Hollysys Automation Technologie (NASDAQ:HOLI)

BEIJING, Sept. 27, 2019 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the Board of Directors of Hollysys has declared an annual cash dividend of $0.21 per ordinary share for 2019. The dividend will be payable on or about November 12, 2019 to shareholders of record at the close of business on October 22, 2019.

The declaration of future cash dividends, pursuant to the Company's dividend policy, is subject to final discretion of the Board of Directors based on a number of factors, including but not limited to, the Company's financial performance, its available cash resources, capital requirements and its investment opportunities. Accordingly, there can be no assurance that dividends in the future will be equal or similar in an amount to the amount described in this press release or that the Board of Directors will not decide to suspend or discontinue, altogether, the payment of cash dividends in the future.

Hollysys' management said: "We are pleased to return value to shareholders through paying regular cash dividend. We greatly appreciate the support of Hollysys' shareholders and are very glad to be able to reward their support with paying them the cash dividend, which we believe is a prudent use of cash. In future, our Board of Directors will continue to evaluate Hollysys' ongoing financial and operational performance in determining the amount and timing of future dividends to ensure they are strategically aligned to enhance shareholder value."

Fourth Quarter 2019 Financial Results

• Total revenues were $157.0 million, an increase of 6.6% compared to the comparable prior year period.
• Non-GAAP diluted EPS was $0.42, a decrease of 8.7% compared to the comparable prior year period.

IA business finished the fiscal year with revenue and contract at $233.8 million and $291.3 million, achieving 4.0% and 2.5% YOY growth respectively. For the quarter, revenue and new contract were $66.6 million and $83.9 million, representing 4.0% and 0.9% YOY growth respectively. We continued our effort in market penetration and addressing the demand from current customer base. Within high-end coal fire market, we signed contracts to provide DEH (Digital Electric Hydraulic Control System) to Guohua Jinjie 2*660MW and Huaneng Shengli 2*660MW power stations. Despite slowdown in coal fire, we continued to explore opportunities in new energy, and managed to maintain our leading position, especially in garbage power. In the chemical and petrochemical industries, we have optimized our team to facilitate market penetration and comprehensive solution offering in different sub-verticals. Meanwhile, our milestone Zhong'an coal-chemical project is approaching its completion. We provided in total over 70,000 DCS control points and the execution of the project last for more than two years. Our capability has been highly praised by our client and we believe this project will help build up our reputation as a competitive solution provider for large-size projects and high-end clients in the industry. The momentum of after-sales services continued, driven by the demand from rebuilding and upgrade. We are also improving internal coordination when connecting with our customer base. Through visiting our clients in a team of members from different product divisions, we hope to create better engagement and explore the opportunities of cross-selling. Furthermore, we are actively promoting our smart plant initiatives through direct communication with key potential clients as well as open marketing activities involving clients, governments and other industry players.  

Rail business finished the fiscal year with revenue and contract at $208.9 million and $340.3 million, recording 9.6% and 37.7% YOY growth respectively. For the last quarter, revenue and contract were $48.3 million and $60.8 million, representing 19.6% and 4.6% YOY growth respectively. We signed several contracts to provide ATP advanced maintenance to local railway bureaus. Going forward and given a visible long-term railway construction plan, we will continue to adhere to the diversity strategy for stable and healthy growth and to improve our local service network for more value-adding and differentiated services. With urbanization as an ongoing process, we will keep leveraging our strong R&D capacity and prepare for the application of various types of railway transportation systems in the future.  

In our overseas business, M&E finished the fiscal year with revenue and contract at $127.6 million and $93.4 million, recording 1.8% YOY growth and 9.1% YOY decrease respectively. For the quarter, revenue and contract were $42.1 millionand $25.2 million, representing 1.7% and 37.0% YOY decrease. Given the macro economy in Southeast Asia and the Middle East, risk control remains to be the key focus of our M&E business. Going forward, we will continue our effort in developing partnership with key EPC players, and strengthening localization in manufacture, marketing and services.

Third Quarter 2019 Financial Results

• Total revenues were $125.2 million, an increase of 3.8% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.46, an increase of 27.8% compared to the comparable prior year period.

BEIJING, April 8, 2019 /PRNewswire/ -- Hollysys Automation Technologies Ltd. ("Hollysys" or the "Company") (NASDAQ: HOLI), a leading provider of automation and control technologies and applications in China, today announced its intention to offer 7,800,000 of its ordinary shares through an underwritten public offering. In connection with the offering, Hollysys expects to grant to the underwriter a 30-day option to purchase up to 1,170,000 additional ordinary shares.

Citigroup Global Markets Inc. is acting as the sole book-running manager for the offering.

A shelf registration statement on Form F-3ASR relating to the ordinary shares offered in the public offering described above was filed with the Securities and Exchange Commission (the "SEC") on April 8, 2019 and was automatically effective upon filing. The offering of the ordinary shares is being made only by means of a preliminary prospectus supplement and accompanying base prospectus, copies of which may be obtained on the SEC's website located at http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the ordinary shares being offered may also be obtained from Citigroup Global Markets Inc., Attention: Broadridge Financial Solutions at 1155 Long Island Avenue, Edgewood, New York 11717, United States of America or by telephone at +1 (800) 831-9146.

Second Quarter 2019 Financial Results

• Total revenues were $149.5 million, a decrease of 5.0% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.73, an increase of 21.7% compared to the comparable prior year period.

BEIJING, Nov. 29, 2018 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has recently won contracts with a total value of approximately RMB 337.5 million or USD $48.6 million. One is to provide to the Henan section of the Zhengzhou-Wanzhou High Speed Railway a comprehensive set of highway signaling products including TCC (Train Control Center), TSRS (Temporary Speed Restriction Server) and LEU (Lineside Electronic Unit) with a total value of approximately RMB 72.2 million or USD $10.4 million. The other is to provide 98 sets of Automatic Train Protection (ATP) for high-speed trains in 300-350km/h covering equipment, system and relevant service packages, with a total value of approximately RMB 265.3 million or USD $38.2 million.

Hollysys' management commented: "We feel excited about the significant high-speed rail contract win, which demonstrates our solid technology capability and our key market position. In the future, Hollysys will continue to work closely with both national and provincial railway authorities. Leveraging our strong R&D capability, effective management and high-quality products and services, we will continue to make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and to create value for our shareholders."

First Quarter 2019 Financial Results

• Total revenues were $138.7 million, an increase of 20.1% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.46, an increase of 27.8% compared to the comparable prior year period.

BEIJING, Sept. 27, 2018 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the Board of Directors of Hollysys has declared an annual cash dividend of $0.18 per ordinary share for 2018. The dividend will be payable on or about November 12, 2018 to shareholders of record at the close of business on October 22, 2018.

The declaration of future cash dividends, pursuant to the Company's dividend policy, is subject to final discretion of the Board of Directors based on a number of factors, including but not limited to, the Company's financial performance, its available cash resources, capital requirements and its investment opportunities. Accordingly, there can be no assurance that dividends in the future will be equal or similar in amount to the amounts described in this press release or that the Board of Directors will not decide to suspend or discontinue, altogether, the payment of cash dividends in the future.

Hollysys' management said: "We are pleased to return value to shareholders through paying regular cash dividend. We greatly appreciate the support of Hollysys' shareholders and are very glad to be able to reward their support with paying them the cash dividend, which we believe is a prudent use of cash. In future, our Board of Directors will continue to evaluate Hollysys' ongoing financial and operational performance in determining the amount and timing of future dividends to ensure they are strategically aligned to enhance shareholder value."

BEIJING, Sept. 24, 2018 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today issued a press release on the commencement of operation of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) Hong Kong section:

A new page is open for the cross-boundary travel between Hong Kong and the Mainland of China as the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) was finally put into operation on September 23rd, 2018. With the commencement, Hong Kong is now connected to over 25,000 km high speed rail network in the Mainland of China. The commute between Hong Kong West Kowloon Station and Shenzhen Futian Station will take only 15 minutes. Hollysys feel truly happy for the greater connectivity between the Mainland of China and Hong Kong and we sincerely like to congratulate on and celebrate this historic event.

We are also honored and excited to have assumed the roles as the prime contractor responsible for designing, supplying and implementing the High-Speed Rail Signaling Systems and SCADA system for the MTR Corporation starting from 2012. Such sentiment is even more intense given the stiff competition from other world class signaling system providers back then.

Looking back, the project was of tremendous significance to us, with numerous milestones achieved. The entire 26km of the Hong Kong section of the XRL will be run underground is itself of distinctiveness, let alone the difference in administration, regulation, etc. associated with an international project. It was the first time that Hollysys has won international contract for high-speed rail signaling system. It was the first time that Chinese C3 high-speed rail signaling system has been applied in outside of the Mainland of China. And it was the first time that Hollysys has not only provided high-speed rail signaling products certified under international standard, but also comprehensively executed and managed the project under international standard. These milestones were made even more significant as Hollysys won the Quality Award of MTR for five consecutive years, a strong evidence in our ability to guarantee project quality. At this moment, we share our happiness with the people who will benefit from the operation, we feel grateful to the MTR Corporation for all the trust along the way, and we take pride in ourselves.

Going forward, we are extremely delighted to be able to safeguard people's travel within the XRL Hong Kong section as we will be providing maintenance service to MTR following the commencement of operation. With our high-quality performance in the Hong Kong project, our high-speed rail signaling products, certified under both national and international standard, have now been applied in projects both within and outside of the Mainland of China. We are confident that our capacity as a trust-worthy long-term railway business partner has been further proven. We will continue to explore opportunities in home and abroad, to bring people closer in a safe and convenient manner, to steer our rail business to the next level in the global arena, and to create value for our shareholders.

Fourth Quarter 2018 Financial Results

• Total revenues were $147.2 million, an increase of 6.7% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.46, an increase of 24.3% compared to the comparable prior year period.

BEIJING, June 28, 2018 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced the departure of Ms. Herriet Qu, who resigned from the position of Chief Financial Officer of the Company due to personal reasons, and the appointment of Mr. Steven Wang as the new Chief Financial Officer, both effective June 28, 2018.

Mr. Wang has over 15 years of experience in financial controlling, accounting and budgeting, tax planning, and corporate investment in various investment institutions and multinational corporations, with deep familiarity with rules and regulations of US and Chinese capital markets. Prior to joining Hollysys, Mr. Wang served as the Chief Financial Officer and Vice President of Xinhua Lian Investment Co., Ltd., a subsidiary of a top 500 company in China. From 2005 to 2012, Mr. Wang worked at various managerial positions at Globe Specialty Metals Inc. and Zhonglian Zhongke Co., Ltd., a Hong Kong Stock Exchange listed company. Mr. Wang received an MBA degree in Finance from the Wharton School, the University of Pennsylvania.

Ms. Herriet Qu, the departing CFO, commented, "It is truly my honor for being part of Hollysys' team. Together I have grown with the Company over the past ten years and I am glad to see that Hollysys' operational and financial management is now more solid to embrace the next phase of development. I will continuously cheer for every success achieved by Hollysys on the side-line."

Mr. Baiqing Shao, Chairman and CEO of Hollysys, commented, "Herriet has been a great addition to Hollysys team in her more than 10 years' service starting from a financial controller. Great changes have taken place in Hollysys under her leadership, and we have seen the Company's financial operation becoming increasingly well managed. We would like to extend to her our gratitude for her contributions and sincerely wish her best luck! I would also like to extend my warm welcome to Mr. Wang for joining Hollysys. Going forward, I will work closely with Mr. Wang and his team and Hollysys will continue to bring quality solution, product, and service to our customers."

Third Quarter 2018 Financial Results

• Total revenues were $120.6 million, an increase of 32.1% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.36, an increase of 63.6% compared to the comparable prior year period.

Outlook for FY 2018

The management concluded, "Based on our backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2018 with revenue in the range of $500 million to $530 million and non-GAAP net income in the range of $100 million to $110 million."

Second Quarter 2018 Financial Results

• Comparing to the second quarter of the prior fiscal year, the total revenues for the three months ended December 31, 2017 increased from $99.1 million to $157.4 million, representing an increase of 58.8%.
• GAAP diluted EPS was $0.60 vs. last years $0.17.

Industrial automation remained on the track of recovery, with revenue recording a 25.9% year-over-year growth, at $57.6 million. Management team has adhered to the low-to-high end market expansion strategy in industries such as chemical and petro-chemical, etc. while building comprehensive service capacity to address the substantial aftersales potential from the entire customer base and seeking new opportunities from existing end-users. On the chemical industry, we signed a contract with Jinan Taixing Fine Chemicals Company to provide system for their polyphosphazene project, a contract with Jiangsu Jingshen Salt & Chemical Industry Co., Ltd to provide Manufacturing Execution System for information integration of their salt packaging and distribution center. On the petro-chemical industry, we signed a contract with China Petroleum & Chemical Corporation to provide DCS and instruments for their liquid chemical wharf project. We entered into a strategic cooperation agreement with CEET, a wholly-owned subsidiary of China National Offshore Oil Corporation to collectively push forward the localization of core equipment on offshore oil platform. In the new energy and food-beverage area, we signed a contract to provide system for Chia Tai Group's recycling of waste project and a contract with Lihua Starch Co., Ltd for their sorbitol project.

