它去年第四季度的营收下跌28.3%，亏损也因客户需求减少及厂房使用率偏低，加上较高的融资成本和行政支出，而扩大到8940万港元（1770新元）。它如今要扭转业务，唯一的方法是依靠其太阳能业务，毕竟它已经投资太多资源在这方面。
考虑到它进军太阳能业务所付出的巨额支出，德意志摩根建富证券研究认为它当前的有机发光二极管（OLED）以及光学媒体业务不足以使它走出困境。
它已经从中国政府获得2亿元人民币（4494万新元）的补助金，以支持它进军有机发光二极管和太阳能业务，而且它将会获得另外1亿元人民币（2247万新元）。这些特殊项目将能使它的净收入好转。要是剔除这些特殊项目，它预料接下来两年还会蒙受亏损。
考虑到它的低估值但恶化中的基本面，德意志摩根建富证券首次给予它“中性”评级，并把它的目标价从原本的16分提高到18分，相等于同行平均的30%股价对账面值比率的一半。
宏威科技昨日没有任何交易，本周一是最后有成交的日子，当日收报21分。
德意志摩根建富证券研究
DMG & Partners Securities
Showing posts with label Anwell Technologies. Show all posts
Showing posts with label Anwell Technologies. Show all posts
Thursday, March 19, 2009
Wednesday, September 17, 2008
宏威集团：太阳能健厂如期；08年二季度利润1820万元港币
宏威科技力图成为太阳能模组全球制造商的宏伟抱负正在中国河南省逐渐成型。
新加坡分析员访问团日前拜访了占地13万平方米的工厂，宏威和中国的合作伙伴将在此建造中国首条全自动生产薄膜太阳能组件的生产线。
宏威财务主管胡伟健说：“这个工厂从今年3月份开始建设，进展顺利，将于明年第一季度开始运作。
”宏威期望该新厂09年第一季度就能产生收入，第一笔销售客户是巴西能源公司（Brazil Energy），这是一家巴西主要的控股投资公司，主要业务是能源和基础设施建设项目。宏威与巴西能源公司已经接洽关于出售高达5兆瓦(MW)的太阳能组件的初步协议。宏威的薄膜模组每瓦特最高售价为2.5元美金，而生产成本却不到1元美金。
宏威的生产能力到2010年将从40MW提升到120MW，希望到2013年能成为世界前十强的太阳能模组生产商。宏威－其股票在新加坡交易所上市－还和巴西能源签署了关于2009年下半年研发和销售太阳能模组生产线的协议。
“巴西能源来找我们洽谈是因为我们在南美出色的业务表现，在南美，我们DVD刻录光盘（DVD-R）主要设备的销售占领了30％的市场份额，”宏威集团首席执行官范继良在先前接受NEXTINSIGHT采访时说。“太阳能技术与光盘技术有某些共通性，”当被问及宏威如何运用光盘业务领域的技术发展太阳能业务时，范总解释道。宏威集团是世界第二大光碟复制设备制造商，包括DVDR和蓝光光盘。它是惟一一家同时具备光盘制造能力和贸易网络的生产销售企业。
第二季度的净利润达到1820万元港币
得益于集团媒体产品制造和贸易部门的强劲销售额，第二季度的营业收入激增125％达到2.82亿元港币，其中这两个部门的贡献额为2.2亿元港币。设备制造部门贡献了余下的6200万元港币。
股东应得溢利为1820万元港币，相较去年第二季度仅为250万元港币。
宏威去年第四季度收购了媒体产品制造和贸易部门，现在公司正从该收购项目获得现金流的利处。
这项收购业务能给集团带来稳定的现金流入，这能保障集团对于研发项目的长期投入，包括媒体产品行业和新尝试项目（例如太阳能业务）。
08财政年第二季度的分销费用是1600万元港币，比07财政年700万元的分销费用高了132％。08财政年第二季度的管理费用为3400万元港币，同比去年增加159％。
较高的费用水平是由于合并了去年第四季度收购的媒体产品制造和贸易业务所产生的费用。
在今年上半年，宏威获得了价值930万元港币的政府补助。为了在高科技领域进一步推进中国设备制造商的发展，集团认为政府这类补助将会持续。
到目前为止，给宏威的政府补助金均用于资助前沿科技产品的研发，包括蓝光技术，有机发光二极管( OLED )和太阳能技术。
七月，中国总理温家宝访问了集团在中国东莞的设备制造厂。他鼓励宏威团队继续为中国的太阳能事业做出贡献。
宏威的最近收盘价为5.5分，这已经是在它每股8.46分新币的资产净值上打了个折扣。
Source
新加坡分析员访问团日前拜访了占地13万平方米的工厂，宏威和中国的合作伙伴将在此建造中国首条全自动生产薄膜太阳能组件的生产线。
宏威财务主管胡伟健说：“这个工厂从今年3月份开始建设，进展顺利，将于明年第一季度开始运作。
”宏威期望该新厂09年第一季度就能产生收入，第一笔销售客户是巴西能源公司（Brazil Energy），这是一家巴西主要的控股投资公司，主要业务是能源和基础设施建设项目。宏威与巴西能源公司已经接洽关于出售高达5兆瓦(MW)的太阳能组件的初步协议。宏威的薄膜模组每瓦特最高售价为2.5元美金，而生产成本却不到1元美金。
宏威的生产能力到2010年将从40MW提升到120MW，希望到2013年能成为世界前十强的太阳能模组生产商。宏威－其股票在新加坡交易所上市－还和巴西能源签署了关于2009年下半年研发和销售太阳能模组生产线的协议。
“巴西能源来找我们洽谈是因为我们在南美出色的业务表现，在南美，我们DVD刻录光盘（DVD-R）主要设备的销售占领了30％的市场份额，”宏威集团首席执行官范继良在先前接受NEXTINSIGHT采访时说。“太阳能技术与光盘技术有某些共通性，”当被问及宏威如何运用光盘业务领域的技术发展太阳能业务时，范总解释道。宏威集团是世界第二大光碟复制设备制造商，包括DVDR和蓝光光盘。它是惟一一家同时具备光盘制造能力和贸易网络的生产销售企业。
第二季度的净利润达到1820万元港币
得益于集团媒体产品制造和贸易部门的强劲销售额，第二季度的营业收入激增125％达到2.82亿元港币，其中这两个部门的贡献额为2.2亿元港币。设备制造部门贡献了余下的6200万元港币。
股东应得溢利为1820万元港币，相较去年第二季度仅为250万元港币。
宏威去年第四季度收购了媒体产品制造和贸易部门，现在公司正从该收购项目获得现金流的利处。
这项收购业务能给集团带来稳定的现金流入，这能保障集团对于研发项目的长期投入，包括媒体产品行业和新尝试项目（例如太阳能业务）。
08财政年第二季度的分销费用是1600万元港币，比07财政年700万元的分销费用高了132％。08财政年第二季度的管理费用为3400万元港币，同比去年增加159％。
较高的费用水平是由于合并了去年第四季度收购的媒体产品制造和贸易业务所产生的费用。
在今年上半年，宏威获得了价值930万元港币的政府补助。为了在高科技领域进一步推进中国设备制造商的发展，集团认为政府这类补助将会持续。
到目前为止，给宏威的政府补助金均用于资助前沿科技产品的研发，包括蓝光技术，有机发光二极管( OLED )和太阳能技术。
七月，中国总理温家宝访问了集团在中国东莞的设备制造厂。他鼓励宏威团队继续为中国的太阳能事业做出贡献。
宏威的最近收盘价为5.5分，这已经是在它每股8.46分新币的资产净值上打了个折扣。
Source
Monday, June 23, 2008
Anwell in China JV for thin-film solar module business
Anwell Technologies Limited, an equipment and technology supplier to the optical disc, OLED and solar industries, today said it has formed a joint venture with a Chinese partner for thin-film solar module business.
