design, it combines the technical features and edges with airship and fixed-wing aircraft. It also integrates the design concept of solar clean energy system and idea of pure electric-powered green apparatus in achieving sustainable development. The product flies at altitudes between 1,000 meters and 3,500 meters, with maximum loading capacity of 30 tonnes and longest transport distance of 1,000 kilometers. It is also eco-friendly and has a short take-off and landing distance.

The Group has now already teamed up with related departments of the Canadian government to further conduct progress flying tests and put into commercial operation of the latest version of the prototype. Recently the design proposals go smoothly and are expected to carry out public testing and flight in 2016 and in early 2017.

"KuangChi Martin Jetpack" started full safety tests and stepped further towards commercial use

"KuangChi Martin Jetpack", the world's first commercial and practical jetpack, is the Group's "black technology product" from the future. It is designed to accomplish a flying revolution for individuals. During the Period, the Group also completed the testing, production and assembling of "KuangChi Martin Jetpack". The Group aimed to complete the repeated safety tests of series I of "KuangChi Martin Jetpack" before delivery, so as to ensure its good performance for emergency rescue, police search and rescue, civil and commercial use, and high-end flying experience.

With a regard to the safety systems, the Group have conducted repeated tests and verification on its safety systems such as automatic hovering system, ballistic parachute system and pilot protection structure. Series I of "KuangChi Martin Jetpack" is expected to commence commercial operation in 2017.

The near space tourism project is planned to take off this year
During the period, the Group began its design and development effort on the manned version of the "Traveler", which is the key project for the Group's near space business. The manned version of the "Traveler" is a new model of aerostat for near space tourism. It lifts and floats by helium and integrates aircraft grade life protection system. It is designed to meet the demand for near space tourism, and can be used for developing other scientific loading tests.

Since 2016, the manned version of the "Traveler" has obtained some periodic breakthroughs. The Group will seek to carry out the launch and recovery tests in the second half of the year.

Innovative technologies were integrated and platforms were set up for industrialisation under the "Global Community of Innovation"

The Group is committed to creating the "Global Community of Innovation". Under this "Global Community of Innovation", there are a range of innovative technologies and platforms for industrialization that gather innovators from all over the world to shoulder the innovation mission of "designing, realising and sharing the future". The Group is committed to build up the "Kuang-Chi GCI Fund & Incubator" in Tel Aviv, Israel. The "Kuang-Chi GCI Fund & Incubator" is the first technology fund and incubator set up by Chinese technology enterprise in Israel. The total investment is US$300 million, with the initial contribution of US$50 million aimed to make investments in technological innovation projects in Israel and the world.

Dr. Zhang Yang Yang, the CO-CHIEF EXECUTIVE OFFICER of KuangChi Science said, "KuangChi brought the innovators around the world to create the "Global Community of Innovation" ("GCI"), which gathered over 2400 talents across 5 continents and 18 countries. The business of KuangChi well covers three characteristics of future trends: In-depth Space, Spiritual Machines, Ultimate Connection. Involving in industries such as aerospace, new space services, equipment with artificial intelligence, smart cities, as well as new wireless communication technology. KuangChi has become a world leader in developing and promoting a series of products such as metamaterial aviation structure, KuangChi Martin Jetpack, smart city floating system, the "Cloud", near space tourism platform, the "Traveler", Super WiFi, photon certification and photon pay that enable cities smoothly tap into the future world. With the GCI initiative, KuangChi has created a network featuring a number of partners specialized in invention and innovation for the future. The Group is committed to creating the "Global Community of Innovation". Under this "Global Community of Innovation", there are a range of innovative technologies and platforms for industrialisation that gather innovators from all over the world to shoulder the innovation mission of "designing, realising and sharing the future". In the future, together with the diversification of innovative technologies, the strengthening of research and development capabilities, the expansion of sales network and the improvement of product design and performance of the "Global Community of Innovation", as well as the sustainable development of the disruptive technologies and the enhancement of profitability, the Group will be able to bring satisfied return to shareholders."

About KuangChi Science Limited
KuangChi Science concentrates its great efforts on the development of future technology business and conducted R&D of different disruptive technologies such as "future space" technology and "future artificial intelligence" technology, strived to provide comprehensive services and solutions, in order to assist the city operators to create future smart cities with the intention of solving all problems concerning city environment, convenience and safety.

The Group will continually diversify its future technology business groups to respond a brand-new business group constructed by a variety of future technologies and even sci-fic technologies for the development of future technologies. The "Future Space" products of the Group are combined with and use metamaterial technologies. They apply in wide area internet-of-things networking, optical remote sensing and telemetry, internet access, smart big data collection, private network and backbone communication, smart observation, emergency rescue, transportation, space tourism and others, with the purposes of fully expanding human living space and enhancing the efficiency of space utilisation.

Topic: Press release summary Sectors: Daily Finance, Daily News
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