Our demonstration-for-further-application strategy in factory automation has brought us more market recognition. We earned government level recognition as we were listed as one of the 23 intelligent manufacturing system solution providers recommended by the Ministry of Industry and Information Technology. We continued to focus on several key industries and cooperate with renowned players. On white-goods, our cooperation with Haier went further as we signed contracts on their Tianjin-based and Qingdao-based washing machine factories. On food beverage area, we are dedicated to provide innovative solution to address safety and efficiency issues. Upon the successful delivery of the first project, our relationship with Hai Di Lao went deeper, with regular communication mechanism set. We expect broader cooperation with them and more clients in the future.

The performance of high speed rail was prominent in this quarter, with revenue recording a 199.0% year-over-year growth at $69.6 million. One of the contributors is the significant increase in aftersales order, including ATP maintenance and replacement contracts. Signing 80 sets of automatic train protection (ATP) to high speed trains in 300-350km/h also contributed greatly to the revenue because of the tightening delivery schedule to secure the Spring Festival Travel. Breakthrough has been made in our new product as we signed our first tract circuit contract for Chengdu-Ya'an regular speed railway line. In subway, we signed SCADA contract for Chengdu Subway Line 5. We will adhere to the expansion strategy to win SCADA contracts in more cities and work closely with subway authorities to promote our SCADA system and subway signaling technologies in future. Management team will adhere to the diversity strategy to create revenue stream from more new products and services, and to maintain a stable and healthy growth into the future.

In oversea business, we signed several EPC contracts with domestic companies, including a contract with Shandong Ludian Co. Ltd to provide DCS for 2X350MW power station in Indonesia. Mechanical and electrical installation services recorded a 0.4% revenue growth at $30.2 million. We continued to address operation, management and risk control issue to ensure that projects can be delivered in good quality, while closely following economic and political circumstances in South East Asia and Middle East. Concord and Bond remained active in seeking business opportunities and we believe that their strategic value as customer resources and international sales channels remains significant.

Outlook for FY 2018

The management concluded, "Based on our backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2018 with revenue in the range of $500 million to $530 million and non-GAAP net income in the range of $100 million to $110 million."

First Quarter 2018 Financial Results

• Total revenues were $115.5 million, an increase of 11.6% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.36, a decrease of 5.3% compared to the comparable prior year period.

Outlook for FY 2018

The management concluded, "Based on our backlog currently on-hand and sales pipeline envisioned so far, we set our guidance for fiscal year 2018 with revenue in the range of $500 million to $530 million and non-GAAP net income in the range of $100 million to $110 million."

BEIJING, Sept. 26, 2017 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the Board of Directors of Hollysys has declared an annual cash dividend of $0.12 per ordinary share for 2017. The dividend will be payable on or about November 6, 2017 to shareholders of record at the close of business on October 16, 2017.

The declaration of future cash dividends, pursuant to the Company's dividend policy, is subject to final discretion of the Board of Directors based on a number of factors, including but not limited to, the Company's financial performance, its available cash resources, capital requirements and its investment opportunities.  Accordingly, there can be no assurance that dividends in the future will be equal or similar in amount to the amounts described in this press release or that the Board of Directors will not decide to suspend or discontinue, altogether, the payment of cash dividends in the future.

Hollysys' management said: "We are pleased to return value to shareholders through paying regular cash dividend. We greatly appreciate the support of Hollysys' shareholders and are very glad to be able to reward their support with paying them the cash dividend, which we believe is a prudent use of cash. In future, our Board of Directors will continue to evaluate Hollysys' ongoing financial and operational performance in determining the amount and timing of future dividends to ensure they are strategically aligned to enhance shareholder value."

Second Quarter 2016 Financial Results

• Total revenues were $202.7 million, a decrease of 27.1% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.56, a decrease of 47.2% compared to the comparable prior year period.

Outlook for FY 2017

The management concluded, "Consideration on the negative impact from delaying ATP contract, we would like to adjust the guidance for fiscal year 2017 with revenue in the range of $480 million to $520 million and non-GAAP net income in the range of $90 million to $100 million."

BEIJING, Dec. 2, 2016 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the wholly owned subsidiary Concord Corporation Pte. Ltd. ("Concord") signed a significant contract with Mitsubishi Heavy Industries Ltd. ("MHI") to supply, installation of HVAC and Electrical installation services for Rolling Stock & System of Macau LRT phase 1 project. The contract is approximately valued at MOP 137 million, or USD $17.17million. The project is planned to be finished in May 2018.

Hollysys' management commented: "We are glad Concord has successfully embarked on the Macau LRT phase 1 project. This is a significant milestone for the company to penetrate into Macau market particularly on transportation segment. Hollysys will continue to accumulate brand name throughout enormous realms, expand more markets and create value for shareholders"

BEIJING, Dec. 1, 2016 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed two contracts to provide the ground-based high-speed rail signaling system and equipment to Harbin-Jiamusi high-speed rail line("Hajia Line"), valued at RMB 77.70 million or approximately USD $11.23 million, and Jiujingqu high-speed rail line ("Jiujingqu Line"), valued at RMB 32.20 million or approximately USD $4,65 million. Total value is RMB 109.9 million or approximately USD $15.88 million.

For these two projects, Hollysys will supply the ground-based high-speed rail signaling system and equipment include Train Control Centers (TCC), Line-side Electronic Units (LEU) and other auxiliary equipment, which will work with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Hollysys' management commented: "We are pleased to win the contracts to supply ground-based signaling equipment for Hajia and Jiujingqu Lines. The achievements enhance our opportunities to win more railway line contracts. In the future, Hollysys will continue to make more contribution to China's railway construction, and create value for our shareholders."

BEIJING, Sept. 26, 2016 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the Board of Directors of Hollysys has declared a regular annual dividend of $0.20 per ordinary share for 2016. The dividend is payable on or about November 11, 2016 to shareholders of record at the close of business on October 26, 2016.

The Board of Directors of Hollysys has full discretion to decide whether to pay a cash dividend and the amount of cash dividend based on the Company's business, financial condition, results of operations, capital requirements, investment opportunities and other factors.

Hollysys' management said: "We are pleased with Hollysys' business development over the past few years. Our strong financial position allows us to return value to shareholders through paying regular cash dividend. We greatly appreciate the support of Hollysys' shareholders and are very glad to be able to reward their support with paying them the cash dividend, which we believe is a prudent use of cash. In future, our Board of Directors will continue to evaluate Hollysys' ongoing financial and operational performance in determining the amount and timing of future dividends to ensure they are strategically aligned to enhance shareholder value."

 BEIJING, Sept. 1, 2016 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has signed a contract to provide its proprietary Distributed Control System ("DCS") for 2x1000MW ultra-supercritical coal-fire power generating units to Fujian Luoyuanwan Power Plant. The units are expected to go into operation in Oct. 2017.

Hollysys' management commented: "We feel honored and pleasant of winning the contract, which reflects the customer's recognition of our leading technology, superior solution and high quality product and service. This is another GW level ultra-supercritical power plant DCS contract win by Hollysys, which strengthened our top place in power industry market share. Going forward, we will continue to penetrate the high-end market of power industry and other industries, strengthen customer service, improve the ability of turnkey solution customization, promote our long term DCS business growth, and create value for our customers and shareholders."

Fourth Quarter 2016 Financial Results

• Comparing to the fourth quarter of the prior fiscal year, the total revenues for the three months ended June 30, 2016 increased from $142.2 million to $147.7 million, representing an increase of 3.9%.
• The non-GAAP net income attributable to Hollysys, which excludes non-cash share-based compensation expenses, amortization of acquired intangibles, acquisition-related consideration fair value adjustments and convertible bond related fair value adjustments was $34.3 million or $0.57 per diluted share based on 60.7 million shares outstanding for the three months ended June 30, 2016. This represents a 48.8% increase over the $23.0 million or $0.38 per share based on 60.6 million shares outstanding reported in the comparable prior year period.

In fiscal year 2016, we kept a steady revenue growth and outperformed the challenging earnings guidance that announced previously, as well as cash flow, despite a difficulty in macro economy. When we delighted the achievements, we calmly evaluated the future opportunities and challenges, and also carefully planned for the future growth. Here we would like to discuss the achievements in the past fiscal year and strategies in future:

In industrial automation, the soft performance was mainly because of the influence of general economic environment. During the past fiscal year, China continued adjusting its industry structure and reducing the capacity in some industries such as petrochemical, metallurgy and building materials. However, Hollysys took several strategies to mitigate the impact of market headwinds. We gained more market share from rising industries to make up the loss from decreasing industries. We were doing well in power and chemical which took up the largest portion of our revenue in industrial automation; we further penetrated into high-end market. For instance, we won several bids to provide DCS for supercritical coal fire generating units, such as Funeng Luoyuanwan 2X1052MW, Jiujiang Shenhua 2X1052MW, Guohua Ningdong 2X660MW and Xinjiang TBEA 2X660MW power units. In nuclear sector, we supplied DCS for Hongyanhe 5# and 6# units. In addition, after-sale revenue was still reinforced for fiscal year 2016. With our special team kept reviewing existing customers, the demand of upgrade and maintenance continued growing. Besides, Company has actively expanded in abroad. We signed some contracts which delivered our own proprietary products in overseas market. In India, for example, Lanco Solar Power Polycrystalline Silicon Project will be implemented our DCS and SIS. Indonesia Qingshan 2X350MW Coal-fire Power Units will use our DCS and DEH. We will continue to win more customers and enlarge overseas business scale to support long-term growth of IA. In factory automation sector of IA, we are changing the strategy from providing single products to providing customized turnkey solutions, like what we are doing in the process control to help the customers solve their problems and satisfy their needs. We expect this sector has a good performance in the near future.

The performance of railway transportation was prominent. In high-speed rail sector, we won some contracts to provide the Train Control Centers ("TCC") and other related ground based products, such as Chongqing to Wanzhou Line and Xi'an to Chengdu Line; we also won several contracts in Automatic Train Protection ("ATP"). In the future, according to the new five year plan and even longer, the investment scale of central government in high speed rail will be still sizable. At the same time, track circuit has finished the second test in June 2016. This new product could make revenue contribution in upcoming years.

Another strong driver of railway transportation sector for this fiscal year was subway business. We signed the contracts to provide SCADA system for Qingdao Line R3, Kunming Line 3, Chengdu Line 10, Lanzhou Line 1, Wuhan Line 8, etc. We will continue working closely with local subway authorities to expand our SCADA business for better marketing our subway signaling control system.

In the mechanical and electrical solution segment, although Concord and Bond are facing some difficulties like projects delayed and the depreciation of local currency, they are still working hard to expand their businesses. Concord, for example, signed a very large contract to provide electrical installation services for Doha Metro Phase 1. As one of the strategies to expand the overseas market, we will ensure a healthy development of Concord and Bond and take use of the advantages of these two companies such as good customer relations and sales channels to ink more international opportunities.

Outlook for FY 2017

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we set our guidance for fiscal year 2017 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $130 million to $140 million."

BEIJING, July 22, 2016 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won the bidding to supply its proprietary supervisory control and data acquisition system (SCADA) to Qingdao Subway Line R3, which is valued at approximately RMB 111.80 million or USD $16.73 million.

Qingdao Subway Line R3 is the first line that Hollysys will construct in Qingdao, with total 23 stations, and trial operation will be in March 2018. Company will provide SCADA system based on its proprietary MACS-SCADA software platform, including software platform, system design, application development, hardware integration, installation, testing, maintenance and services. Hollysys will provide total solution based on our previous successful experience in Beijing, Guangzhou, Shenzhen subway lines to ensure local customer's needs and design requirements, as well as technology application are satisfied overall.

Hollysys' management commented, "We are very pleased to win the bidding to supply our proprietary SCADA system for Qingdao Subway Line R3. As the construction of Chinese subway accelerates, Hollysys will continue to leverage on its solid and successful track records to gain more share in this booming market, further validate our well-established brand name and create value for our shareholders."

BEIJING, July 14, 2016 /PRNewswire/ - Hollysys Automation Technologies, Ltd. (HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that the wholly owned subsidiary Concord Corporation Pte. Ltd. ("Concord") signed a significant contract with Mitsubishi Heavy Industries Ltd. ("MHI") to provide the engineering, supply, installation, testing and commissioning for part of Power Distribution System Package ("PDS") for Doha Metro Phase 1. The contract is approximately valued at QAR 227 million, or USD $62.3 million.

The entire metro project is planned to construct in two phases. The first phase, which includes the Red, Gold, Blue and Green lines that Concord is undertaking works involve for Gold, Blue and Green Lines. The first phase of the project is scheduled to complete for operation in 2019, with 37 stations and 75 kilometers. The PDS construction phase will begin in October 2016 and was scheduled to commence the system trial test at the fourth quarter of 2018.

Hollysys' management commented: "We are glad Concord won this contract. Thanks to its proven track records and extensive working business relationship with MHI which secures the opportunity in participating the construction of the Qatar Metro project. Winning this contract has set an important milestone for the company's future expansion plan in the Middle East market. Hollysys will continue to accumulate brand name globally, expand overseas market and create value for shareholders"

Third Quarter 2016 Financial Results

• Total revenues were $118.8 million, an increase of 0.5% compared to the comparable prior year period.
• Non-GAAP net income attributable to Hollysys was $23.1 million, a decrease of 21.7% compared to the comparable prior year period.

"For industrial automation business, we have insisted in executing our strategy to review the potential needs of the market in upgrading and reforming projects to mitigate the revenue which is continuously declining from new constructions in the current situation. Industries like petro-chemical, metallurgy and building materials still perform weak. However, as supplement, power industry is maintaining stable, we have signed several new DCS contracts in coal fire power, especially in high levels, the supercritical coal fire generating units, such as Jiujiang Shenhua 2X1052MW, Guohua Ningdong 2X660MW and Xinjiang TBEA 2X660MW power units. Nuclear side, we are providing DCS for Hongyanhe #5 and #6 units. In factory automation, we will continue to expand our sales force and allocate more resources to this area, and to make an effort raise our uniquely customized turnkey solutions. As mentioned above, even though industrial automation revenue is declining, we will always try our best to minimize the impact, including adjusting internally to better cope with external environment and to keep sustainable long-term healthy development.