The Chinese partner will invest US$7 million for a 10 per cent stake in the JV with 40MW initial production capacity per annum and will provide strategic local support for the solar module plant.
The new plant will be located in Henan, China. The initial 40MW production facility will be installed in the fourth quarter of FY2008 and will be China's first fully automatic thin-film solar module production line.
Following the pilot run in 1Q2009, the JV is expected to generate revenue by 2Q2009.
The management also plans to increase its production capacity to 120MW by 2010. -- BT Newsroom
The Chinese partner will invest US$7 million for a 10 per cent stake in the JV with 40MW initial production capacity per annum and will provide strategic local support for the solar module plant.
The new plant will be located in Henan, China. The initial 40MW production facility will be installed in the fourth quarter of FY2008 and will be China's first fully automatic thin-film solar module production line.
Following the pilot run in 1Q2009, the JV is expected to generate revenue by 2Q2009.
The management also plans to increase its production capacity to 120MW by 2010. -- BT Newsroom
Saturday, May 31, 2008
宏威集团 ：蓝光技术和太阳能使公司飞速发展
参会者对从10米长生产线下来的蓝光光碟充满好奇。
接受测试的光碟正完美地播放着香港歌手夏韶声的音乐。参会者已经对宏威的蓝光碟片生产设备有了直观的印象，因为公司已将这套设备运到法兰克福参加世界上最大的光学媒体业贸易展览会。
事件：媒体科技产业博览会从2008年5月6日开始至5月8日结束。
宏威是唯一在参展会场放置蓝光光盘生产线并现场启动生产线作示范的参展商。
它给Expedia Media留下了深刻的印象，这是加利福尼亚一家集光学媒体制造，包装及分销于一体的公司，当场就签署协议购买总和为7位数的生产线。
“之后，我们非常高兴地将一个印有Expedia Media名字的“已出售”标签贴在机器上 ” 执行董事胡伟健在昨日接受NextInsight采访时回顾道（5月15日，星期四）。
胡伟健说，“那些到过宏威展台的参观者，有些将会成为潜在客户。”
宏威本月在法兰克福博览会的展台。照片由宏威提供在新加坡交易所上市的宏威公司――是全球仅有的蓝光光盘复制设备的两个制造商之一。
日本的索尼公司也生产这种设备，但仅供自己使用。
从去年第四季度起，宏威蓝光光碟复制设备开始交货，之后持续收到订单。
生产一台机器需要六到八周的时间。宏威这次在法兰克福签订的价值为650万美元订单中包括在展会上出售的那台机器。
其他三个订单是购买DVD刻录光盘（DVDR）和DVD预录光盘的复制设备。交付期将从今年第三季度开始。
其中两个订单来自镭射影碟――阿根廷最大的光盘制造商，他们在智利，秘鲁和哥斯达黎加都有工厂。
宏威的SL2D刻录盘生产线将成为首条在阿根廷安装的DVD刻录盘生产线。
订单
除了在贸易展示会上签订的合同， 宏威在3月31日还有价值1.11亿港元的成品和半成品设备库存。这些设备将在未来几个季度运出并在财务报表以销售收入体现出来。
与此相比， 5700万港币的设备销售额将体现在第一季报中。在第一季度业绩公布中，宏威说，公司设备销售滞销是因为光盘制造商已面临两难局面：是扩大现有的数字通用光盘格局，或是进行新的投资，布局蓝光光盘市场。
在今年2月东芝公司宣布它将停止对处于白热化竞争的HD DVD项目继续投资后，光盘制造商对光盘的未来格局有着明确的看法――即蓝光光盘。
较低的设备销售额使得集团今年第一季度的税后收益亏损1700万港币（去年同期盈利203,000港币）。胡伟健说：“虽然我们的收入有所波动，但这行业在蓝光光盘和制造商所投资的刻录盘市场驱动下仍处于循环上升中。”宏威第一季度的营业额为2.26亿港元，其中1.69亿港币来于媒体产品的生产及贸易业务。
胡伟健说：“为了提高所有机器的生产效率，一些设备被用于研发使用，所以媒体产品工厂的产量下降了10%。”他还说：“目前该研发项目已经完成。在本季度末，基于研发完成，生产量将比第一季度提高20 ％ 。”
太阳能业务 
胡伟健：行业正处于循环上升阶段。（沈琪摄像）宏威正在快速发展一种新业务，这就是太阳能业务，它与光盘业务在技术上有些共通性。
胡伟健：行业正处于循环上升阶段。（沈琪摄像）宏威正在快速发展一种新业务，这就是太阳能业务，它与光盘业务在技术上有些共通性。
这些技术包括采用薄膜技术，真空技术和自动化。宏威与首位客户巴西能源公司（Brazil Energy）签署了一项初步协议，销售给他们一套可立即投入使用的薄膜硅太阳能电池生产线。
巴西能源公司打算每年向宏威采购起始电容为40兆瓦的Sunlite-120型号生产线。宏威还未确定最终售价，但市价大概是每瓦特250美元，这意味如果成交的话，宏威机器将售得一亿美元（不含折扣）。
该设备将在明年下半年交付。另外，宏威也与巴西能源公司谈论关于出售5兆瓦的薄膜硅太阳能电池组件的初步协议。
交货期预计从明年第一季度开始，这样能使巴西能源先开始其太阳能业务，而无需等到制造设备全部完成。
胡伟健说，公司考虑到在太阳能产业的其他潜在客户， 所以在中国河南设立了一家太阳能电池工厂。
目前全球有3家公司在生产薄膜太阳能组件和相关的资本设备。
Monday, May 12, 2008
Singapore Hot Stocks-Anwell's Brazil deal lifts tech stocks
SINGAPORE, May 7 (Reuters) - Technology stocks were lifted after optical disc equipment maker Anwell Technologies said it has agreed to sell solar panels to Brazil Energy, an investment company focused on energy and infrastructure.
Anwell soared as much as 12.5 percent to a five-month high of S$0.090 with over 12 million shares traded. Its shares surged 45 percent on Tuesday.
Other tech shares such as copper recycler Advance SCT gained as much as 7.4 percent to a one-month high of S$3.65 with more than 8.1 million shares traded.
Aztech Systems , which makes internet modems and telephones, rose as much as 7.7 percent to nearly a four-month high of S$0.28 with about 7.7 million shares changing hands.
Digital storage maker Datapulse Technology was up as much as 4.9 percent to S$0.215 -- also the highest in over three months -- with about 5.6 million traded.
"Investors are expecting deals to follow for these tech firms. They are also expecting private equity firms to buy up these tech companies which are quite correctly priced," a dealer said.
Hard-disk components maker Unisteel Technology has received bids from several private equity firms, sources have said, which is the latest takeover target in the tech sector that has seen a wave of consolidation amid stiff competition and falling prices.
Shares of Unisteel were trading flat at S$1.83 per share.
0227 GMT - Straits Times Index up 0.03 percent.
(Reporting by Tan Wei Xin; Editing by Neil Chatterjee) ((weixin.tan@thomsonreuters.com; +65 6403 5667; Reuters Messaging: weixin.tan.reuters.com@reuters.net))
Anwell soared as much as 12.5 percent to a five-month high of S$0.090 with over 12 million shares traded. Its shares surged 45 percent on Tuesday.
