Hollysys Automation Technologies Announces Strategic Plan
Nov 8, 2007
Beijing, China – November 8, 2007 – Hollysys Automation Technologies, Ltd. ("Hollysys") today announced highlights of its strategic plan for the next 18 months.
Hollysys Systems intends, over the next 18 months, to:
1. Use proceeds from the warrant redemption to invest up to $40 million in its
Beijing HollySys operating subsidiary. This will increase Hollysys' percentage
ownership in Beijing HollySys from 74.11% to approximately 85%, which
will result in Hollysys' receiving a corresponding increased share of the
earnings of this subsidiary going forward
2. Continue to increase revenues and earnings from its Nuclear Power Control
Systems business by delivering on recently announced contracts and by
obtaining new contracts now under negotiation
3. Begin to recognize significant revenue and earnings from its Rail
Automation Systems business
4. Launch its Automation and Drive business by integrating its in-house PLC,
drive and motor businesses into a new Unit
5. Begin the process of expanding its local service centers in China. Hollysys will
increase the number of its local service centers in China from 4 to 10 over
the next 12 months to accommodate the growing customer base and to
raise its service level
6. Continue to expand internationally to take advantage of an increasing
interest in its products from many large and medium sized international
Dr. Wang Changli, Hollysys' Chief Executive Officer explained, "Being a listed company in the US, we are issuing this outline to help our investors better understand our current business and to make them aware of our plans for the future. Over the next few months we expect to provide more insights into many of the items mentioned above.
"The automation and control business is complex and multifaceted. Because it is technology based, the barriers to entry are high. It has taken us years to develop several product lines that can compete on a performance basis with any in the world and can be delivered at considerably lower cost to the end users. As one of the largest and most technologically advanced automation control systems companies in China, we plan to continue to grow our businesses aggressively in different segments. In addition, we are continuing our entry into the international markets with our proven and very competitive product lines.
"We are very excited about our prospects for the future, and we expect to turn that excitement into results that will enhance shareholder value."
Hollysys has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.
For further information: CONTACT: Mark Brewer (619) 795-4627 Dr. Wang Changli (8610) 5898 1332 INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Adam Prior (212) 836-9606 email@example.com