In high-speed railway, as China is continuously investing a certain scale on supporting high-speed railway sector for the next five years, we are still benefit from the policy of 13th five-year-plan. As new products and technologies contribute in the next, we have confident that the high-speed railway's performance will be remaining stable.

For subway business, we won the new biddings for Chengdu Line 10 and Wuhan Subway Line 8 SCADA contracts. Meanwhile, the SCADA for Beijing Subway Line 14 Middle Section and Beijing Changping Subway Phrase II are both in operating stage, we gained consistent favorable reputation by the customers. This is encouraging us for seeking opportunities to work with more local transportation bureaus from the first tiers cities down. We will continue to deliver quality works and work closely with subway authorities in the future to build up our SCADA and subway signaling businesses.

In the mechanical and electrical solution segment, Concord and Bond have mainly focused in further development of Southeast Asia and Middle East markets. Even they are facing difficulties such as worsen market competitive environment, the lack of new-built projects and projects delay, rising cost and seasonal lumpiness, they are persevering in hard working. For this quarter revenue and backlog are both increased compared to same quarter last year. For long-term, we think the market still have much potential demand, and we will strengthen internal control and adjustment to keep M&E development in the future.

Lastly, for extending international business, we are in the process of setting up local service centers in abroad. In India, we won the bidding to provide DCS and SIS to Lanco Solar Power Polycrystalline Silicon Project. In Southeast Asia region, we won the bidding to provide DCS and DEH for Indonesia Qingshan 2X350MW Coal-fire Power Units. Through accumulating track record in the targeting area, we are enhancing our brand name recognition overseas. With our proprietary technologies and products, well industry expertise and customized solution, we will continue to create value for our shareholders."

Outlook for FY 2016

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2016 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $110 million to $120 million."

Second Quarter 2016 Financial Results

• Non-GAAP diluted EPS were at $0.61, an increase of 52.5% compared to the comparable prior year period.
• GAAP diluted EPS was 0.55 vs last years 0.32

"During this quarter, industrial automation business has being affected by weak external environment, with particular impacts on process control sector that we have not seen the recovery sign from the market. However, despite of challenging conditions, our strategy of developing after sales and services is proven successful which continuously taking larger percentage of our revenue. Besides, giving the new construction projects in the near future would be lack of sustainable, we have already focused on reconstruction or upgrading opportunities as supplement through sign maintenance and service contracts to lock potential customers, helping them to improve efficiency and saving the costs. Breaking down in industries, power is maintaining stable, we have taken several numbers of high level generator units, and signed large contract such as Jiujiang Shenhua 2X1052MW power units which are the highest level units in coal-fire power industry. While petro-chemical is still weak, the same as metallurgy and building materials. Overall speaking, we have to say that external environment brings large impact to our industrial automation business, but we will adjust ourselves through better internal management and control such as to insist keeping gross margin for long-term health development within industrial automation to better cope with this situation and try our best to gradually recover the business.

Outlook for FY 2016

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2016 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $110 million to $120 million."

BEIJING, Jan. 22, 2016 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has signed a contract to provide its proprietary Distributed Control System ("DCS") for 2x1052MW ultra-supercritical coal-fire power generating units to Shenhua Jiujiang Power Plant. The units are expected to go into operation at beginning of the year 2017.

The 2x1052MW ultra-supercritical coal-fire power generating units are the highest level of generating units in coal-fire power industry. In this project, Hollysys' DCS will control around 42,000 points, combined with our newest MACS K series products.

Hollysys' management commented: "We feel honored and pleasant of this contract win, which reflects the customer's recognition of our leading technology, superior solution, and high quality product and service. This is another GW level ultra-supercritical power plant DCS contract win by Hollysys, which strengthened our top place in power industry market share. Going forward, we will continue to penetrate the high-end market of power industry and other industries, strengthen customer service, improve turnkey solution customization ability, promote our long term DCS business growth, and create value for our customers and shareholders."

BEIJING, December 14, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed significant contracts to provide Automatic Train Protection (ATP) equipment and system for 70 sets of high-speed trains in 200-250km/h and 109 sets of high-speed trains in 300-350km/h respectively, total valued at approximately RMB 483.8 million or USD $75.5 million. The delivery of the products is expected to be finished by June 2016.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Hollysys' management commented: "We feel excited about the significant high-speed rail contract win, which demonstrates our solid technology capability and key market position. Besides that, for 300km/h-350km/h speed segment, this is our first time to provide ATP equipment and system for B type and D types of high-speed trains unlike before we only provided for A type of high-speed trains, which means that our products now fit the requirements for more types of high-speed trains. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management and high-quality products and services, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

First Quarter 2016 Financial Results

Total revenues were $125.1 million, a decrease of 11.1% compared to the comparable prior year.
Non-GAAP diluted EPS were at $0.45, a decrease of 2.2% compared to the comparable prior year period.

"In industrial automation business, during this quarter, we continuously insisted in executing our strategies to maintain the gross margin by penetrating the high-end industrial automation market and providing more highly customized solutions such as power, chemical, food & beverage, pharmaceutical and environmental protection related industries, while offering diversified value software packages to the end users for saving the cost and improving their efficiency. Additionally, we were focusing on reducing waste emission and environment protection area, building a strong after-sale department and set long-term goals on improving after-sale services while control the contracts qualities internally which are all contribute to keep our profits running in relatively healthy growth cycle. Even though in the short term we are under pressure giving the current weak external environment, we will still try our best to gradually recover and perform better in future.

Going forward, we will continue to expand our sales force and allocate more resources to factory automation, penetrate further into high-end market while increasing market share in pharmaceutical industry, expand our products supply such as software and turnkey solution, leveraging our advanced technologies, experienced professionals, profound industry expertise, and customization & innovation capability.

In rail transportation, we signed contract to provide the ground-based high-speed rail signaling system and equipment to Chongqing � Wanzhou high-speed rail line; we also won the bidding to provide the ground-based high-speed rail signaling system and equipment to Xi'an � Chengdu high speed rail line (Xi'an - Jiangyou section Sichuan Area). We are quite confident of the steady rail revenue and backlog performance. As China is continuously investing large scale on building railway for the next five years, we will still benefit from the policy of 13^th five-year-plan. Furthermore, we also worked to expand our rail products such as track circuit and interlocking system. We have finished one year testing of track circuit and got the official permit from authority to enter track circuit market which is a another sizable market, with potential revenue contribution from track circuit in the coming years.

For subway business, we recently won the bidding to provide supervisory control and data acquisition system (SCADA) to Kunming Subway Line 3 which shows our next step of penetration into second tier cities. We are also following both domestic and overseas opportunities in both SCADA and subway signaling projects. We will continue to deliver quality works and work closely with subway authorities in the future to promote our SCADA system and future subway signaling technologies both in China and abroad.

With China's tremendous rail and subway construction nationwide as well as "one belt one road" policy, there is going to be an exciting prospect for Hollysys both domestically and abroad. As a well-recognized rail signaling system provider, we are confident that with our strong R&D capability, leading technologies, solid execution and reliable products, Hollysys will continue to penetrate into China and the world's vast rail and subway market and achieve significant results.

In the mechanical and electrical solution segment, revenue declined for this quarter due to the projects delayed in particular area and with impact on seasonal lumpiness. However, we are still tracing some large new orders and hope this business sector could be performance better. In the long run, we achieved solid local market position, promoting directly sales with more offices and service centers expanding overseas and doing more EPC projects. We are also setting up joint venture companies to develop our business, as well as cooperate with large enterprises, plus abundant customer resources and strong execution in Southeast Asia, Middle East and expanding into India and other regions of the world. For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. With our proprietary technologies and products, industry expertise and strong competitive advantages, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields, and to create value for our shareholders."

Outlook for FY 2016

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2016 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $110 million to $120 million."

BEIJING, November 10, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won the bidding to supply its proprietary supervisory control and data acquisition system (SCADA) to Kunming Subway Line 3, valued at approximately RMB 169.89 million or USD $26.75 million.

Hollysys will provide SCADA system based on its proprietary MACS-SCADA software platform, including software platform, system design, application development, hardware integration, installation, testing, maintenance and services. Hollysys will also integrate BAS system and Power SCADA system, and apply total solution based on our previous successful experience in Beijing, Guangzhou, Shenzhen subway lines to ensure local customers' needs and design requirements as well as technology application are satisfied overall.

Kunming Subway Line 3 is the first line Hollysys constructed in Kunming with total length 24 km and trial operation scheduled at the end of year 2016. With bidding win of this line, Hollysys' SCADA business is breaking through Southwest region of China and lays the foundation for further penetration into this region.

Hollysys' management commented, "We are very pleased to win the bidding for the first line Hollysys constructed in Kunming to supply our proprietary SCADA systems for Kunming Subway Line 3. As China's subway build-up accelerates nationwide, Hollysys will continue to leverage on its solid and successful track record to gain its fair share in this booming market, further validates our well-established brand name recognition in China, and create value for our shareholders."

BEIJING, November 10, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the ground-based high-speed rail signaling system and equipment to Chongqing-Wanzhou high-speed rail line("Yuwan Line"), valued at RMB 40.60 million or approximately USD $6.40 million; it also won the bidding to provide the ground-based high-speed rail signaling system and equipment to Xi'an-Chengdu high-speed rail line ("Xicheng Line") Xi'an - Jiangyou Section Sichuan Area, valued at RMB 21.93 million or approximately USD $3.45 million. Total value is RMB 62.53 million or approximately USD $9.85 million

For these two projects, Hollysys will supply the ground-based high-speed rail signaling system and equipment include Train Control Centers (TCC), Line-side Electronic Units (LEU) and other auxiliary equipment, which will work with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Yuwan Line starts from Chongqing North Station, ends in Wanzhou North Station, with designed running speed of 200km/h to 250km/h and total length of 247 km. Xicheng Line Xi'an - Jiangyou Section Sichuan Area, with designed running speed of 200km/h to 250 km/h and total length of 166.44 km. The total length of Xi'an - Jiangyou Section is round 507 km, and this line is expected to be operated by the end of year 2017.

Hollysys' management commented: "We are pleased of the contract win to supply ground-based signaling equipment to Yuwan Line, and bidding win to supply ground-based signaling equipment to Xicheng Line which enhances our opportunities to win more railway line contracts and helps Hollysys to further penetrate southwest railway market. In the future, Hollysys will continue to work closely with China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

Fourth Quarter Financial Results

• Non-GAAP net income attributable to Hollysys was $23.0 million, a decrease of 9.8% compared to the comparable prior year period.
• Non-GAAP diluted EPS were at $0.38, a decrease of 11.6% compared to the comparable prior year period.

In fiscal year 2015, we made solid achievements and delivered robust growth in several areas in terms of financial performance and business operation, and achieved higher than our expected net income guidance. When we enjoy the exciting moment, we also calmly evaluate the future opportunities and challenges and carefully plan for the future growth. Here we would like to discuss the achievements in the past fiscal year and strategies in the future in the respective segments:

In the industrial automation sector, during the past fiscal year, China was continuously adjusting its industry structure and reducing the capacity in some industries such as metallurgy, building material, paper mill and coal fire power, but we gained more market share from rising industries to make up the loss from decreasing industries and through winning more high-end projects such as Guangdong Yuedian Bohe Thermal Power Plant, Guohua Shouguang Coal Fire Power Plant, Datang Sanmenxia Coal Fire Generating Units and etc., to remain in good shape for our total industrial automation sector. In order to better cope with weak general environment, firstly, we have been continuously improving our industry solution capability and competition capability to strengthen industry marketing and influence on the base of regional network construction few years ago, and focus more on larger projects with more total solution supply. Secondly, we increased the higher gross margin products providing including Distributed Control System ("DCS"), Safety Instrumentation System ("SIS") and advanced control software, to improve operation quality and profitability. Thirdly, we continued to provide quality service and maintenance to our customers, to set up long term working relationship with old customers and provide more value adding technologies to improve their operation. Fourthly, capture the new growth opportunities of energy conservation and emission reduction, and pursue the new business opportunities driven by intelligent and automated production and working.

The factory automation which is categorized in the industrial automation is relatively a new business but with strong potential, in this area we provide proprietary Programmable Logic Controller ("PLC") and develop our proprietary solution and equipment, to the industries such as coal mining, waste water treatment, and the Traditional Chinese Medicine ("TCM") which performed well in the past fiscal year and we expect solid growth in the coming year. We have built up the advanced technology platform, mature products and successful application track record in the above areas, and we'd like to seek more opportunities to replace labor and improve production efficiency for our customers.

Besides, we are expecting another strong growth driver of industrial automation from overseas market, we have established subsidiary companies and offices in India, Malaysia, and Singapore few years ago to provide our industrial automation products. We are currently enhancing the localization such as recruiting local talents and establishing local partnership, we believe that we will have the same strong advantages as in China like the quality products, better service and better value for money which will enable us to win more customers and enlarge overseas business scale.