Other tech shares such as copper recycler Advance SCT gained as much as 7.4 percent to a one-month high of S$3.65 with more than 8.1 million shares traded.
Aztech Systems , which makes internet modems and telephones, rose as much as 7.7 percent to nearly a four-month high of S$0.28 with about 7.7 million shares changing hands.
Digital storage maker Datapulse Technology was up as much as 4.9 percent to S$0.215 -- also the highest in over three months -- with about 5.6 million traded.
"Investors are expecting deals to follow for these tech firms. They are also expecting private equity firms to buy up these tech companies which are quite correctly priced," a dealer said.
Hard-disk components maker Unisteel Technology has received bids from several private equity firms, sources have said, which is the latest takeover target in the tech sector that has seen a wave of consolidation amid stiff competition and falling prices.
Shares of Unisteel were trading flat at S$1.83 per share.
0227 GMT - Straits Times Index up 0.03 percent.
(Reporting by Tan Wei Xin; Editing by Neil Chatterjee) ((weixin.tan@thomsonreuters.com; +65 6403 5667; Reuters Messaging: weixin.tan.reuters.com@reuters.net))
Friday, May 9, 2008
ANWELL sambas to beat of Brazilian solar energy customer
SOLAR ENERGY as a viable alternative to fossil fuels is moving toward “tipping point”, as cost per solar watt nears US$1.
That’s why the only capital goods maker listed on SGX, Anwell Technologies, is jumping on the solar power bandwagon.”
Solar cell production is expected to grow 25%-45% a year,” said its CEO Franky Fan to NextInsight in a telephone interview this week.
The capital goods maker expects to deliver its first production line for “Thin-Film” solar modules to Brazil Energy, an investor in energy producers."Brazil Energy approached us because of our strong presence in South America, where we have a 30% market share for DVD-R capital equipment," says Franky.”Solar technology has similarities to that for optical discs,” he explains, when asked about strategy in new business lines.
Anwell was the world’s largest DVD-R capital goods maker last year and shipped out its first Blu ray disc production line in 4Q07.Makers of conventional (crystalline) solar cells are rushing to produce new breed “Thin-Film” solar cells, which use less than 1% of silicon light absorbers compared to the former.
There are 80 “Thin-Film” solar capital goods makers today.Leading the pack is semi-conductor wafer equipment maker Applied Materials, which had US$1.9 billion of orders for solar factory equipment as at Mar 2008.
Anwell’s Sunlite-120 fully automatic turnkey production line has annual capacity of 120 megawatt peak (MWp), and is the largest available today.Competing lines produce at 20-60 MWp a year.And there are no “Thin-Film” solar module capital equipment makers in China currently, other than Anwell.
Replication of capital goods maker-integrated-downstream model
The equipment maker wants to replicate its successful business model in optical discs.
It is the only optical disc equipment maker that also manufactures end-user products (DVD-R and CDR discs).A new subsidiary of Anwell expects to deliver up to 5 mega watts of “Thin-Film” solar modules to Brazil Energy by 1Q09.
How lucrative would solar panels prove to be for Anwell?Market prices for Anwell’s “Thin-Film” solar modules are now at US$2.50 per watt peak, says Franky.
It generally costs US$1 per watt peak (albeit with government subsidies) to produce “Thin-Film” solar modules.”Being in China, and being integrated from equipment making allows us to produce at lower than US$1 per watt peak”, says Franky.This works out to pretty lucrative margins for Anwell's first solar module deal.
Thin Film makes solar energy commercially viable
“Thin-Film” solar cells are easily mass-produced as the process uses less than 1% of the silicon in conventional crystalline cells.Silicon, which amounts to 40%-50% of cost of goods sold in the latter, was the traditional cost barrier to solar energy.
When will “Thin-Film” solar systems become a cost effective alternative to fossil fuels?
The tipping point is widely touted to be a factory gate price of US$1 per watt peak, versus Anwell’s US$2.50.
Below the tipping point, the device for converting sunlight into electricity holds huge potential for installations on roofs or facades of public, private and industrial buildings.It is also used at solar power generation plants.
Governments worldwide such as in the US, Australia and China are also promoting the use of solar energy.
Home in Singapore, for example, the government announced this week a S$20 million scheme to subsidize property developers and building owners up to 40% for solar projects.
Confluence of solar energy and oil prices by 2010?
Oil prices made a new record this week, rising as high as US$122 a barrel, doubling y-o-y.Tightening supplies of crude oil make it increasingly likely that prices will reach as high as US$150-US$200 by 2010, according to Goldman Sachs analysts in a recent report.
Oil prices made a new record this week, rising as high as US$122 a barrel, doubling y-o-y.Tightening supplies of crude oil make it increasingly likely that prices will reach as high as US$150-US$200 by 2010, according to Goldman Sachs analysts in a recent report.
In contrast, prices of “Thin-Film” solar cells are expected to dip past tipping point to US$0.90-US$1.30 per watt peak by 2010, according to Applied Materials.
By end 2009, Anwell’s 40-mega watt (MW) line in Henan will be expanded to 120 MW.
The company will be ready for 2010’s solar energy revolution...
Wednesday, May 7, 2008
Anwell Technologies
InfoSmart Group, Inc. Closes on $5,000,000 Financing to Fund Blu-Ray Demand in International Markets
May 05, 2008: 08:30 AM EST
May 05, 2008: 08:30 AM EST
InfoSmart Group, Inc. ("InfoSmart" or the "Company") (OTCBB: IFSG), a leading recordable digital versatile disc ("DVDR") manufacturer in Hong Kong and Brazil, today announced that on Wednesday, April 30th, 2008 it closed on a $5.0 million commercial secured lending transaction (the "Loan") with two institutional investors. The proceeds of the Loan are marked for the Company's development of Blu-Ray Disc (BD) sales and marketing efforts in their local and international markets.
For more detailed information on the Loan referred to in this release, reference is made to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission and related exhibits thereto.
Parker Seto, CEO of InfoSmart Group, stated: "While our company continues to reap the benefits of traditional DVDR lines in emerging markets like Brazil, we are also preparing for the continued development of media in developed markets such as Asia. The addition of BD production lines to our recent acquisition of our first Anwell unit not only expands our Blu-Ray production capacity, but also adds balance to our product portfolio which now consists of DVDR, Flash Memory and now BD."
About InfoSmart Group, Inc.
InfoSmart operates state-of-the-art DVDR and storage media production facilities in Hong Kong and Brazil and is preparing to manufacture Flash Memory. InfoSmart has production flexibility to upgrade its manufacturing capacity to include production of High-Density (HD) and Blu-Ray discs. In addition, the Company is one of the largest manufacturers of DVDR discs in Brazil and all of South America. Flash memory devices will be the storage media of choice for years to come, whether the Company is able to manufacture Blu-Ray DVD for mature markets or traditional DVDR for developing markets. No other storage media available rivals the combination of high capacity, low cost and exceptional portability of InfoSmart's current product mix.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to InfoSmart Group, Inc. (the "Company").
However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, risks associated with international transactions, general economic conditions, availability of funds for capital expenditure by customers, availability of timely financing, cash flow, timely delivery by suppliers, ability to produce our DVDRs and their components, ability to maintain quality control, collection-related risks from international transactions, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report on Form 10-K filed with the SEC on April 1, 2008, and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.
Contact:
Investor Relations,
HC International, Inc.
