March 9, 2010, When I visited HG Genuine (www.genuine-opto.com/english/index.jsp), a Wuhan transceiver company, in last summer, the company gave me an unexpected welcome, and their optimism towards the whole year also gave me very deep impression.
HG Genuine was founded in the bubble times. As a transceiver star-up, the company once attracted many talented engineers and sales. But with the break-up of the bubble, HG Genuine entered a long-term difficult time. It was once considered to have the best transceiver manufacturing facility in Asia, but it still could not acquire big customers. As a result, HG Genuine had to work with small sized customers who are often of bad credit on payment. In China’s fiber optics industry, many people were once pessimistic towards this company, but HG Genuine survives till now, and the company has really grown up.
According to HG Genuine’s parent company, Huagong Tech (000988 Shenzhen Stock Market)’s 2009 financial report, in the last year, HG Genuine’s revenue reached 292.5million RMB (42million USD), a 74% increase compared to year 2008. In year 2009, HG Genuine’s net profit is 33.84 million RMB, there is no data to compare in year 2008. The gross profit rate in year 2009 is 24.45%, a 0.85% decrease compared to year 2008. Now, Huawei, ZTE, Raisecom (one of the largest medium converter manufacture in China), Optowiz (a Korean transceiver company) are the 4 largest customers of HG Genuine. In year 2009, Huawei purchased 62 million transceiver form them, ZTE also purchased 58million from HG Genuine. In year 2009, Alcatel-Lucent, Nokia Siemens also became their customers.
HG Genuine owes their success in year 2009 to China’s large scale 3G construction. The company pointes out that there will be 5 new market opportunities for them in the short future, continuous 3G construction, further deployment of FTTH in China, launch of next generation PTN network, coming triple-play services by telecom and Cable TV service providers, the new M2M application. China’s telecom market will continue to increase in coming years, and international market will have a recovery. Based on all these, HG Genuine predicates that they will have a 40% CAGR in the coming 3 years, which means their revenue will come to 800 million RMB in year 2012.
More news about China fiber optics industry, Please visite www.cordacord.com
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