In high-speed rail sector, we were continuously making remarkable achievements in fiscal year 2015. In this year, we signed several sizable ground-based high-speed rail signaling system contracts to provide the Train Control Centers ("TCC") and other related products consecutively, including the Foshan-Zhaoqing intercity high-speed rail line which is the first TCC contract with Automatic Train Operation technology applied, Jinhua-Wenzhou high speed rail line, and Xi'an-Chengdu high-speed rail line Xi'an-Jiangyou section; and two batches of significant Automatic Train Protection ("ATP") equipment providing contracts value at RMB 580 Million and RMB 118.7 Million respectively. The strong backlog and booming order pipeline make certain for another strong year ahead. We believe with our key position in China's high-speed rail signaling system providing, superior products performance and well-reputed track record, we are well prepared to take more market share in the high-speed rail signaling in the near future. Besides that, our new product, track circuit is making significant progress, we expect to win first contract in fiscal year 2016 and becoming growth driver in the long run.

In subway sector, we signed the contract of Tianjin Subway Line 5, Shenzhen Subway Line 11 and Lanzhou Subway Line 1 to provide Supervisory Control and Data Acquisition System ("SCADA"). In the future, we will closely work with local subway authorities to explore the SCADA and subway signaling business opportunities both in China and aboard.

For overseas business, we were satisfied with Bond and Concord' capability of winning orders and execution, and we are expecting strong business growth from the overseas sector. In the next phrase, we will continuously accelerate the overseas business expansion, ensure the healthy development of their business, increase our proprietary products and systems providing leveraging their market resources, and improve our overseas business gross margin.

In addition, analysts and investors are invited to attend our Annual Investor Day around mid-October, which will be filled with showcasing our whole executive team, insightful presentations from various corporate executives and facility tour, to further enhance our transparency, corporate investor relations and communication. Our shareholders who would like to participate in this annual event shall contact their brokerage firms or contact us directly to arrange the reservation; we are looking forward to meeting with you in October at our premises.

Outlook for FY 2016

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2016 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $110 million to $120 million."

BEIJING, July 28, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a significant contract to provide Automatic Train Protection (ATP) equipment and system for high-speed trains in 200-250km/h and 300-350km/h respectively, valued at approximately RMB 118.7 million or USD $19.4 million. The delivery of the products is expected to be finished by October 2015.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Hollysys' management commented: "We feel excited about the significant high-speed rail contract win, which demonstrates our solid technology capability and key market position. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management and high-quality products and services, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, July 7, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won the contract to supply its proprietary supervisory control and data acquisition system (SCADA) to Lanzhou Subway Line 1, valued at approximately USD $12.26 million or RMB 75.0 million.

Lanzhou Subway Line 1 is the first line constructed in Lanzhou, including 1 control center with 18 stations and 25.9 km in total length. The trial operation is scheduled in January 2017.

Hollysys is contracted to provide SCADA system based on its proprietary MACS-SCADA software platform, including software platform, system design, application development, hardware integration, installation, testing, maintenance and services. Hollysys will also provide its proprietary PLC to its PSCADA (Power SCADA) and apply total solution based on our previous successful experience in Beijing, Guangzhou, Shenzhen subway lines to ensure local customers' needs and design requirements as well as technology application are satisfied overall.

Hollysys' management commented, "We are very pleased to win the bidding for the first line in Lanzhou as well as in Northeastern region to supply our proprietary SCADA systems for Lanzhou Subway Line 1. As China's subway build-up accelerates nationwide, Hollysys will continue to leverage on its solid and successful track record to gain its fair share in this booming market, further validates our well-established brand name recognition in China, and create value for our shareholders."

BEIJING, June 25, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has won the contract to supply its proprietary supervisory control and data acquisition system (SCADA) to Shenzhen Subway Line 11, valued at approximately USD $21.26 million or RMB 130 million.

Shenzhen Subway Line 11 is an airport express line, connecting Futian, Nanshan, and Baoan Districts, with 18 stations and 51.9 km in total length. The trial operation is scheduled in June 2016.

Hollysys is contracted to provide SCADA system based on its proprietary MACS-SCADA software platform, including software platform, system design, application development, hardware integration, installation, testing, maintenance and services. Hollysys will also provide its proprietary LM PLC to its PSCADA (Power SCADA) and apply total solution based on our previous successful experience in Beijing, Guangzhou, Shenzhen subway lines to ensure local customers' needs and design requirements as well as technology application are satisfied overall.

Hollysys' management commented, "We are very pleased to win the bidding from Shenzhen Metro Group to supply our proprietary SCADA systems for Subway Line 11. As China's subway build-up accelerates nationwide, Hollysys will continue to leverage on its solid and successful track record to gain its fair share in this booming market, further validates our well-established brand name recognition in China, and create value for our shareholders."

Third Quarter  2015 Financial Results

• Total revenues were $118.2 million, an increase of 23.4% compared to the comparable prior year.
• Non-GAAP diluted EPS were at $0.50, an increase of 92.3% compared to the comparable prior year period.

The management of Hollysys, stated: "In this quarter, we achieved solid financial and operational result amid the weak general economic environment and made quite a few achievements and new contract wins, here I would like to discuss some key events during this quarter:

In industrial automation business, during this quarter, we continuously insisted in executing our strategies to penetrate the high-end industrial automation market and provide more complete solution. In March 2015, we signed a significant contract to provide our Distributed Control System ("DCS") to 2*1000 MW ultra-supercritical Thermal Power Generating Units in Datang Sanmenxia Power Plant in Henan Province; this is the fourth contract we signed in the GW level thermal power industry, which demonstrate our leading technology and firm our market position in the high-end thermal power market in China.

Besides high-end thermal power market penetration, Hollysys also focused on penetrating into other high-end industries such as chemical, medical, food and beverage and environmental protection related industries, and providing total solution such as software solution, safety protection and critical hardware solution. We were also focusing on building strong after-sale department and setting long-term goals on improving after-sale services. Our total solution in reducing waste emission and environment protection proved successful. Even though in the short term we have pressure under the current weak external environment, but with our leading technology and proprietary customized solution, we have gradually recovered and performed better than the previous quarters.

Going forward, we will continue to expand our sales force and allocate more resources to high-growth industries, penetrate further into high-end market while increasing market share in the low to mid-end market, expand our products supply such as software and safety protection solution, increase our overall market share and grow the business in the industrial automation leveraging our advanced technologies, experienced professionals, profound industry expertise, customization and innovation capability.

In rail transportation, we signed an approximately 95 million USD ATP contract in January and it partially contributed to this quarter's strong rail revenue performance. We believe there are more contracts to be expected in the next few months. We are quite confident of the whole fiscal year's strong rail revenue performance. Besides, we also won two ground-based signaling contracts which are for Jinhua-Wenzhou Line and Xi'an-Chengdu Line in the recent past few months, valued at approximately 20.1 million USD in total, which demonstrate our strong orders taking momentum in high-speed rail market.

We also worked to expand our rail products supply such as track circuit and interlocking system. We have finished one year testing of track circuit and the official admission progress and got the permit to enter track circuit market which is a another sizable market. We are entering into this market and expecting to gain our first track circuit contract in calendar year 2015.

For subway business, we are following both domestic and overseas opportunities in both subway SCADA and subway signaling projects, we will continue to deliver quality works and work closely with subway authorities in the future to promote our SCADA system and future subway signaling technologies both in China and abroad.

With China's tremendous rail and subway construction nationwide as well as "one belt one road" policy, there is going to be an exciting prospect for Hollysys both domestically and abroad. As a well-recognized rail signaling system provider, we are confident that with our strong R&D capability, leading technologies, solid execution and reliable products, Hollysys will continue to penetrate into China and the world's vast rail and subway market and achieve significant results.

In the mechanical and electrical solution segment, it delivered solid growth during this quarter given solid local market position, abundant customer resources and strong execution in Southeast Asia and in Middle East. For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. With our proprietary technology and products, industry expertise and strong competitive advantages, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields, and create value for our shareholders."

BEIJING, April 21, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the ground-based high-speed rail signaling system and equipment to Xi'an - Chengduhigh-speed rail line ("Xi-Cheng Line") Xi'an - Jiangyou Section, valued at RMB 67.06 million or approximately USD $10.8 million with total construction length of 507 km. This Line is expected to be operated by the end of year 2017.

According to the contract, Hollysys will supply the ground-based high-speed rail signaling system and equipment include Train Control Centers (TCC), Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and other auxiliary equipment, which will work with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Xi'an-Chengdu high-speed rail line is 660 km in length, Xi'an - Jiangyou Section starts from Xi'an to Ningqiang South Station with designed total operation length of 507 kilometers and includes 10 stations along the route. Xi-Cheng Line is an important connection line between Xi'an and Chengdu, which improves the local rail network and brings convenience to transport to North China region and Southwest region of China through the connection of this line with other artery lines.

Hollysys' management commented: "We are pleased of this contract win to supply the ground-based signaling equipment to Xi-Cheng Line, which enhances our opportunities to win more railway line contracts and helps Hollysys to further penetrate southwest railway market. In the future, Hollysys will continue to work closely with China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, March 24, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has won a contract to provide its proprietary Distributed Control System ("DCS") for 21000MW ultra-supercritical thermal power generating units to Datang Sanmenxia Power Plant. The units are expected to be placed into operation around September 2016.

The 21000MW ultra-supercritical thermal power generating units of Datang Sanmenxia Power Plant is a key project in Henan Province, which is funded and constructed by China Datang Corporation. In this project, Hollysys' DCS will control more than 25,000 points and the ProfiBus will control over 4,500 distributed devices for the two GW level generating units. In addition, the HAMS (HolliAS Asset Management System) perform as a central platform which is easy to integrate with other systems such as SIS, ERP, and MES.

BEIJING, Feb. 12, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the ground-based high-speed rail signaling system and equipment to Jinhua - Wenzhou high-speed rail line ("Jinwen Line"), valued at RMB 58.46 million or approximately USD $9.35 million with a length of 188.8 km. Jinwen Line is expected to operate by the end of year 2015.

According to the contract, Hollysys will supply the ground-based high-speed rail signaling system and equipment, including Train Control Centers (TCC), Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and other auxiliary equipment, which will work with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Jinwen Line starts from Dongxiao Station (included) to Wenzhou South Station (included) with a designed total length of 188.8 kilometers, including 9 stations along the route. Jinwen Line is an important line connecting Shanghai-Kunming high-speed railway with the eastern coastal railway in Zhejiang Province, which will improve the local rail network and make it more convenient to travel to the northeast and southwest provinces.

Hollysys' management commented: "We are pleased to win this contract to supply the ground-based signaling equipment to Jinwen Line, which enhances our opportunities to win more such railway line contracts and helps Hollysys to further penetrate southeast railway market. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, to leverage its strong R&D capability, effective management, and high-quality products and service, to make more contributions to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and to create value for our shareholders."

Second Quarter 2015 Financial Results

• Total revenues were $130.3 million, a decrease of 15.1% compared to the comparable prior year period and a decrease of 7.4% compared to last quarter.
• Non-GAAP diluted EPS were at $0.40, a decrease of 11.1% and 14.9% compared to the comparable prior year period and last quarter respectively.

The management of Hollysys, stated: "In the second quarter and last month, we achieved solid financial and operational result amid the weak general economic environment and made quite a few achievements and new contract wins, here I would like to discuss some key events during this quarter:

In industrial automation business, during this quarter, we continuously insisted in executing our strategies to vertically penetrate the high-end industrial automation market and provide more complete solutions horizontally. In the end of January 2015, we signed a significant contract to provide our Distributed Control System ("DCS") to 2*1000 MW Supercritical Coal Fire Power Generating Units for Guohua Shouguang Power Plant in Shandong Province; there are more than 40,000 points to be controlled in this project. Hollysys won this project from fierce competition with multinational and local competitors, which demonstrate our technology and firm our market position in the high-end coal fire power market in China.

Besides high-end market penetration, Hollysys also focused on reallocating our resources and putting more efforts in comparably high growth industries such as medical industry, food and beverage industry and environmental protection related industries, and reducing the resources on no growth or even declining industries such as cement manufacturing, metallurgy and etc. We were also focusing on building strong after-sale department and set long-term goals on improving after-sale services. Our solution in reducing waste emission and environment protection proved successful.

Externally, with China becoming an aging society and labor shortage tending to be a bigger problem, China is putting more efforts in automation to replace labor and improve efficiency to reduce emission and protect environment. We believe we will financially benefit more in the long run. Even though in the short term we got pressure under the current weak external environment, we are confident of the long term industrial automation growth.

Going forward, we will continue to expand our sales force and allocate more resources to high-growth industries, penetrate further into high-end market while increasing market share in the low to mid-end market, expand our products supply such as software and safety protection solution, increase our overall market share and grow the business in the industrial automation leveraging our advanced technologies, experienced professionals, profound industry expertise, customization and innovation capability.

In rail transportation, this quarter's rail revenue performance is because of its revenue's quarterly volatility due to the sizable contract signing process and afterwards revenue recognition. We are still very confident of the whole fiscal year's strong rail revenue performance. And excitingly, we achieved a few sizable contract wins in the recent past few months which will contribute to rail revenue afterwards.

In December 2014, we won our first contract to provide the CTCS-2 Train Control Centers with Automatic Train Operation ("ATO") technology to Foshan - Zhaoqing intercity high-speed railway line, one of the first two intercity high-speed railway lines with ATO technology currently open for bidding in China. Even though the contract size is not large, which is RMB 18.8 million or USD 3.1 million for this line of 79.7 km, this contract win demonstrates our leading technology, opens the gate to gain more ATO technology based intercity high-speed rail signaling system contracts in the future, lays the foundation for winning ATP with ATO function contracts of following projects, accumulates experience of C2+ATO type lines, and helps the company to further penetrate China's future intercity high-speed rail market;

Besides, at the end of January 2015, we signed a very sizable contract to provide ATP equipment and system for two batches of high-speed trains in 200km/h and 300km/h running speed valued at RMB 580.0 million or USD 95.0 million, which demonstrates our solid technology capability and solid market position. The products delivery is expected to be finished around June 2015.