Alan Sheinwald, Partner
Tel: (914) 669-0222
Email: Alan.Sheinwald@HCinternational.net
Investor Relations,
HC International, Inc.
Alan Sheinwald, Partner
Tel: (914) 669-0222
Email: Alan.Sheinwald@HCinternational.net
Friday, April 25, 2008
Name change of subsidiary – Anwell to explore further opportunities in Thin Film and Vacuum Coating Technologies
Name change of subsidiary – Anwell to explore further opportunities in Thin Film and Vacuum Coating Technologies
• The name of existing wholly-owned subsidiary “Dongguan Anwell Electronics Co. Ltd.” will be changed to “Anwell Thin Film and Vacuum Technology Ltd.”
• Thin film solar cell equipment - a natural progression for Anwell with core competencies based on Thin Film and Vacuum Coating Technologies
Singapore, 10 April 2008 - Anwell Technologies Limited (“Anwell” or “The Group”), the world’s only vertically integrated optical disc equipment maker with a disc-manufacturing arm, has announced that the name of their subsidiary “Dongguan Anwell Electronics Co. Ltd.” will be changed to “Anwell Thin Film and Vacuum Technology Ltd.” The management will dedicate this subsidiary to explore further opportunities with the Group’s core competencies in Thin Film and Vacuum Coating Technologies. In the near future, optical disc production equipment will remain as the Group’s primary business to capture the opportunities in Blu-ray technologies.
“The vertical integration has strengthened the Group’sposition and hence enables us to explore other sectors ofthe hi-tech industry by leveraging on our coretechnologies in the optical disc industry.
The solar energy industry is one of the fastest growingindustries with great potential. The visible route map forcost reduction and the fast energy payback time of the thinfilm solar cell will make it a star for the future energysegment.
By completing the R&D in FY08, Anwell is expected tooffer equipments with complete turnkey solution for thesolar energy industry as well as solution for thin film glasscoating. The design of the system aims at lowest cell costwith highest quality.
Besides, the energy payback time and the manufacturingcost of the thin film solar cell are much less than theconventional type of silicon crystalline solar cell.” Mr Franky Fan, Executive Chairman & CEO of Anwell
Focusing on Thin Film and Vacuum Coating TechnologiesAlong with the new business structure of the Group, it is scheduled to complete the R&D for theGroup’s first thin film solar module production equipment in the second half of 2008.
A complete turnkey solutionA new factory in Dongguan, PRCThe subsidiary will explore the various opportunities that Thin Film and Vacuum Technologies can be applied in. Some of these applications are: TCO and ITO coatings, Thin Film Solar Cell, Low-E coatings on glass and etc.
Currently, the Group is on track to complete their R&D for the solar cell production system andhas already completed the R&D for the large scale sputtering machine. The machine is capable ofsputtering metallic thin film, ITO (“Indium Tin Oxide”), TCO (“Transparent Conductive Oxide”) andLow-E (“Low-Emissivity) glass. The PECVD tool for deposition of p-i-n silicon
ITO coated optical filters for electronicdisplays are used for electromagnetic/radio-frequency shielding, optically clear heatersand as the active component in resistive andcapacitive touch panels.
TCO coated glass act as electrodes and “lighttraps” which are key components in thin filmsilicon modules.
Low-E glass reflects a significant amount ofthis radiant heat, thus lowering the total heatflow through the window.
thin film is expected to be finished by June 2008. The group is expected to offer complete turnkey solution for the thin film solar cell manufacturers by FY09.
Industry Information: Solar Industry
Global demand for energy is expected to keep increasing over the next two decades, fueled by emerging economic giants such as China and India. With oil prices costing more than US$100/bbl,solar energy is one of the most encouraging alternatives.
However, the issue has always been the cost per watt and the energy pay back time. Recentincreases in the price of silicon feedstock have heightened the cost advantage opportunity of thinfilm technology. The price of silicon feedstock increased from $28-$32/kg for 2004 delivery to $45-$50/kg for 2006 delivery, and spot prices have been reported to exceed $100/kg in 2006. With Anwell adopting the Thin Film Silicon Solar Cell approach, significantly less Silicon (raw materialof Solar Cells) is required, thus lowering the cost of production per cell.
About AnwellAnwell Technologies Ltd. (“Anwell”) is a global leader in providing integrated business solutions for the optical mediareplication business. The Group’s activities include the design, manufacture and sales of innovative and cost efficientoptical media replication systems. The Group also provides customers with the necessary technical expertise, businessknowledge, production systems and service support worldwide. In 2007, the Group built a synergistic platform byintegrating into optical media replication business. Leveraging with its core competencies in high-precision andautomation technologies, Anwell is targeting to be a world class equipment manufacturer in different high-technologyindustries.
For more information, please refer to the corporate website www.anwell.com.
Investor Relations ContactKen Wu, CFO Mark Lee / Kamal SamuelAnwell Technologies LimitedFinancial PR Pte Ltd Tel: (852) 2499 9178Tel: (65) 6438 2990 Fax: (852) 2499 9170Fax: (65) 6438 0064 E-mail: kenwu@anwell.comE-mail: marklee@financialpr.com.sg/kamal@financialpr.com.sg
Source
• The name of existing wholly-owned subsidiary “Dongguan Anwell Electronics Co. Ltd.” will be changed to “Anwell Thin Film and Vacuum Technology Ltd.”
• Thin film solar cell equipment - a natural progression for Anwell with core competencies based on Thin Film and Vacuum Coating Technologies
Singapore, 10 April 2008 - Anwell Technologies Limited (“Anwell” or “The Group”), the world’s only vertically integrated optical disc equipment maker with a disc-manufacturing arm, has announced that the name of their subsidiary “Dongguan Anwell Electronics Co. Ltd.” will be changed to “Anwell Thin Film and Vacuum Technology Ltd.” The management will dedicate this subsidiary to explore further opportunities with the Group’s core competencies in Thin Film and Vacuum Coating Technologies. In the near future, optical disc production equipment will remain as the Group’s primary business to capture the opportunities in Blu-ray technologies.
“The vertical integration has strengthened the Group’sposition and hence enables us to explore other sectors ofthe hi-tech industry by leveraging on our coretechnologies in the optical disc industry.
The solar energy industry is one of the fastest growingindustries with great potential. The visible route map forcost reduction and the fast energy payback time of the thinfilm solar cell will make it a star for the future energysegment.
By completing the R&D in FY08, Anwell is expected tooffer equipments with complete turnkey solution for thesolar energy industry as well as solution for thin film glasscoating. The design of the system aims at lowest cell costwith highest quality.
Besides, the energy payback time and the manufacturingcost of the thin film solar cell are much less than theconventional type of silicon crystalline solar cell.” Mr Franky Fan, Executive Chairman & CEO of Anwell
Focusing on Thin Film and Vacuum Coating TechnologiesAlong with the new business structure of the Group, it is scheduled to complete the R&D for theGroup’s first thin film solar module production equipment in the second half of 2008.
A complete turnkey solutionA new factory in Dongguan, PRCThe subsidiary will explore the various opportunities that Thin Film and Vacuum Technologies can be applied in. Some of these applications are: TCO and ITO coatings, Thin Film Solar Cell, Low-E coatings on glass and etc.
Currently, the Group is on track to complete their R&D for the solar cell production system andhas already completed the R&D for the large scale sputtering machine. The machine is capable ofsputtering metallic thin film, ITO (“Indium Tin Oxide”), TCO (“Transparent Conductive Oxide”) andLow-E (“Low-Emissivity) glass. The PECVD tool for deposition of p-i-n silicon
ITO coated optical filters for electronicdisplays are used for electromagnetic/radio-frequency shielding, optically clear heatersand as the active component in resistive andcapacitive touch panels.
