Thursday, March 28, 2024
 
Columnist
Martin Hennecke
 
TECHNOVATOR
HKEx Stock Code : 01206 
 
Corporate Profile
The Group is primarily engaged in the design, manufacturing and distribution of integrated building automation and energy management systems. In addition, the Group provides products and solutions for control security and fire alarm systems.

Business Review - For the year ended December 31, 2012

1. Continuous strengthening research and development capability

The Group has 3 research and development centers located in China, Canada and France respectively. The Group set up an energy saving technology research institute in Beijing to give technology support and tailor-made building energy management products and solutions services for sizable projects in China. During the year, the Group achieved its breakthrough on self research and energy-saving products by combining the usage of internet and data integration as a cloud-based energy saving application and launching the Energy-saving Expert Control System (ˇ§EECˇ¨) which combines the functions of energy management, energy-saving analysis and control. Such system, together with the advanced control software of energy management solutions, can detect the operation of the building's energy facility and make adjustment based on the usage of the building and equipment for persistent and optimal performance. It sharpens the Group's competitive edge in the solutions arena.

2. Thriving development in the PRC market

In order to realize the energy saving and reduction of emission planning inˇ§12th Five-Year Planˇ¨, each local government launched various measures in step with the national policy and stimulated the energy saving demand. Chongqing city, as one of the eight cities participating in the ˇ§National Energy Saving Cityˇ¨, appointed Technovator as the co-operation partner of the energy saving and reduction of emission planning to conduct energy saving reform for Chongqing public buildings to build up a monitoring platform of energy consumption and promote and develop city energy saving management of Chongqing with an aim to become a model city for national authority office buildings and scaled public building energy saving management system. The first stage of construction completed during the year. It is expected that Technovator will complete over 2 million s.q.m. of building energy saving reform construction for Chongqing before 2015.

In the PRC, the building energy management is still a topic of interest as the awareness of building energy saving is increasing and the respective market is rapidly growing as a result of numerous governments' energy policies and speedy urbanization of second and third tier cities.

In order to seize the opportunities of the market, the Group actively expanded its business coverage by leveraging on its self developed and advanced products as well as technological prowesses, deploying more resources to explore new business model during the year. Apart from the Chongqing project, the Group also commenced the projects in Shanxi, Xinjiang and Inner Mongolia. In the meanwhile, the Group also expedited the regional and city-level energy saving projects to provide energy saving reform services for different types of buildings ranging from government office buildings, school campuses, hospitals to offices in Beijing, Chongqing, Jinan, Hangzhou, Wuhan, Chengdu.

3. Steady development in overseas markets

The Group has been making efforts to expand the overseas market. During the year under review, we seized the opportunities of the pressing demand on the refabrication of the existing buildings to lower energy consumption in Europe and America market. The Group realized stable growth in such regions by providing cost-effective energy saving solutions for customers and expanding the sales and distribution channel in order to focus more on sizable contracts.

We kept on expanding the sales and distribution channel in order to focus more on sizable contracts, developing and commercializing our energy saving solutions to meet the needs of the customers with many outlets. During the year under review, Distech Controls, Technovator's subsidiary, entered into a strategic partnership with Samsung Techwin, a renowned global supplier in building energy management solutions and energy efficiency consulting services, with an aim to leverage on the complementary advantage to provide customers with stronger building energy management solutions and energy efficiency services. In addition, the Group also actively developed its new business model and introduced suitable strategic partners. It is believed that such actions will be beneficial to the Group's future development.

Emerging markets are considered to be crucial regions for the Group's future development. The Group's first energy saving project in Burma Junction Square, a mega shopping mall in Yangon, was opened in March 2012. With our good reputation of this project in Yangon, Technovator once again won the second project in Burma ˇV to provide integrated building solutions service for the Ruby Hall National Guest House, which will be the venue of ASEAN Summit in 2014. The construction is expected to complete in the end of 2013.

Business Outlook - For the year ended December 31, 2012

The need to increase energy efficiency and savings while implementing green and sustainable measures enables the global building energy saving market to continue its momentum. In addition, with regulations that imposes certain energy efficiency standards for buildings in many countries of the globe, building owners and facility managers are widely opting to use building energy management products and solutions. Moreover, encouraging policies launched by those governments also stimulate the demand of building automation systems.

Benefiting from economic recovery and unfolding construction projects, the building energy saving market is expected to witness steady growth in the coming years. We believe that such growth will bring boundless opportunities of development for the industry. Looking forward, we will continue to focus on our business development plans with an objective to capitalise on our competitive advantages to capture business opportunities during the development of the industry.

Keeping Focus on Research and Development and Developing Product Solutions

We will continue to maintain the advantage of our research and development teams and further enhance the co-operation among our research and development centers. We will focus on product and solutions development to seize business opportunities through developing and promoting innovative products and solutions.

In the meanwhile, the Group will continue to collaborate with Tsinghua University and other research institutions to expedite product development and technology innovation by leveraging on our advantage of our talents and technological resources.

Expanding Sales Channels and Seizing the Opportunities of Domestic Market

The Chinese government emphasizes the importance of energy saving and reduction of emission in ˇ§12th Five-Year Planˇ¨ while the awareness of domestic building energy saving solutions keeps increasing, thus numerous statutory energy policies are gradually launched. Thanks to the gradual development of its economy, China speeds up the urbanization of second and third tier cities, thus immense business opportunities are brought to the building energy saving market under the drive of favorable measures in the country and demand.

The Group has been focusing on expanding the sales of our energy-saving solutions and products and customer base. The Group will utilize our global reputation, existing nationwide presence and cumulative experience in new products and solutions development to strengthen sale channels. Leveraging on our competitive pricing edge of products and services, it is believed that we are well-equipped with competitive advantages in the building energy saving market.

In the meanwhile, we will devote our resources to exploring new business models, expanding customer base and addressable market and enhancing our business presences.

Extending Business Realm and Promoting Internationalized Development

Actively expanding the overseas market has long been one of the Group's core strategies. The Group will continue to deepen and develop international market and leverage the co-operation with its distributors and system integrators to extend business areas and sales footprints. As for the customer base, we will further consolidate the co-operation with existing customers which are mainly sizable and chain enterprises.

Apart from promoting growth by the its own advantages, the Group has been establishing overseas subsidiaries with wellknown overseas industry peers to form a strategic alliance for stronger brand and experience of international projects. In the future, the Group will continue to seek for companies with innovative technology and capabilities to form strategic partnerships in order to raise its scale, expand its product variety and portfolio, widen its geographic reach and enhance the rapid growth of the Group. On the other hand, the Group will continue to make efforts on exploring the growth of emerging markets while the ASEAN Free Trade Area is one of the targets for the Group's future business development.

In a nutshell, the Company will take advantage of the favourable opportunities offered by the soaring demand of the energy-saving building, and consolidate our leading position in the industry. Given our advantage focusing on research and development of products and solutions, our efforts on expanding global sales and marketing distribution, actively pursuit for suitable strategic partnerships, we are confident of creating value for our shareholders.

Source: Technovator Int'l (01206) Annual Results Announcement
Chairman Lu Zhicheng Issued Capital (shares) 522M
Par Value N/A Market Capitalisation (HKD) 1,356M
 
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