What's more, we also worked to expand our rail products supply such as track circuit. We have finished one year testing of this product and the official admission progress and got the permit to enter track circuit market. We are expecting to gain our first track circuit contract in calendar year 2015.

In addition, in December quarter 2014 we finished quite a few important high-speed rail projects and assisted the successful operation of Lanzhou-Xinjiang High-speed Rail Line, Qingdao-Rongcheng High-speed Rail Line, Guiyang-Guangzhou High-speed Rail Line Guiyang-Congjiang Section. We felt honored and excited in contributing for China's national rail construction and assisting in these artery lines' successful operation.

For subway business, we are following both domestic and overseas opportunities in both subway SCADA and subway signaling projects, we will continue to deliver quality works and work closely with subway authorities in the future to promote our SCADA system and future subway signaling technologies both in China and abroad.

With China's tremendous rail and subway construction nationwide, there is going to be an exciting prospect for Hollysys. As a well-recognized rail signaling system provider, we are confident that with our strong R&D capability, solid execution and reliable products, Hollysys will continue to penetrate China's vast rail and subway construction market and achieve significant results.

In the mechanical and electrical solution segment, Bond and Concord delivered solid growth during this quarter given their solid local market position, abundant customer resources and strong execution in Southeast Asia. For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. We have also established offices in Dubai and India to further expand our overseas business. With our proprietary technology and products, industry expertise and strong competitive advantages, together with our expanded local channels through Bond and Concord, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields, and create value for our shareholders."

Outlook for FY 2015

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we reiterate our guidance for fiscal year 2015 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $94 million to $98 million."

BEIJING, February 9, 2015 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that its Board of Directors has declared a one-time cash dividend of US$0.40 per share to the holders of the Company's ordinary shares. Shareholders of record as of the close of business on February 23, 2015 will be eligible to receive the dividend. The dividend is expected to be paid on or around March 16, 2015.

Hollysys' management commented: "We are pleased with Hollysys' business development over the past few years. Our strong financial position allows us to return value to shareholders through this one-time cash dividend. We greatly appreciate the support of Hollysys' shareholders and are very glad to be able to reward their support with the payout of this dividend, which we believe is a prudent use of cash at this time. In future, Hollysys will continue to grow our businesses across various business sectors both in China and abroad and provide excellent value to our shareholders."

BEIJING, February 9, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has won the contract to provide its proprietary Distributed Control System ("DCS") for 21000MW ultra-supercritical coal fire power generating units to Guohua Shouguang Power Plant. The units are expected to be operated in June 2016 and in November 2016 respectively.

The 21000MW ultra-supercritical coal fire power generating units of Guohua Shouguang Power Plant is a key project in Shandong Province, which is funded and constructed by Shenhua Guohua Power. The total DCS control points are over 40,000, which is the largest scale adopting one brand DCS in doing the automation and control for 1000MW power generating units today.

Hollysys won this project from the fierce competition with globally well-known automation companies and local company. And Hollysys was finally awarded this contract because of its leading and well recognized technology, solution, product and service. This is another significant contract win to strengthen Hollysys' high-end power industry position.

Hollysys' management commented: "We are very excited of the contract win to apply our proprietary DCS to the largest scale of power generating units in China, which evidenced our leading technology and capability again. We will continue to organize our industry professional teams to further penetrate the high-end segments of the industrial automation market and intensify our sales efforts in the low to mid-end market to further enhance our overall market position, and create value for our shareholders."

BEIJING, February 2, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a significant contract to provide Automatic Train Protection (ATP) equipment and system for 40 sets of high-speed trains in 200-250km/h and 80 sets of high-speed trains in 300-350km/h respectively, valued at approximately RMB 580 million or USD $95 million. The delivery of the products is expected to be finished by June 2015. Besides this contract award, Hollysys' management also expects another supplementary ATP contract to be signed in the near term.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Hollysys' management commented, "We feel excited about the significant high-speed rail contract win, which demonstrates our solid technology capability and key market position. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, Jan. 6, 2015 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed the company's first contract to provide the CTCS-2 Train Control Centers with Automatic Train Operation technology ("C2+ATO TCC") and other auxiliary systems and equipment to Foshan�Zhaoqing inter-city high-speed rail line ("Fozhao Line"), valued at RMB18.88 million or approximately USD $3.05 million. The total length of this line is 79.72 kilometers, with designed running speed of 200km/h - 250km/h. This line is expected to begin operation in 2015.

According to the terms of the contract, Hollysys will provide C2+ATO TCC, Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and Balises to this line. C2+ATO TCC is an advanced technology compared with traditional C2-TCC, which will be mainly used in inter-city high-speed rail lines with similar function and working logic as subway running. Compared with traditional TCC, the C2+ATO TCC adds a Communication Server (CCS) to send control signals of opening or closing gates to the platform gate control system while collecting information such as platform gate, flood gate and emergency shutdown etc. and then sending the information tothe Communication Server.

ATO stands for Automatic Train Operation, which works under the protection of Automatic Train Protection (ATP) and can realizeautomatic train operation, precise shutdown of the train, platform automatic operation, train's automatic running adjustment and other functions, which ensures  efficient, comfortable, on time, precise shutdown and energy saving operation. The C2+ATO TCC works together with the on-board signaling equipment ATP with ATO function, as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Fozhao Line connects Foshan city and Zhaoqing city, which is a significant part of the high-speed rail network in the Pearl River Delta inGuangdong Province. This line is designed with 11 stations and a total length of 79.72 kilometers. Fozhao Line will start from Foshan West Station (not included), then pass by Shishan, Sanshui and Yundonghai and then reach within the boundary of Zhaoqing, pass by Dawang Development Zone and other stations, arrive at Duanzhou with 11 stations along the route.

After the operation of Fozhao Line and several other lines within the Pearl River Delta, it will release the transportation pressure of 9 cities in the Pearl River Delta and Qingyuan City within the area and create a large and transport-convenient community for those cities, optimize resource allocation and realize balanced development of the regional economy. After construction is finished, the Pearl River Delta will have an approximately 3,800 kilometer intercity railway transportation network (High-Speed Railway included), withGuangzhou, Shenzhen and Zhuhai as the main hubs, cover main cities and towns within the area and create a convenient, fast, reliable and efficient intercity railway transportation network.

Hollysys' management commented: "We are very excited about this breakthrough contract win to supply the C2+ATO ground-based signaling system and equipment to Fozhao Line, which is the first C2+ATO contract win for Hollysys, which demonstrates our leading technology, enhances our opportunity to gain more ATO technology based intercity high-speed rail signaling system contracts, lays the foundation for winning Communication Server and ATP with ATO function contracts of following projects, accumulates experience of C2+ATO type lines, and helps the company to further penetrate China's south intercity high-speed rail market. In the future, Hollysys will continue to work closely with the China Railway Corporation and national and local railway authorities to leverage our strong R&D capability, effective management and execution, and high-quality products and service, make more contributions to China's railway construction, explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

• Total revenues were $140.7 million, an increase of 24.2% compared to the comparable prior year period and a decrease of 11.4% compared to last quarter.
• Non-GAAP diluted EPS were at $0.46, an increase of 31.4% and 7.0% compared to the comparable prior year period and last quarter respectively.

"During this quarter, we continuously insisted in executing our strategies to vertically penetrate in the high-end industrial automation market and we have won several high-end projects in chemical, thermal, food beverage and new energy industries. We were also focusing on building strong after-sale department and set long-term goals on improving after-sale services. Our solution in reducing waste emission and environment protection proved successful. In recent operation, we have won a significant bidding to provide our proprietary DCS for 1GW Guangdong Yuedian Bohe thermal power plant. We also had a contract win of 2X800MW thermal power plant DCS reconstruction project for Liaoning Suizhong Power Plant, which marks our footstep on largest scale of power plant reconstruction area in China, proved that our leading technology and total solution has won the trust of our client to replace the foreign player's control technology and products. With China becoming an aging society and labor shortage tends to be a bigger problem, China is putting more efforts in automation to replace labor and improve efficiency to reduce emission and protect environment. We believe we will financially benefit more in the long run. Going forward, we will continue to expand our sales force and allocate more resources to high-growth industries, penetrate further into high-end market, increase market share in the low to mid-end market, expand our products supply such as software and safety protection solution, increase our overall market share and grow the business in the industrial automation leveraging our advanced technologies, experienced professionals, profound industry expertise, and customization and innovation capability.

"In rail transportation, during this quarter, we feel excited of the significant subway supervisory control and data acquisition system (SCADA) bidding win in Tianjin Subway Line 5, which is scheduled to be in operation by the end of 2017, leveraging our previous successful subway SCADA experience in Beijing, Guangzhou, Shenzhen subway lines. We will continue to deliver quality works and work closely with subway authorities in the future to promote our SCADA and future subway signaling technologies. Besides in the high-speed rail, we continuously make remarkable achievements and market share increase. Currently we are tightly executing quite a few railway lines including Qingdao-Rongcheng Line, Guiyang-Guangzhou Line, Shenyang-Dandong Line, and bidding for new projects. We also work to expand our rail products supply such as track circuit. We have finished one year testing of this product on line authorized by Beijing Railway Bureau, and soon we are going to finish the official admission progress. With China's tremendous rail and subway construction nationwide, there is going to be an exciting prospect for Hollysys. As a well-recognized rail signaling system provider, we are confident that with our strong R&D capability, solid execution and reliable products, Hollysys will continue to penetrate China's vast rail and subway construction market and achieve significant results.

"In the mechanical and electrical solution segment, Bond and Concord delivered solid growth during this quarter given their solid local market position, abundant customer resources and strong execution in Southeast Asia. For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. With our proprietary technology and products, industry expertise and strong competitive advantages, together with our expanded local channels through Bond and Concord, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields, and creating value for our shareholders."

BEIJING, October 20, 2014 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won the bidding from Tianjin Metro to supply the supervisory control and data acquisition system (SCADA) to Tianjin Subway Line 5, valued at approximately USD $13.88 million or RMB 85.02 million.

Tianjin Subway Line 5 is a mass transit subway line connecting Science Park in Beichen District in the north and Liqizhuang in Xiqing District in the south of Tianjin, with 30 stations and 33.6 km in total length. The construction is including three phases. The Phase 1 is scheduled to be completed by the end of 2015, the phase 2 is scheduled to be completed by September 2016, and the whole line is scheduled to be in trail operation by October 2017.

Hollysys is contracted to provide SCADA system based on its proprietary MACS-SCADA software platform, including software platform, system design, application development, hardware integration, installation, testing, maintenance and services. Hollysys will also provide its proprietary LM PLC to its PSCADA (Power SCADA) and apply total solution based on our previous successful experience in Beijing, Guangzhou, Shenzhen subway lines to ensure local customers' needs and design requirements as well as technology application are satisfied overall.

Hollysys' management commented, "We are very pleased to win the bidding from Tianjin Metro to supply our proprietary SCADA systems for Tianjin Subway Line 5. As China's subway ramp-up accelerates nationwide, Hollysys will continue to leverage on its solid and successful track record to gain its fair share in this booming market, further validates our well-established brand name recognition in China's fast-growing subway automation market, and create value for our shareholders."

BEIJING, September 29, 2014 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it successfully signed the contract to provide its proprietary Distributed Control System ("DCS") for 2800MW power generating units in Liaoning Suizhong Power Plant (Suizhong Power Plant) for its DCS reconstruction.

Suizhong Power Plant was launched into operation in 2000, and it was the largest thermal power plant in Asia at that time and was initially equipped with a foreign player's control technology. This project has complex controlling requirements with 36,000 controlling points, and it can be ranked as one of the largest and most complex DCS reconstruction project in coal fire power industry in China.

Under the competition with well-known multinational competitors, Hollysys quickly formed the total solution plan for the DCS reconstruction for Suizhong Power Plant and they were satisfied with the Company's overall performance. Hollysys won the contract through its advanced technology, industry expertise, solution capabilities and continuing effort through teamwork. This is a significant breakthrough for Hollysys in DCS reconstruction sector in the GW level power plant.

Hollysys' management commented, "We are very proud of the contract win to provide our proprietary DCS to the largest scale of power generating units DCS reconstruction project in China, which evidenced our leading technology and capability again. We will continue to restructure our marketing sales force and organize industry professional teams to further penetrate the high-end segments of the industrial automation market, and we have gradually achieved the fruitful results. Going into the future, we will continue to capture our fair share in the high-end market and intensify our sales efforts in the low to mid-end market to further enhance our market position, and create value for our shareholders."

BEIJING, September 18, 2014 /PRNewswire/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won the bidding to provide its proprietary Distributed Control System ("DCS") combined process fieldbus communication technology ("ProfiBus") for 21GW power generating units to Guangdong Yuedian Bohe Power Plant (Bohe Power Plant).

Hollysys is the only qualified local provider bidding for two GW level generating units of Bohe Power Plant to provide ProfiBus technology, competing with globally well-known automation companies. After two years of hard work to prepare for the bidding and after four days and six rounds of answering questions, Hollysys finally won the bidding. This is another significant breakthrough after winning the Hongshan Power Plant contract for Hollysys in the GW level power plant industry which is adopting ProfiBus technology together with its high-end DCS.