TCO coated glass act as electrodes and “lighttraps” which are key components in thin filmsilicon modules.
Low-E glass reflects a significant amount ofthis radiant heat, thus lowering the total heatflow through the window.
thin film is expected to be finished by June 2008. The group is expected to offer complete turnkey solution for the thin film solar cell manufacturers by FY09.
Industry Information: Solar Industry
Global demand for energy is expected to keep increasing over the next two decades, fueled by emerging economic giants such as China and India. With oil prices costing more than US$100/bbl,solar energy is one of the most encouraging alternatives.
However, the issue has always been the cost per watt and the energy pay back time. Recentincreases in the price of silicon feedstock have heightened the cost advantage opportunity of thinfilm technology. The price of silicon feedstock increased from $28-$32/kg for 2004 delivery to $45-$50/kg for 2006 delivery, and spot prices have been reported to exceed $100/kg in 2006. With Anwell adopting the Thin Film Silicon Solar Cell approach, significantly less Silicon (raw materialof Solar Cells) is required, thus lowering the cost of production per cell.
About AnwellAnwell Technologies Ltd. (“Anwell”) is a global leader in providing integrated business solutions for the optical mediareplication business. The Group’s activities include the design, manufacture and sales of innovative and cost efficientoptical media replication systems. The Group also provides customers with the necessary technical expertise, businessknowledge, production systems and service support worldwide. In 2007, the Group built a synergistic platform byintegrating into optical media replication business. Leveraging with its core competencies in high-precision andautomation technologies, Anwell is targeting to be a world class equipment manufacturer in different high-technologyindustries.
For more information, please refer to the corporate website www.anwell.com.
Investor Relations ContactKen Wu, CFO Mark Lee / Kamal SamuelAnwell Technologies LimitedFinancial PR Pte Ltd Tel: (852) 2499 9178Tel: (65) 6438 2990 Fax: (852) 2499 9170Fax: (65) 6438 0064 E-mail: kenwu@anwell.comE-mail: marklee@financialpr.com.sg/kamal@financialpr.com.sg
Source
Tuesday, March 18, 2008
Media-Tech 2008: Kind of Blu
It’s not like they planned it that way, but Media-Tech’s North American conference, turned out to be the optical disc industry’s de facto first post-war summit. Held March 4-5 at the Mayfair Hotel in Miami’s Coconut Grove, Media-Tech 2008 was the industry's first conclave after the decisive victory of Sony’s Blu-ray over Toshiba’s HD DVD in a two-year format war that had ended only two weeks earlier.
Ostensibly, the conference was focused on business strategies that would help disc replicators and duplicators cope with diminishing demand and margins on physical media, such as duplicating Flash media and optimizing direct-mail marketing. But there was a palpable and collective sigh of relief throughout the relatively small show floor that the shoe had finally dropped in what had been a multi-billion-dollar competition for the next-generation disc format, one that effectively put capex and strategic planning on hold for both disc makers and equipment manufacturers.
Singulus, which has the largest market share in the global optical disc line manufacturing sector, seemed particularly happy. The company had held an open house a week earlier at its factory in Kahl am Main, Germany, to introduce the BD 50, its newest Blu-ray line that can manufacture the 50-GB iteration of the format. Sylvia Hitzel, v.p. of sales & marketing for Singulus, told EMedialive that the company is convinced that 50GB will be the version of choice in the U.S., where quick market traction for the format is critical to success. “The format is already moving in the U.S. and we expect Europe will begin to expand it capacity within the next few weeks,” she said, estimating that current sales of 15 lines in place or on order will increase by over 50% in Q2.
In the wake of a presentation on Blu-ray by Mike Mitchell, EVP and CTO at replicator Sony DADC, in which he outlined the format’s technical and manufacturing vision going forward, the talk turned to how quickly a Blu-ray infrastructure could be achieved and what would drive it. Cedric Collard, marketing manager for Austrian-based measurement/testing/optimization equipment maker Datarius, said quickly ramping up capacity could prove challenging. “It was a long war with a sudden end,” he said. “In the meantime, many of the line manufacturers in this business are gone, including Krauss-Maffei, 4M and Steag.”
In fact, only three companies globally have lines ready for sale – Singulus, Sony’s own lines and China-based Anwell; Sweden’s M2 has a BD 25 line that will be ready to ship by Q4. “But there have been a lot of BD-related product announcements recently, so I believe the technology is ready.”
Bob Freedman, CTO at replicator and post house Crest Digital in Los Angeles, said that getting the manufacturing infrastructure together was the first priority for the format, and that Sony was doing a good job getting information and support to potential users. However, like most replicators outside of the small top tier in the U.S. that already have BD lines in place--Sony’s DADC, BMG’s Sonopress, Cinram, and Technicolor--Freedman says his company will wait until its customer base develops sufficient demand for BD.
Pierre Van Dongen, sales agent for Anwell, which recently sold its first BD 25 line in the U.S. to CD Video in California, said he has been receiving “numerous” RFQs (requests for quotes) from replicators, including mid-tier disc manufacturers. “The expectation is that in the short term, at least, there will be more demand than capacity, so the mid-tier replicators are evaluating the possibilities of overflow from the majors and from independent studios,” he said. “What will be the challenge is not building the lines but rather installing them, training on them and support, because the BD [manufacturing] process is still evolving.”
More Than BluBD may have been the big buzz, but Media-Tech had other components. It was the first time that the Frankfurt, Germany-based organization partnered its show with AIMMA(American Independent Media Manufacturers Association), IDDA (International Disc Duplicating Association), and the DVDA (DVD Association). Media-Tech managing director Bryan Ekus said, “Blu-ray’s emergence as the next-gen format is a signal for the industry to come back together.”
Gary Reeves, president of Rochester-based duplicator Spinergy and an AIMMA member, agreed but added that physical media is diverse enough to warrant subgroups that can focus on specialized facets of the business, such as AIMMA’s Colonial Purchasing co-op, which lets members pool consumables purchases to obtain larger volume discounts. Till this year, only replicators in AIMMA could participate; at their meeting during Media-Tech this year, the organization extended it to duplicators, as well. Media-Tech’s European expo is scheduled for May 6-8 in Frankfurt.
Dan Daley (danwriter at aol.com) is an experienced journalist and author, covering the business and technology of the entertainment industry for over 20 years. His work has appeared in numerous publications, both trade and general interest, including Billboard, The New York Daily News, Mix Magazine, GRAMMY Magazine, American Way, Spin, History Channel, TravelHost, International Business, USA Today, ArchiTech, and many others.
Source
Ostensibly, the conference was focused on business strategies that would help disc replicators and duplicators cope with diminishing demand and margins on physical media, such as duplicating Flash media and optimizing direct-mail marketing. But there was a palpable and collective sigh of relief throughout the relatively small show floor that the shoe had finally dropped in what had been a multi-billion-dollar competition for the next-generation disc format, one that effectively put capex and strategic planning on hold for both disc makers and equipment manufacturers.
Singulus, which has the largest market share in the global optical disc line manufacturing sector, seemed particularly happy. The company had held an open house a week earlier at its factory in Kahl am Main, Germany, to introduce the BD 50, its newest Blu-ray line that can manufacture the 50-GB iteration of the format. Sylvia Hitzel, v.p. of sales & marketing for Singulus, told EMedialive that the company is convinced that 50GB will be the version of choice in the U.S., where quick market traction for the format is critical to success. “The format is already moving in the U.S. and we expect Europe will begin to expand it capacity within the next few weeks,” she said, estimating that current sales of 15 lines in place or on order will increase by over 50% in Q2.
