Hollysys Automation Technologies Announces Signing of $29.3 Million Control Systems Contract for the Guangzhou-Shenzhen High Speed Railway Line
Project to Commence in Current Quarter; Expected Completion in Mid-2010
Sep 18, 2008
BEIJING – Sep 18, 2008 – Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control systems for the industrial, rail and nuclear power sectors in the People's Republic of China (PRC), today announced that the PRC Ministry of Railways has awarded the Company a contract for the design, construction, implementation, and maintenance of a new 300 kilometer per hour high speed rail line. This is the second high speed rail line contract awarded to Hollysys in the past two months.
This project was awarded to both Hollysys and Hitachi, Ltd., with Hollysys' portion for the control system totaling to RMB205.2 million, or approximately US$29.3 million. Hollysys will begin recognizing revenues upon the commencement of the project in the current quarter, with expected completion by mid-2010. When completed, this rail line will span 104.9 kilometers, or approximately 65 miles. The line will connect the cities of Guangzhou to Shenzhen, both of which are located in Guangdong Province in the southern part of the PRC and directly north of Hong Kong.
Dr. Wang Changli, Hollysys' Chief Executive Officer, stated, "We are very pleased to be awarded our second high speed train contract in the last two months, which we feel is a testament to our high quality proprietary design, performance, and competitive position. We are one of only three domestic companies that have the capability to provide automation control systems for high speed rail networks and one of only two domestic companies able to provide these systems for trains with speeds of 300 kilometers per hour or greater. This rail line is of particular interest because it connects Guangzhou, the third most populous metropolitan area in mainland China, with Shenzhen, the second largest port in mainland China. We have great confidence that the progress we have made in our rail business will continue to produce additional contract wins."
About Hollysys Systems
Hollysys Automation Technologies, based in Beijing, China, with 1,800 employees, is the leading domestic provider of automation control systems to China's surging nuclear, rail and industrial markets and will soon begin providing control systems to China's booming wind energy market. Hollysys has developed a series of proprietary high quality, low cost control systems that meet or exceed international standards and is able to effectively compete against the world's leading automation control companies.
For further information: Jennifer Zhang Investor Relations & Corporate Communications P.R. China: +86(10) 5898-1386 United States: +1(646) 593-8125 Email: mailto: firstname.lastname@example.org