Hollysys' management commented: "We are very proud of the bidding win to apply our proprietary ProfiBus DCS to the largest scale of power generating units in China, which evidenced our leading technology and capability again. We will continue to restructure our marketing sales force and organize industry professional teams to further penetrate the high-end segments of the industrial automation market, and we have gradually seen the fruitful results. Going into the future, we will continue to capture our fair share in the high-end market and intensify our sales efforts in the low to mid-end market to further enhance our market position, and create value for our shareholders."

Fourth Quarter 2014 Financial Results

• Quarterly revenues of $158.9 million, representing an increase of 40.0% compared to $113.4 million year over year, and an increase of 65.7% compared to $95.8 million quarter over quarter.
• Non-GAAP diluted EPS at $0.44 reported for the quarter, as compared to $0.29 year over year, and $0.26 quarter over quarter.

In fiscal year 2014, we made solid achievements and delivered robust growth in several areas in terms of financial performance and business operation, and outperformed the challenging earnings guidance we announced previously. When we enjoy the exciting moment, we also calmly evaluate the future opportunities and challenges and carefully plan for the future growth. Here we would like to discuss the achievements in the past fiscal year and strategies in the future in the respective segments:

The industrial automation delivered solid growth during fiscal year 2014, the actual growth rate was not as fast as we previously expected, mainly because of the influence by the general economic environment. During the past fiscal year, China began to adjust its industry structure and reducing the capacity in some industries such as metallurgy, building material, paper mill and coal fire power, but we gained more market share from rising industries to make up the loss from decreasing industries, we were doing well in chemical which took up the largest portion of our revenue in industrial automation, and we were doing better in food & beverage industry and medical industry. In order to better cope with such situation, firstly, we have been continuously improving our industry solution capability and competition capability to strengthen industry marketing and influence on the base of regional network construction few years ago, and focus more on larger projects with more total solution supply. Secondly, we increased the higher gross margin products providing including Distributed Control System ("DCS"), Safety Instrumentation System ("SIS") and advanced control software, and reduced the lower gross margin instrumentation business, to improve operation quality and profitability. Thirdly, we continued to provide quality service and maintenance to our customers, to set up long term working relationship with old customers and provide more value adding technologies to improve their operation. Fourthly, capture the new growth opportunities of energy conservation and emission reduction, and pursue the new business opportunities driven by intelligent and automated production and working.

The factory automation which is categorized in the industrial automation is relatively a new business but with strong potential, in this area we provide proprietary Programmable Logic Controller ("PLC") and develop our proprietary solution and equipment, to the industries such as coal mining, waste water treatment, and Traditional Chinese Medicine ("TCM"). We have built up the advanced technology platform, mature products and successful application track record in the above areas, and we'd like to seek more opportunities to replace labor and improve production efficiency for our customers.

Besides, we are expecting another strong growth driver of industrial automation from overseas market, we have established subsidiary companies and offices in India, Malaysia, and Singapore few years ago to provide our industrial automation products. We are currently enhancing the localization such as recruiting local talents and establishing local partnership, we believe that we will have the same strong advantages as in China like the quality products, better service, better value for money which will enable us to win more customers and enlarge overseas business scale.

Nuclear power business was gradually recovering since the second half of calendar year 2013, and we successful provided and installed our proprietary HOLLiAS-N Distributed Control System ("HOLLiAS-N DCS") in Unit 1 and Unit 2 of Hongyanhe Nuclear Power Plant, Unit 1 and unit 2 of Ningde Nuclear Power Plant, and Unit 1 of Yangjiang Nuclear Power Plant and assist these units' successful commercial operation and delivered outstanding performance.

Outlook for FY 2015

The management concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we set our guidance for fiscal year 2015 with revenue in the range of $565 million to $600 million and non-GAAP net income in the range of $94 million to $98 million."

BEIJING, July 21, 2014 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the ground-based high-speed rail signaling system and equipments to Shenyang - Dandong high-speed rail line("Shendan Line"), valued at RMB50.92 million or approximately USD $8.28 million in total, with designed running speed of 250 km/h. Shendan Line is expected to be operated by August 2015

The ground-based high-speed rail signaling system and equipments include Train Control Centers (TCC), Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and other auxiliary equipments, work together with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Shendan Line connects Shenyang city and Dandong city with designed total 8 stations and a total length of 207 kilometers. Shendan Line will start from Harbin-Dalian Line ("Hada Line"), then pass by Benxi Economic Development Area, Benxi city, Fengcheng city, and then arrive in Dandong city with 8 stations along the route. After the operation of Shendan Line, it will only take approximately 1.5 hours from Shenyang to Dandong, which will effectively reduce the travel time of passengers. Through connecting with Hada Line and Dandong-Dalian Line ("Danda Line"), intercity triangle zone of mid-south rail network of Liaoning Province is formed as the main frame, improving the layout of high speed rail network as well as accelerating development of mid-south Liaoning Province urban cluster, and providing convenient travelling condition for industrial parks to collaborate within the Liaoning Coastal Economic Zone.

Hollysys' management commented: "We are pleased of this contract win to supply the ground-based signaling equipments to Shendan Line, which helps Hollysys to further penetrate China's Northeast railway market and enlarge our market share of Shenyang Railway Bureau. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, July 1, 2014 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications inChina, announced today that it signed two contracts to provide the ground-based high-speed rail signaling system and equipments to Guiyang- Guangzhou high-speed rail line ("Guiguang Line") Guizhou section and Baiyun- Longli north high-speed rail line, valued at RMB 117.12 million or approximately USD $19.03 million in total, with designed running speed of 250 km/h for both lines. These two lines are expected to be operated by the end of 2014 and mid of 2015 respectively.

The ground-based high-speed rail signaling system and equipments include Train Control Centers (TCC), Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and other auxiliary equipments, work together with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Guiguang Line connects Guiyang city and Guangzhou city with designed total 21 stations and a total length of 857 kilometers. Guiguang Line Guizhou section will start from Guiyang, then pass by Longli North, Changming and others, and then arrive in Congjiang with eight stations along the route with 276 kilometers. After Guiguang Line operation, it will only take approximately four hours from Guiyang to Guangzhou, which will effectively reduce the travel time of passengers. The 54 kilometers Baiyun- Longli north line will connect Guiyang Baiyun District and Longli County, and then go through Guiyang Longdongbao airport, Xiaobi Village, end in Guigang line Longli north station, which functions as a good supplement of public transportation in these areas.

Hollysys' management commented, "We are pleased of these two contract wins to supply the ground-based signaling equipments to Guiguang Line Guiyang section and Baiyun- Longli north line, which lays the foundation for Hollysys to further penetrate China's southwest railway market. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, June 9, 2014 /PRNewswire/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or "the Company"), a leading provider of automation and control technologies and applications in China, today announced that it has entered into a loan agreement with IFC (International Finance Corporation), the World Bank Group member focused on private sector development, under which IFC agreed to provide a US$20 million 5-year convertible loan ("C Loan") to support the Company's overseas business.

According to the loan agreement, the C Loan will mature at the fifth anniversary of the disbursement date of the loan. The Company will pay interest at a rate of 2.1% per annum, payable semi-annually. Subject to certain exceptions, the C Loan is convertible into the Company's ordinary shares at IFC's discretion, at an initial conversion price of US$26.35, in whole or in part during the term of the loan. The loan agreement also includes conditions to disbursements, representations, covenants, and events of default customary for financing transactions of this type. The loan will be primarily used to support the Company's overseas business operation.

Hollysys' management commented, "We are pleased of establishing the long-term partnership with IFC. We believe the cooperation between us and IFC will facilitate our development from a domestic leading automation and control technology company into a well-recognized global player in the automation field, leveraging IFC's industry expertise and global network. Hollysys will continue to grasp business opportunities in the overseas with its solid R&D and technology, experienced experts team and strong execution to grow itself in the international arena and create value for our shareholders."

"IFC's financing can support the growth of Hollysys, which plays a critical role in large industrial and rail transportation projects inChina," said Vipul Prakash, IFC Director for Manufacturing, Agribusiness and Services for Asia Pacific."IFC looks forward to a long-term partnership with Hollysys and supporting its expansion in other emerging markets."

SINGAPORE, June 5, 2014 /PRNewswire-FirstCall/ -- HollySys (Asia Pacific) Pte Ltd, a leading provider of automation and control technologies and applications in Asia, announced today that it successfully signed a contract with Land Transport Authority ("LTA") in Singapore to provide the subway with an Integrated Supervisory Control System for the Thomson  Eastern Region Lines in Singapore, and the contract size is approximately SGD16 million.

Integrated Supervisory Control System, also named as Supervisory Control and Data Acquisition System ("SCADA"), is an integrated open software and hardware platform that allows different types of automation sub-systems including power system, alarm system, monitor system, passenger info, access control, broadcasting systems and etc. in the subway stations to be connected on the same control panel via coded signals over communication channels, to enable a comprehensive supervision and control of the systems in the subway stations. HollySys is providing its core proprietary software technology of the Integrated Supervisory Control System and its proprietary Programmable Logic Controllers ("PLC") for this line.

The 30-km long Thomson Line will be fully underground with 22 stations, including six interchange stations. The Eastern Region Line will run together with the Thomson Line as one line when completed. The LTA will announce more details regarding the Eastern Region Line at a later date.

Hollysys' management commented: "We are pleased to have won this contract to supply the subway SCADA system for Thomson & Eastern Region Lines, which is a major breakthrough for Hollysys in the international subway SCADA system market and helps us further penetrate into the local market and world at large. This contract win is the joint efforts by Hollysys Group Rail Transportation team and Concord team leveraging their proprietary technology, design and software customization, project management and project execution capabilities respectively, which create solid synergy in promoting our overseas business. In the future, Hollysys will continue to expand the subway related business opportunities in the Southeast Asia market, leveraging its strong R&D capability, effective management, high-quality products and services and customer recognition to further grow its international business and create value for our shareholders."

Third Quarter 2014  Financial Results

• Quarterly revenue of $95.8 million, representing an increase of 58.8%, compared to $60.4 million year over year, and a decrease of 37.5% compared to $153.4 million quarter over quarter.
• Non-GAAP Diluted EPS at $0.26 reported for the quarter, as compared to $0.21 year over year, and $0.45 quarter over quarter.
• The management of Hollysys stated: "We are very pleased to report a solid financial and operational result for the third quarter of this fiscal year, here I would like to discuss some key events during this quarter:

"During this quarter, we continuously insisted on executing our strategies to vertically penetrate in the high-end industrial automation market while improving our market share in mid to low end markets. We achieved several high-end projects wins in chemical, thermal and enlarge our market share in food beverage and new energy industries. We were also focusing on building strong after-sale department and set long term goals on improving after-sale services. Our solution in reducing waste material emission and environment protection proved to be successful. The past few months have been very exciting for Hollysys. A series of strict testing and on-site engineering application indicates that our new generation K series DCS products meet the requirements for large and complicated projects including power, chemical, etc. Our products will significantly improve our market competitive advantages and effectiveness of project as well as improve our client recognition. For the past few months, our HOLLiAS-N DCS product has been successfully operating in the Yangjiang Nuclear Power Plant, proving that our quality assurance system and products are completely qualified for the high standard of nuclear usage. With China accelerates its nuclear power plants construction in the future, we believe we will benefit more financially as well as in reputation in the long run. Going forward, we believe that we will increase our overall market share in the industrial automation, nurture and quickly take commanding height in our new businesses leveraging our advanced technologies, experienced professionals, profound industry expertise, and customization and innovation capability.

"In rail transportation, during this quarter, we feel excited about the significant high-speed rail ATP contract wins for high-speed trains in 200-250km/h and 300-350km/h, total valued at RMB 687 million (approximately USD 110 million). Besides, our strong R&D capability, extraordinary project management and high-quality and reliable products had ensured our wins on a few recently operated high-speed rail lines, including Xiamen-Shenzhen line, Xi'an-Baoji line, Chongqing-Lichuan line and Wuhan-Xianning line. Those high-speed rail lines are all equipped with our high-speed rail signaling system. We will continue to deliver quality works and work closely with railway authorities in the future. With China's increased rail construction and equipment procurement budget for this year, and exciting prospect envisioned, Hollysys, as a well-recognized rail signaling system provider with strong R&D capability, solid execution and reliable products, will continue to penetrate China's vast railway construction market and achieve significant results.

"For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. With our proprietary technology and products, industry expertise and strong competitive advantages, together with our expanded local channels through Bond and Concord, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields, and creating value for our shareholders."

Outlook for FY 2014

Hollysys management concluded, "In view of our strong backlog and future exciting growth momentum envisioned, we are reiterating our fiscal year 2014 revenue guidance of $500 million to $530 million and non-GAAP net income guidance of $84 million to $86 million. Going into the future, Hollysys will continue to leverage on its core growth pillar foundations of its proprietary technology, profound industry expertise and solution capabilities to increase its market share in respective high-growth end markets. Besides, Hollysys will continue to set up strategic alliance with industry leading organizations to penetrate into new markets and accelerate its growth pace, to create long-term value for our shareholders."

BEIJING, May 16, 2014 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed two contracts to provide the ground-based high-speed rail signaling system and equipment to Qingdao-Rongcheng high-speed rail line ("Qing Rong Line") and Jilin- Huichun high-speed rail line("Ji Hui Line"), valued at RMB127.38 million or approximately USD $20.67 million in total, with designed running speed of 250 km/h for both lines. The contract size for Qing Rong Line is RMB65.33 million or approximately USD $10.60 million, and Ji Hui Line is RMB62.05 million or approximately USD $10.07 million. The two lines are expected to be operated by the end of 2014 and in October of 2015 respectively.