In the wake of a presentation on Blu-ray by Mike Mitchell, EVP and CTO at replicator Sony DADC, in which he outlined the format’s technical and manufacturing vision going forward, the talk turned to how quickly a Blu-ray infrastructure could be achieved and what would drive it. Cedric Collard, marketing manager for Austrian-based measurement/testing/optimization equipment maker Datarius, said quickly ramping up capacity could prove challenging. “It was a long war with a sudden end,” he said. “In the meantime, many of the line manufacturers in this business are gone, including Krauss-Maffei, 4M and Steag.”
In fact, only three companies globally have lines ready for sale – Singulus, Sony’s own lines and China-based Anwell; Sweden’s M2 has a BD 25 line that will be ready to ship by Q4. “But there have been a lot of BD-related product announcements recently, so I believe the technology is ready.”
Bob Freedman, CTO at replicator and post house Crest Digital in Los Angeles, said that getting the manufacturing infrastructure together was the first priority for the format, and that Sony was doing a good job getting information and support to potential users. However, like most replicators outside of the small top tier in the U.S. that already have BD lines in place--Sony’s DADC, BMG’s Sonopress, Cinram, and Technicolor--Freedman says his company will wait until its customer base develops sufficient demand for BD.
Pierre Van Dongen, sales agent for Anwell, which recently sold its first BD 25 line in the U.S. to CD Video in California, said he has been receiving “numerous” RFQs (requests for quotes) from replicators, including mid-tier disc manufacturers. “The expectation is that in the short term, at least, there will be more demand than capacity, so the mid-tier replicators are evaluating the possibilities of overflow from the majors and from independent studios,” he said. “What will be the challenge is not building the lines but rather installing them, training on them and support, because the BD [manufacturing] process is still evolving.”
More Than BluBD may have been the big buzz, but Media-Tech had other components. It was the first time that the Frankfurt, Germany-based organization partnered its show with AIMMA(American Independent Media Manufacturers Association), IDDA (International Disc Duplicating Association), and the DVDA (DVD Association). Media-Tech managing director Bryan Ekus said, “Blu-ray’s emergence as the next-gen format is a signal for the industry to come back together.”
Gary Reeves, president of Rochester-based duplicator Spinergy and an AIMMA member, agreed but added that physical media is diverse enough to warrant subgroups that can focus on specialized facets of the business, such as AIMMA’s Colonial Purchasing co-op, which lets members pool consumables purchases to obtain larger volume discounts. Till this year, only replicators in AIMMA could participate; at their meeting during Media-Tech this year, the organization extended it to duplicators, as well. Media-Tech’s European expo is scheduled for May 6-8 in Frankfurt.
Dan Daley (danwriter at aol.com) is an experienced journalist and author, covering the business and technology of the entertainment industry for over 20 years. His work has appeared in numerous publications, both trade and general interest, including Billboard, The New York Daily News, Mix Magazine, GRAMMY Magazine, American Way, Spin, History Channel, TravelHost, International Business, USA Today, ArchiTech, and many others.
Source
Thursday, December 13, 2007
ANWELL: Strong cashflow from newly-acquired discs manufacturers
Written by Leong Chan Teik
Wednesday, 12 December 2007
At the Henan Kerry plant which Anwell acquired in early Nov'07, Ken Wu points out to Singapore analysts that its customers include Samsung, Kodak and Tesco. Photo by Leong Chan TeikSINCE its founding in 2000, Anwell Technologies has been an innovative manufacturer of equipment that makes optical discs, a term that mainly refers to CD-Rs and DVDRs.
Today, it is the second largest manufacturer of optical disc equipment in the world. Its machines are the fastest, a feature that customers value because about 20% more discs can be produced in a given time.
Reflecting a new dominance by Anwell in overseas markets, 50% of its HK$442-million in sales in the first nine months of this year were to South America. Another 5 % were to Europe and India, and the rest, to Hong Kong and China.
In contrast, in 2004, Hong Kong and China accounted for 99% of its sales.
“In the earlier years, customers in other parts of the world did not believe that machines as good as ours could be made in China,” recalled Ken Wu, an executive director of Anwell, whose headquarters is in Hong Kong.
The customers bought from Singulus, the German company that is currently the No.1 in the world but it continues to lose market share to Anwell.
In a strategic move, Anwell last month acquired two companies which use Anwell machines to make optical discs. They are the two largest manufacturers of DVDRs in China. With the acquisition, Anwell has become not only the largest optical disc manufacturer in China but also the 5th largest manufacturer of DVDRs in the world.
Reception area of Henan Kerry plant. On the left is Kim Eng analyst Geraldine Eu. Photo by Leong Chan Teik
Henan and Jilin: lowest operating costs in the world
Last week, NextInsight and a group of analysts visited Henan Kerry Digital, one of Anwell’s optical disc manufacturers.
It is located in Henan province about two hours by flight from Shenzhen. By the way, Henan province, the most populous in China, is best known as being home to the Shaolin Temple.
Henan Kerry enjoys operating costs that are among the lowest in its industry worldwide. Even lower are those enjoyed by Jilin Qingda Digital which is located further north in the province of Jilin. In total, the two manufacturers employ 1,200 people.
Average salary (HK$/month) Henan Jilin Hong Kong
Senior management 10-20K 7-10K 70-200K
Engineers 1-3K 1-3K 15-30K
Machine operators 1-1.5K 1-1.5K 8-15K
Henan Kerry (Rmb) Jilin Qingda (Rmb) Hong Kong (HK$)
Water 2.75/ton 3.59/ton 4.58/ton
Electricity 0.48/Kwh 0.47/Kwh 1/Kwh
Factory (for sale)* 124/sqf 75/sqf 2,000/sqf
*For reference only
Henan province is home to the Shaolin Temple.That’s why Henan Kerry, for example, had sales of US$21.2 million and gross profit of US$4.1 million last year, and counts Samsung, Kodak and Tesco, the world's third-largest retailer behind Wal-Mart and Carrefour, among its customers.
In comparison, Henan Kerry's and Jilin Qingda's main competitors – who are largely Taiwanese operating mainly in Taiwan – suffered losses.
And given the relatively low operating costs in Asia, there are no manufacturers of recordable discs which operate in high-cost regions such as Europe and the US, explained Ken.
This year, the financial numbers for Anwell’s newly-acquired disc division - which includes UmeDisc, the Hong Kong marketing arm for Henan Kerry and Jilin Qingda - will continue to be pretty, going by management guidance.
In the first 8 months of this year, the division had chalked up HK$66 million in net profit on more than HK$500 million in sales while its listed Taiwanese competitors continue to lose money.
“The disc manufacturing division is a stable business and will be a cash cow for the Anwell group, which will help fund our R&D in the equipment business,” said Ken.
Henan Kerry and Jilin Qingda have more than 150 customers. No single customer accounts for more than 10% of sales.
Anwell's equipment, the fastest in the world, has been used by Henan Kerry and Jilin Qingda for a few years. Photo by Leong Chan Teik
Anwell machine at Henan Kerry plant. Photo by Leong Chan TeikBenefits of being part of Anwell family
Henan Kerry and Jilin Qingda Digital will have a new key benefit from being part of the Anwell group: Their production capacity and capability can be enhanced at a lower cost.
Anwell is the world’s only optical disc manufacturer capable of producing its own manufacturing equipment. “This means that for any new investment in production capacity, our competitors use, say, $100 to buy equipment, we spend only $50 to build our equipment,” said Ken.
“The vertical integration is very important when the next-generation product comes around. That’s when the profit
Singapore analysts enjoying Henan delicacies. Photo by Leong Chan Teikmargin is very high for both the equipment and disc manufacturers,” said Ken. Subsequently, over a few years, margins will drop as the product becomes a commonplace commodity.
The acquisitions were valued at a total of HK$449 million and were paid with:
* 1.33 billion new Anwell shares pegged at 6 cents a share; and
* HK$50 million in non-convertible notes.
“The vendors believe in the future of Anwell,” said Ken on the payment mode. Two vendors – Luk Fung and Lau Suet Yi – have become substantial shareholders with 17% and 8.4% stakes in Anwell, respectively.
Henan Kerry and UmeDisc have become 100% own subsidiaries but not Jilin Qingda, which is 51%-owned by Anwell.
What is the future of optical discs? After CD-Rs, the next generation of optical discs was DVDRs, which have a capacity of 4.7 GB compared to 700 MB for CD-Rs.
Coming next: HD DVDs with capacities of 15 GB and Blu-ray discs of 25GB. Anwell is developing the technology to build equipment that manufactures HD DVDs and Blu-ray discs.
Franky Fan, founder, chairman and CEO of Anwell. Photo by Leong Chan Teik
This is the first of two articles arising from the trip that NextInsight made. Article to be published next week: Why does Anwell CEO Franky Fan think Anwell’s future is bright?
Wednesday, 12 December 2007
At the Henan Kerry plant which Anwell acquired in early Nov'07, Ken Wu points out to Singapore analysts that its customers include Samsung, Kodak and Tesco. Photo by Leong Chan TeikSINCE its founding in 2000, Anwell Technologies has been an innovative manufacturer of equipment that makes optical discs, a term that mainly refers to CD-Rs and DVDRs.
Today, it is the second largest manufacturer of optical disc equipment in the world. Its machines are the fastest, a feature that customers value because about 20% more discs can be produced in a given time.
Reflecting a new dominance by Anwell in overseas markets, 50% of its HK$442-million in sales in the first nine months of this year were to South America. Another 5 % were to Europe and India, and the rest, to Hong Kong and China.
In contrast, in 2004, Hong Kong and China accounted for 99% of its sales.
“In the earlier years, customers in other parts of the world did not believe that machines as good as ours could be made in China,” recalled Ken Wu, an executive director of Anwell, whose headquarters is in Hong Kong.
The customers bought from Singulus, the German company that is currently the No.1 in the world but it continues to lose market share to Anwell.
In a strategic move, Anwell last month acquired two companies which use Anwell machines to make optical discs. They are the two largest manufacturers of DVDRs in China. With the acquisition, Anwell has become not only the largest optical disc manufacturer in China but also the 5th largest manufacturer of DVDRs in the world.
Reception area of Henan Kerry plant. On the left is Kim Eng analyst Geraldine Eu. Photo by Leong Chan Teik
Henan and Jilin: lowest operating costs in the world
Last week, NextInsight and a group of analysts visited Henan Kerry Digital, one of Anwell’s optical disc manufacturers.
It is located in Henan province about two hours by flight from Shenzhen. By the way, Henan province, the most populous in China, is best known as being home to the Shaolin Temple.
Henan Kerry enjoys operating costs that are among the lowest in its industry worldwide. Even lower are those enjoyed by Jilin Qingda Digital which is located further north in the province of Jilin. In total, the two manufacturers employ 1,200 people.
Average salary (HK$/month) Henan Jilin Hong Kong
Senior management 10-20K 7-10K 70-200K
Engineers 1-3K 1-3K 15-30K
Machine operators 1-1.5K 1-1.5K 8-15K
Henan Kerry (Rmb) Jilin Qingda (Rmb) Hong Kong (HK$)
Water 2.75/ton 3.59/ton 4.58/ton
Electricity 0.48/Kwh 0.47/Kwh 1/Kwh
Factory (for sale)* 124/sqf 75/sqf 2,000/sqf
*For reference only
Henan province is home to the Shaolin Temple.That’s why Henan Kerry, for example, had sales of US$21.2 million and gross profit of US$4.1 million last year, and counts Samsung, Kodak and Tesco, the world's third-largest retailer behind Wal-Mart and Carrefour, among its customers.
In comparison, Henan Kerry's and Jilin Qingda's main competitors – who are largely Taiwanese operating mainly in Taiwan – suffered losses.
And given the relatively low operating costs in Asia, there are no manufacturers of recordable discs which operate in high-cost regions such as Europe and the US, explained Ken.
This year, the financial numbers for Anwell’s newly-acquired disc division - which includes UmeDisc, the Hong Kong marketing arm for Henan Kerry and Jilin Qingda - will continue to be pretty, going by management guidance.
In the first 8 months of this year, the division had chalked up HK$66 million in net profit on more than HK$500 million in sales while its listed Taiwanese competitors continue to lose money.
“The disc manufacturing division is a stable business and will be a cash cow for the Anwell group, which will help fund our R&D in the equipment business,” said Ken.
Henan Kerry and Jilin Qingda have more than 150 customers. No single customer accounts for more than 10% of sales.
Anwell's equipment, the fastest in the world, has been used by Henan Kerry and Jilin Qingda for a few years. Photo by Leong Chan TeikAnwell machine at Henan Kerry plant. Photo by Leong Chan TeikBenefits of being part of Anwell family
Henan Kerry and Jilin Qingda Digital will have a new key benefit from being part of the Anwell group: Their production capacity and capability can be enhanced at a lower cost.
Anwell is the world’s only optical disc manufacturer capable of producing its own manufacturing equipment. “This means that for any new investment in production capacity, our competitors use, say, $100 to buy equipment, we spend only $50 to build our equipment,” said Ken.
“The vertical integration is very important when the next-generation product comes around. That’s when the profit
Singapore analysts enjoying Henan delicacies. Photo by Leong Chan Teikmargin is very high for both the equipment and disc manufacturers,” said Ken. Subsequently, over a few years, margins will drop as the product becomes a commonplace commodity.
The acquisitions were valued at a total of HK$449 million and were paid with:
* 1.33 billion new Anwell shares pegged at 6 cents a share; and
* HK$50 million in non-convertible notes.
“The vendors believe in the future of Anwell,” said Ken on the payment mode. Two vendors – Luk Fung and Lau Suet Yi – have become substantial shareholders with 17% and 8.4% stakes in Anwell, respectively.
Henan Kerry and UmeDisc have become 100% own subsidiaries but not Jilin Qingda, which is 51%-owned by Anwell.
What is the future of optical discs? After CD-Rs, the next generation of optical discs was DVDRs, which have a capacity of 4.7 GB compared to 700 MB for CD-Rs.
Coming next: HD DVDs with capacities of 15 GB and Blu-ray discs of 25GB. Anwell is developing the technology to build equipment that manufactures HD DVDs and Blu-ray discs.
Franky Fan, founder, chairman and CEO of Anwell. Photo by Leong Chan Teik
This is the first of two articles arising from the trip that NextInsight made. Article to be published next week: Why does Anwell CEO Franky Fan think Anwell’s future is bright?
Thursday, December 6, 2007
Saturday, November 17, 2007
ANWELL: Turnaround story fast unfolding
ANWELL: Turnaround story fast unfoldingWritten by Leong Chan Teik
Tuesday, 13 November 2007
INCREASINGLY PROVING to be a turnaround story, Anwell Technologies ended Q3 ended Sept ’07 with its third consecutive quarter of sales and profit growth.