The ground-based high-speed rail signaling system and equipment include Train Control Centers (TCC), Temporary Speed Restriction Servers (TSRS), Line-side Electronic Units (LEU) and other auxiliary equipments, work together with the on-board signaling equipment ATP (Automatic Train Protection), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Qing Rong Line connects three major cities of Qingdao, Yantai and Weihai, with 298.86 km in length. It is the first regional intercity high-speed rail line in Shandong Province. After the completion of this line, the travel time from Qingdao to Weihai will be shortened to 1.7 hours. Ji Hui Line starts from Jilin city and ends at Huichun city with 9 stations and 360.55km in length. It will shorten the travel time from Jilin city to Huichun city to about 2.0 hours after its operation in October of 2015.

Hollysys' management commented: "We are pleased of these two contract wins to supply the ground-based signaling equipments to Qing Rong line and Ji Hui line, which again demonstrated our solid market position and strong brand recognition in China's railway market. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

BEIJING, April 1, 2014 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced that its proprietary HOLLiAS-N Distributed Control System ("HOLLiAS-N DCS") was successfully applied to Unit 1 of Yangjiang Nuclear Power Plant ("Yang jiang NPP") and went into commercial operation on March 26th, 2014.

Hollysys' HOLLiAS-N DCS is one of the high-end DCS products Hollysys developed for 1GW level nuclear power plant, it is also named as the "Center Nervous system" used for the nuclear power plant operation's automatic control and operational monitoring during its running process. It requires highly for its technology complexity and reliability. Hollysys' proprietary HOLLiAS-N DCS successfully passed a series of 168 hours rigorous tests before the commercial operation of Unit 1 of Yangjiang NPP and it met all the parameters and delivered outstanding performance.

China now has 18 operational nuclear power reactors with the installed gross capacity reached 15.86 GW. Yangjiang NPP is the sixth nuclear power plant in mainland China. In addition to Unit 1 of Yangjiang NPP, Unit 2 of Yangjiang NPP is preparing for testing, and Unit 3 is installing and adjusting equipment. Unit 4, 5 and 6 are under construction, all 6 units are expected to be in operation in 2017.

Hollysys' management commented, "We are very pleased that our proprietary HOLLiAS-N DCS is successfully applied in Yangjiang Nuclear Power Plant, which again validates our industry leading technology and capability. We are also glad to see the accelerated construction of nuclear power plants to address the environment protection related issues and to assist the sustainable development of the economy. With our solid position in China's nuclear power automation and control industry, we will continue to benefit from China's nuclear power development, and create value for our shareholders."

BEIJING, March 17, 2014 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed two significant contracts to provide the Automatic Train Protection (ATP) equipment and system for two batches of high-speed trains in 200-250km/h and 300-350km/h, with the contract size for each of RMB 179.98 million or USD $29.35 million, and RMB 507.36 million or USD $82.74 million approximately.

Recall, the on-board signaling equipment ATP (Automatic Train Protection), works together with the ground-based signaling equipment TCC (Train Control Center) as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Hollysys' management commented, "We feel excited about the two significant high-speed rail contract wins. Hollysys proved its strong R&D capability, extraordinary project management, and high-quality products evidenced by a successful track record of high-speed rail lines, including the recently operated Xiamen-Shenzhen line, Xi'an-Baoji line, Chongqing-Lichuan line, and Wuhan-Xianning line, which are equipped with our high-speed rail signaling system. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management, and high-quality products and service, make more contribution to China's railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders."

Second Quarter 2014 Financial Results

• Quarterly revenues of $153.4 million, representing an increase of 75.9% compared to $87.2 million year over year, and an increase of 35.5% compared to $113.2 million quarter over quarter.
• Non-GAAP Diluted EPS at $0.45 reported for the quarter, as compared to $0.24 year over year, and $0.35 quarter over quarter.

The management of Hollysys stated: "We are very excited to report a solid financial and operational result for the second quarter of this fiscal year, here I would like to discuss some key events during this quarter:

"During this quarter, we insisted in executing our strategies to vertically penetrate in the high-end industrial automation market and improve our market share in mid to low end markets, and to horizontally explore the potentials of each customer to supply entire automation and control solutions and service leveraging our complete and mature products and platforms. Both new orders and revenue of industrial automation delivered strong growth, there were satisfied achievements in some particular industries, for instance, thermal power, chemical, petrol chemical, cement, metallurgy and etc. Going forward, we believe that we will increase our overall market share in the industrial automation, nurture and quickly take commanding height in our new businessesleveraging our advanced technologies, experienced professionals, profound industry expertise, and customization and innovation capability.

"In rail transportation, we have seen meaningful progress and consistent revenue contribution in high-speed rail signaling field. We are encouraged by the continuous contract wins to provide the Automatic Train Protection (ATP) equipment and system for 200-250km/h and 300-350km/h high-speed trains recently. Moreover, our proprietary ZPW-2000s Track Circuit was successfully applied in Beijing Xiaohongmen - Baiziwan trial railway line, and passed the trail operation examination by Beijing Railway Bureau. This will expand our products providing in the railway transportation market and will grow to be another revenue growth driver for Hollysys in the future. All in all, as a well-recognized rail signaling system provider, we are confident that with strong R&D capability, solid execution and reliable products, Hollysys will continue to penetrate China's vast railway construction market and explore international opportunities.

"For the overseas industrial automation and rail transportation expansion, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. With our proprietary technology, industry expertise and strong competitive advantages, together with our expanded local channels through Bond and Concord, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields."

Outlook for FY 2014

Hollysys management concluded, "In view of solid industrial automation growth, strong recovery of high-speed rail signaling segment, and future exciting growth momentum envisioned, we are revising up our fiscal year 2014 revenue guidance from previous $460 million to $490 million, to $500 million to $530 million and non-GAAP net income guidance from previous $65 million to $69 million, to $84 million to $86 million. Going into the future, Hollysys will continue to leverage on its core growth pillar foundations of its proprietary technology, profound industry expertise and solution capabilities to increase its market share in respective high-growth end markets. Besides, Hollysys will continue to set up strategic alliance with industry leading organizations to penetrate into the new market and accelerate its growth pace, to create long-term value for our shareholders."

BEIJING, Dec. 23, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a sizable contract to provide the Automatic Train Protection (ATP) equipment and system for 200-250km/h high-speed trains, with the contract size being approximately RMB 100.37 million or USD$ 16.40 million.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the critical control elements in the high-speed railway signaling system to ensure safe and reliable high-speed railway operation.

Hollysys' management commented: "We are very pleased with our continuous sizable contract wins in the high-speed rail business sector. As a well-reputed high-speed rail signaling system provider, Hollysys will leverage its strong R&D capability, solid execution and reliable products operation, to further penetrate China's railway construction market and explore international opportunities in order to create value for our shareholders."

First Quarter 2014 Financial Results

• Quarterly revenues of $113.2 million, representing an increase of 28.6% compared to $88.1 million year over year, and a slight decrease of 0.2% compared to $113.4 million quarter over quarter.
• Non-GAAP Diluted EPS at $0.35 reported for the quarter, as compared to $0.28 year over year, and $0.29 quarter over quarter.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated, "We are pleased to report robust financial and operational results for the first quarter of this fiscal year, here I would like to discuss some key events during this quarter:

"Industrial automation continued its solid growth, even though the revenue performance was relatively weak in this quarter, but the new orders taken were continuously recovering and achieved 20% growth. The weak industrial automation revenue growth in this quarter was mainly because of the decline of new orders growth in the second quarter of last fiscal year. During this quarter, we constantly executed our strategy to enhance our position in the high-end industrial automation market and increase our market share in mid to low end markets. With the new generation DCS released to the market, we are going to expand our market position in chemical, petro-chemical, metallurgy industries as what we have achieved in the thermal power industry today. Besides, with more of our proprietary automation and control systems and technologies released to the market and our total solution capabilities for plants' automation and control, our industrial automation sector will continue to deliver fruitful results and bring significant revenue contribution."

"In this quarter in the nuclear sector, our joint venture, China Techenergy Co., Ltd. ("CTEC"), established with China General Nuclear Power Corporation ("CGNPC"), was granted a new contract to commission automation control and reactor protection system for #5 and #6 units of Yangjiang Nuclear Power Station in September. As the only qualified local automation and control technology provider to the nuclear industry in China, Hollysys will leverage the strategic alliance with the largest nuclear builder and operator in China to further penetrate the nuclear automation and control market with our nuclear power plant automation and control solutions."

"In the rail transportation, we will benefit from the accelerated high-speed rail construction after China Railway Corporation established. In August, we signed a contract to supply our ground-based high-speed rail signaling system to the Lanzhou-Xinjiang high-speed rail line Xinjiang section, the contract was valued at approximately RMB 118.37 million or US$19.20 million. In October, we signed a significant ATP contract of RMB 316.34 million or US$ 51.47 million for 200 km/h high-speed railway trains and 300 km/h high-speed railway trains. With our advanced technology, outstanding reliability and well-reputed track records, Hollysys will continuously capture its fair share in China's fast high-speed rail built out and the world as well."

"In the overseas sector, we are sending qualified and experienced engineers from China to overseas, and recruiting local engineers to expand our overseas team. We believe that with our proprietary technology, industry expertise and strong competitive advantages, together with our expanded local channels through Bond and Concord, we will continue to make exciting achievements in the international market in both industrial and rail transportation fields."

BEIJING, October 14, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and appannounced today that it signed two sizable contractslications in China,  to provide the Automatic Train Protection (ATP) equipment and system for the 200-250km/h and 300-350km/h high-speed trains, and contract size for each is RMB 211.17 million or USD $34.36 million, and RMB 105.17 million or USD 17.11 million respectively. The delivery of the products will be in several batches and completed by the early of 2014.

Recall, the on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center) and RBC (Radio Block Center), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "High-speed rail signaling system is one of the pillar businesses of Hollysys, together with industrial automation, nuclear and subway automation businesses. We are very pleased of the two significant high-speed rail ATP contract wins, which demonstrate our solid market position, leading technology and products reliability.

Last year China's high-speed rail construction was slowed down influenced by the Ministry of Railway reorganization. From January to July this year, the railway fixed asset investment is only accomplished by 40% according to China's 12^th Five Year Plan for this year. From August this year, the China Rail Corporation (CRC) started the procurement of trains. In view of the importance of rail construction for driving the whole economy's growth and related documents issued by the central government, we are expecting the investment will be increased in the second half of this year and the railway construction momentum will continue in the next few years. Besides, the intercity lines construction will be of great prospect, and we are actively developing our intercity high-speed train control signaling systems in compliance with the new requirements.

Going into the future, Hollysys will leverage its strong R&D capability, solid execution, advanced software solution and reliable products operation, to drive the company to be one of the leading rail signaling system technology and product providers in the world, and create value for our shareholders."

BEIJING, September 25, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced that its nuclear joint venture, China Techenergy Co., Ltd. ("CTEC"), established with China General Nuclear Power Corporation ("CGNPC"), was granted a new contract to commission automation control and reactor protection system for #5 and #6 units of Yangjiang Nuclear Power Station, of which including Hollysys' proprietary Distributed Control System ("HOLLiAS-N DCS") and CTEC's proprietary reactor protection system.

Hollysys' HOLLiAS-N DCS is one of the high-end DCS products Hollysys developed for 1GW level nuclear power plant; it is also named as the "nervous system" used for the nuclear power plant operation's automatic control and operational monitoring during its running process. It requires highly for its technology complexity and reliability. Hollysys' proprietary HOLLiAS-N DCS successfully passed a series of rigorous tests and was successfully installed and operated in #1 unit of Hongyanhe and #1 unit of Ningde Nuclear Power stations and it met all the parameters and delivered outstanding performance.

In the #5 and #6 units of Yangjiang Nuclear Power Station, CTEC's proprietary reactor protection system will be installed for the first time, which is a significant breakthrough for China's proprietary nuclear automation and control technology application.

The Yangjiang Nuclear Power Station in Guangdong province is funded and constructed by a consortium of power corporations led by China General Nuclear Power Corporation. The plant is built to have six one-gigawatt (GW) pressurized water units, #5, 6 units using CGNPC's proprietary ACPR-1000 technology which is promoted based on CPR-1000 technology which was applied to #1, 2, 3, 4 units.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "We are pleased of the continuous order flow from CGNPC to our nuclear JV for control systems and reactor protection system products. As the only qualified local automation and control technology provider to the nuclear industry in China, Hollysys will leverage the strategic alliance with the largest nuclear builder and operator in China to further penetrate the nuclear automation and control market both in China and internationally, to create value for our shareholders."

CTEC's current order book is consisted of the following fourteen reactors: #2, 3, 4 units of Hongyanhe Nuclear Power Station, #2, 3, 4 units of Ningde Nuclear Power Station, #1, 2, 3, 4, 5, 6 units of Yangjiang Nuclear Power Station, and #1, 2 units of Fangchenggang Nuclear Power Station.

BEIJING, August 19, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications inChina, announced today that it signed a contract to provide its ground-based high-speed rail signaling system to the Lanzhou-Xinjiang high-speed rail line ("Lanxin High-speed Rail") Xinjiang section ("this section"). The contract is valued at approximately RMB 118.37 million or US$19.20 million.