It is riding on the start of a three- or four-year uptrend in its industry of manufacturing equipment that produces optical discs such as DVDRs.
Anwell is the second largest such manufacturer in the world after Singulus of Germany.
Anwell and Singulus are about the only ones alive after the severe industry downturn and consolidation of 2005-2006, and it has positive implications for them.
“This gives us room to increase price and margin,” said Ken Wu, Anwell’s executive director, in a teleconference with analysts last Friday afternoon (Nov 9).
The margin improvement he spoke of is reflected in the Q3 results: Gross margin was 25.5% in Q3, up from 11.7% in Q3 of last year.
Better still, Anwell is set to include the contribution from three newly-acquired companies to its top and bottom line.
In the first 8 months of this year, the trio chalked up a total of HK$66 million in net profit on more than HK$500-million sales. Going forward, sales are expected to rise as their production capacity is currently being expanded.
More good news: Ken said that Anwell is pushing into 2 new areas of business. They are:
- Anwell is on the verge of penetrating a new market, the Middle East, to sell its equipment for manufacturing optical discs.
- It expects to make its maiden sale of equipment for making OLED panels (for MP3, mobile phones, etc) to customers in China next year. Profit margins for this business are much higher than for Anwell's optical disc manufacturing equipment business.
“When we want to diversify into another industry, we look for something with similar technologies. We position ourselves not just as a company for the optical industry but as a high-tech equipment manufacturer located in a low-cost country.”
Anwell's current and only business of making equipment for manufacturing optical discs is on the upswing, as reflected in the Q3 results:
- Sales jumped 114% to HK194 m from 3Q 3006.
- Operating profit improved to HK$19 million from a loss of HK$9 million.
Due to the accounting treatment for the fair value of convertible notes signed a few months ago, Anwell had to write off HK$9 million from its Q3 net profit. Net profit thus stands at HK$6.3 million versus a HK$10.8 m loss previously.
“In the next few quarters, the convertible notes will have some impact on the bottomline – it may be a positive or negative impact,” said Ken, adding that the calculation for it is complex and an external valuer does the job using a binomial model.
Boom in sale of DVDRs
While demand for Anwell’s equipment is rising, the finished product - optical discs – too is enjoying a surge in sales worldwide.
That bodes well for Anwell which, on Nov 7, completed its HK$449-million acquisition of three manufacturers of optical discs – Umedisc in Hong Kong, and Media Delta and Metroworld in China.
They will contribute two months (Nov and Dec) of their performance to Anwell’s top and bottom line for FY ‘07.
With the acquisition, which was paid for through the issue of about 1.33 billion new Anwell shares at 6 cents a share and HK$50 million in non-convertible notes, Anwell is vertically integrated: not only does it manufacture equipment that makes optical discs, it also manufactures optical discs themselves.
And it does so from China, where the relatively low operating costs will enable it to perform better than its Taiwanese rivals.
Franky Fan, Anwell chairman and CEO, said: “With this acquisition, we are the world’s only optical disc manufacturer capable of producing its own manufacturing equipment. This will give us a significant cost and efficiency advantage over our competitors.”
Here are highlights of the Q&A session analysts had with Ken Wu after the Q3 results were announced:
Q: Was the increase in sales of the 3 disc manufacturers this year due to expanded production capacity?
A: Not entirely: 20-25% of the sales came from purchases from other suppliers.
Q: What’s Q4 looking like? Will you be able to realize most of your order book by year-end?
A: Yes, we can realize most of the order book and there’ll be a positive impact from the disc-manufacturing businesses.
Q: During the past good years, Q4 was the best period. Is that going to continue?
A: In the past, we relied on Chinese customers who are busiest in Q4, and we had only the recordable disc business. Now we have a global market and the pre-recorded disc business, so we are more diversified and the seasonal effect is not there.
Q: For the disc-manufacturing business, is Q4 the highest production quarter in the year?
A: Usually, Q3 and Q4 are the best because the consumer market is the best during the Christmas season. The order book for our disc manufacturing business has been very good. And because of the scale of our group, our purchase price for polycarbonate and some other key materials are lower compared to a year ago. So, the gross margin for this disc business has improved compared to a year ago.
Q: Is Anwell affected by the rise in oil price?
A: No. Oil price is one of the factors that influence the price of optical-grade polycarbonate but it is not the most important factor. We are one of the biggest customers of suppliers in HK and China, and we are getting better terms and prices.
Q: Why are you expanding capacity for your disc manufacturing?
A: Our capacity utilization now is more than 90%. To us, that’s almost 100% because some machines are going through modification. If we expand capacity, we target to have a return period of two years: Every dollar we put in will have to come back within two years.
Q: Can you comment on the stock purchase by 3 directors recently?
A: We – the CEO, COO and myself – are major shareholders and we are of the view that the current stock price doesn’t reflect the true value of the company. Instead of investing in property or other shares, we think our company is a good investment for ourselves.
Friday, November 16, 2007
Anwell Technologies Limited
Anwell Technologies Limited.
Anwell, headquartered in Hong Kong, is a global supplier of advance optical media equipment and process technologies. Founded in Year 2000, Anwell is committed to offering an integrated manufacturing solution to the DVDR and CD-R replication industries. With the manufacturing plant and R&D base in Dongguan, China and the head office in Hong Kong, Anwell has over 200 professionals delegated to equipment design, production, R&D and aftersale service. In order to prepare for future development, we have expanded our capacity in 2004 by opening of a new production plant in Dongguan with over 5,000 square meters. With ISO9001 certification granted in 2000, quality assurance of Anwell is now sanctioned by the world. By integrated with innovative production concepts, Anwell has developed DVDR / CD-R Production Systems, Offline Bonding Machines, DVDR/CD-R Dye Coaters, Stamper Cleaning Machines, ID Code Checking Machines, DVDR/CD-R Grading Machines, Product Code Printers, DVD Stamper Players, etc to meet the needs of the optical media industry.
With an active client base across China, Hong Kong, Taiwan, South East Asia and Europe, Anwell has established itself as a leading supplier of optical media equipment in the region. With our strengths in R&D, process technology and aftersale service, Anwell will continue to develop new products and provide extraordinary aftersale service to our customers.
Anwell, headquartered in Hong Kong, is a global supplier of advance optical media equipment and process technologies. Founded in Year 2000, Anwell is committed to offering an integrated manufacturing solution to the DVDR and CD-R replication industries. With the manufacturing plant and R&D base in Dongguan, China and the head office in Hong Kong, Anwell has over 200 professionals delegated to equipment design, production, R&D and aftersale service. In order to prepare for future development, we have expanded our capacity in 2004 by opening of a new production plant in Dongguan with over 5,000 square meters. With ISO9001 certification granted in 2000, quality assurance of Anwell is now sanctioned by the world. By integrated with innovative production concepts, Anwell has developed DVDR / CD-R Production Systems, Offline Bonding Machines, DVDR/CD-R Dye Coaters, Stamper Cleaning Machines, ID Code Checking Machines, DVDR/CD-R Grading Machines, Product Code Printers, DVD Stamper Players, etc to meet the needs of the optical media industry.
With an active client base across China, Hong Kong, Taiwan, South East Asia and Europe, Anwell has established itself as a leading supplier of optical media equipment in the region. With our strengths in R&D, process technology and aftersale service, Anwell will continue to develop new products and provide extraordinary aftersale service to our customers.
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