As per the terms of the contract, Hollysys will provide the ground-based high-speed rail signaling system, including Train Control Centers (TCC), Line-side Electronic Units (LEU), Temporary Speed Restriction Servers (TSRS) and other auxiliary equipment, which are expected to be delivered and installed by May 2014.

The Lanxin High-speed Rail line starts from Lanzhou city in Gansu province, and goes through Xining city inQinghai province, Jiayuguan in Gansu Province, and then goes into Xinjiang province and ends in Urumchi city, with 1,435km in total length and 31 stations. This section starts from the boarder of Gansu and Xinjiang provinces, and goes through Hami city, Turpan city and ends up in Urumchi city with 16 stations along the route and 710km in length. This section is expected to start operation by the end of 2014 with a designed traveling speed of 200-250 km/h.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are excited at this sizable contract win to supply our ground-based high-speed rail signaling equipments to the Lanzhou-Xinjiang high-speed rail line's Xinjiang section, which again demonstrates our technological capability. We believe that the restart of high-speed rail construction will bring us significant opportunities to provide our signaling systems and create value for our shareholders."

Fourth Quarter 2013 Financial Results

• Quarterly revenues of $113.4 million, representing an increase of 28.7% compared to $88.1 million year over year, and an increase of 87.7% compared to $60.4 million quarter over quarter.
• Gross margin at 34.3%, as compared to 41.4% year over year, and 43.8% quarter over quarter.
• Non-GAAP net income attributable to Hollysys of $16.6 million, a 32.8% increase compared to $12.5 million year over year, and a 41.9% increase compared to $11.7 million quarter over quarter
• Non-GAAP Diluted EPS at $0.29 reported for the quarter, as compared to $0.22 year over year, and $0.21 quarter over quarter.

 Dr. Changli Wang, Chairman and CEO of Hollysys, stated, "Looking back of the past fiscal year 2013, we were making strides under the circumstances of the slowdown of economic growth and economic restructure adjustment, which hampered our progress. In the early of this fiscal year, industrial automation growth rate declined sharply, which knocked us that the situation was worse than we expected and could last for a relatively long period. Even though we outperformed the whole industry and other automation providers, we were not satisfied and we did not complain. We analyzed the business environment calmly and adjusted our strategies in time. At that time our small medium enterprises got affected by the weak economy most, we set the strategies that vertically we would enhance our position in the high-end industrial automation market and spare no efforts to increase our market share in mid to low end markets; and horizontally we would dig deep the potentials of each customer to supply entire automation and control solutions and service leveraging our complete and mature products and platforms. Meanwhile we organized industry professional teams and appointed some new sales managers and conducted some personnel change, cut some management members' bonus and salary including myself, to boost our will to fight. In the past fiscal year, even though difficult, we overcome the hardships and obstacles and till this quarter, we recovered growth rate of industrial automation, and going into next fiscal year we believe that with the recovery of the economy and rail orders inflow, we could deliver much better results. Here I would like to share some of our achievements and breakthroughs and our future development thoughts in the specific areas:

Outlook for FY 2013

Dr. Wang concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we set our guidance for fiscal year 2014 with revenue in the range of $460 million to $490 million and non-GAAP net income in the range of $65 million to $69 million."

BEIJING, July 10, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide its proprietary Distributed Control System ("DCS") combined process fieldbus communication technology ("ProfiBus") for 2�1GW ultra-supercritical thermal power generating units in Fujian Hongshan Thermal Power Plant (Hongshan Power Plant).

ProfiBus is an universal, open fieldbus which links controllers or control systems with decentralized field devices like sensors and actuators on the field level and enables consistent data exchange with higher ranking communication systems. The consistency of ProfiBus is enabled by utilizing a single, standardized, application-independent communication protocol which supports fieldbus solutions both in factory and process automation. ProfiBus permits the fast communication with intelligent and distributed devices and brings enormous savings resulting from the reduction in cabling and input/output hardware, and can transmit significantly greater amount of information which implies significant cost advantages for plant operation and maintenance.

In this project, Hollysys' DCS will control more than 13,000 points and the ProfiBus will control over 3,600 distributed devices for the two GW level generating units, which will be the largest ProfiBus application in GW level thermal power plant in China. This also marks another milestone for Hollysys in the GW level thermal power plant industry adopting ProfiBus technology together with its high-end DCS.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "We are very proud of the contract win to apply our proprietary ProfiBus DCS to the largest scale of thermal power generating units in China, which evidenced our leading technology and capability. Since the end of last year, we restructured our marketing sales force and organized industry professional teams to further penetrate the high-end segments of industrial automation market, and we have gradually seen the fruitful results. Going into the future, we will continue to capture our fair share in the high-end market and intensify our sales efforts in the low to mid-end market to further enhance our market position, and create value for our shareholders."

BEIJING, July 8, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the ground-based high-speed rail signaling system to Mudanjiang-Suifenhe high-speed rail line ("this line") with a designed traveling speed of 200 km/h and 138.82 km in length. The contract is valued at approximately RMB 33.77 million or US $5.47 million.

As per the terms of the contract, Hollysys will provide the ground-based high-speed rail signaling system, including Train Control Centers (TCC), Line-side Electronic Units (LEU), Balises and other auxiliary equipment. Mudanjiang-Suifenhe high-speed line connects Mudanjiang city and Suifenhe city, which is a portion of Harbin-Suifenhe Line. This line is expected to start operation by 2015. After the completion of this line, it will shorten the travel time from roughly 4 hours to within 1 hour between the two cities.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are pleased of winning this contract to supply the ground-based signaling equipments to Mudanjiang-Suifenhe high-speed rail line, which provides a good foothold for Hollysys to further enhance its market position in the northeast China. We believe that with our strong R&D and implementation capability and well-reputed track records, Hollysys will continue to benefit from China's high-speed rail construction and create value for our shareholders."

BEIJING, July 3, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced that its proprietary HOLLiAS-N Distributed Control System ("HOLLiAS-N DCS") was successfully applied to Unit 1of Hongyanhe Nuclear Power Plant ("Hongyanhe NPP") and went into commercial operation in June 2013.

Hollysys' HOLLiAS-N DCS is one of the high-end DCS products Hollysys developed for 1GW level nuclear power plant, it is also named as the "Center Nervous system" used for the nuclear power plant operation's automatic control and operational monitoring during its running process. It requires highly for its technology complexity and reliability. Hollysys' proprietary HOLLiAS-N DCS successfully passed a series of rigorous tests before the commercial operation of Unit 1 of Hongyanhe NPP and it met all the parameters and delivered outstanding performance.

Hongyanhe NPP is the first operated nuclear power plant in China's Northeast provinces. With Unit 1 of Hongyanhe NPP's operation,China now has 17 operational nuclear power reactors with the installed gross capacity reached 14.77 GW. Hollysys' joint venture with China General Nuclear Power Corporation ("CGNPC"), China Techenergy Co., Ltd. ("CTEC"), currently has 12 nuclear reactors in their backlog which the JV has not fully signed contracts with Hollysys for HOLLiAS-N DCS providing, including Unit 2, 3, 4 of Hongyanhe Nuclear Power Plant; Unit 2, 3, 4 of Ningde Nuclear Power Plant; Unit 1, 2 of Fangchenggang Nuclear Power Plant; and Unit 1, 2, 3, 4 of Yangjiang Nuclear Power Plant.

The electricity generated by Unit 1 of Hongyanhe NPP can meet 1/4 of Dalian City's electricity requirement, the emission reduced is equal to the function of 16,500 hectares of forest. After operation begins for the first four units of Hongyanhe NPP, it will be able to supply all the electricity for Dalian city and reduce the emission of 24 million tons of carbon dioxide, 230,000 tons of sulfur dioxide and 150,000 tons of nitric oxide annually.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "We are very pleased that our proprietary HOLLiAS-N DCS has been successful applied in Hongyanhe Nuclear power plant, which again validates our industry leading technology and capability. We are also glad to see the accelerated construction of nuclear power plants to address environment protection related issues and to assist the sustainable development of the economy. With our solid position in China's nuclear power automation and control industry and our Joint Venture with China General Nuclear Power Corporation, we will continue to benefit from China's nuclear power development, and create value for our shareholders."

BEIJING, June 28, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a series of contracts recently to provide its Energy Management System ("EMS") to a few domestic chemical enterprises including COFCO Biochemical (Zhaodong) Energy Co., Limited, Henan Jinkai Group Yanhua Chemical Co., Limited, Junma Chemical Co., Limited, Jiheng Group and Henan Tianguan Biological Engineering Company Limited.

Energy Management System ("EMS") is an energy management software system used to monitor, record, analyze, and optimize the energy consumption in the process industries. Functions of EMS include energy prediction and planning, measurement, information collection and analysis, diagnosing, dispatching, energy balancing, energy optimization and etc. It can quantify the energy consumption at different stages precisely and give the managers a guidance of how to improve the energy efficiency, and set up a scientific procedure to optimize energy usage and raise productivity. It is estimated that the EMS can reduce the whole plant's energy cost by 1-3% for the same manufacturing equipments.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are very excited about the series of contract wins from the energy management field, which shows it is an emerging and inspiring business in the industrial automation market in China in view of the government's more stringent regulations and incentive policies regarding energy conservation and emissions reduction.  As Hollysys has a complete suite of automation and control products and systems, we are confident that the trend of environment protection and emission reduction will provide Hollysys more opportunities. With our leading technology, rich industry experience and well recognized solutions, Hollysys will continue to penetrate and capture our fair share in industrial automation market, and create value for our shareholders."

BEIJING, June 24, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide its ground-based high-speed rail signaling system to Datong-Xi'an high-speed rail line Yuanping-Xi'an section ("this section") with a designed traveling speed of 250 km/h and a total length of 678.44 km. The contract is valued at approximately US $14.72 million or RMB 90.99 million.

Pursuant to the terms of the contract, Hollysys will supply its ground-based high-speed rail signaling system, including Train Control Center (TCC), Line-side Electronic Units (LEU), Temporary Speed Restriction Server (TSRS) and other auxiliary equipments, which are expected to be delivered and installed by July 2014.

This section will start from Yuanping city, and then go through Xinzhou, Taiyuan, Linfen and Yuncheng cities and arrive in Xi'ancity with 21 stations along the route. Datong-Xi'an high-speed rail line connects Datong city and Xi'an city with a total length of 859 kilometers. Upon its operation, it will shorten the travel time from 16 hours to 4 hours between the two cities.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are very pleased of winning this contract to supply our ground-based high-speed rail signaling system to Datong-Xi'an line Yuanping-Xi'an section, which is again a demonstration of our key market position in China's high-speed rail build out. We believe that there will be continuous development of high-speed rail and subway network across China, given China's specific conditions and according to China's 12^th Five-year Plan. With our solid market position, industry leading technology and well-reputed track records, Hollysys will continue to penetrate and take our fair share in both rail and subway sectors, and create value for our shareholders.

Third Quarter 2013 Financial Results

• Quarterly revenues of $60.4 million, representing a decrease of 8.7% compared to $66.1 million year over year, and a decrease of 30.8% compared to $87.2 million quarter over quarter.
• Gross margin at 43.8%, as compared to 39.3% year over year, and 32.1% quarter over quarter.
• Non-GAAP net income attributable to Hollysys of $11.7 million, a 0.6% increase compared to $11.6 million year over year, and a 13.9% decrease compared to $13.6 million quarter over quarter
• Non-GAAP Diluted EPS at $0.21 reported for the quarter, as compared to $0.21 year over year, and $0.24 quarter over quarter.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "During this quarter, we unswervingly executed our originally set strategies to further intensify our marketing efforts in industrial automation, expand sales and service network across China and enhance our market position. We are glad to see that gradual recovery and new order increase of industrial automation business, which we believe will bring solid financial performance in the upcoming quarters; New products lines including 5th Generation DCS (Distributed Control System), SIS (Safety Instrumentation system), Batch, and other advanced control systems are gradually contributing more to the revenue growth, as these new products are supplementing our total solution providing and building up recognition from end customers; New businesses, like coaling mining safety solutions and machinery level control devices, are well in track for solid growth. Even though the economic downturn still extends negative impact to our industrial automation business, we continuously outperform market growth and we are not satisfied with the results achieved. Our efforts in intensifying marketing efforts to enhance market position in low-middle end market and organizing professional teams to tackle high-end market will gradually reflect on the revenue and net income growth. Besides, we believe that the intention to reduce labor cost and energy consumption, protect the environment, improve efficiency will be the major trends and will bring us tremendous business opportunities. With our solid R&D capability and profound industry knowledge, we believe Hollysys is in a superior position as we pursue future growth in industrial automation market.

"The high-speed rail business recovery is much slower than we expected, but it will be undoubtedly recovered to its normal construction pace as China is adhering to the 12th Five Year Plan for the high-speed rail construction given China's strong demand for rail transportation. In this quarter, we signed a contract to provide the Train Control Center (TCC) and Temporary Speed Restriction Server (TSRS) to Chongqing-Lichuan high-speed rail line valued at approximately 6.54 million. Besides our efforts in aggressively penetrating domestic high-speed rail and subway market, we are also exploring the overseas high-speed rail and subway opportunities, which we believe there will be fruitful results to be yield in the near future.

"More excitingly, on April 1 this year, we successfully completed the acquisition of 100% ownership of a Singapore headquartered company, Bond Corporation Pte. Ltd. and its group of companies ("Bond") to further establish our strong foothold in Southeast Asia. Bond provides complete mechanical and electrical solutions to a wide array of industries, including factories, data centers, banks, airports, commercial centers, residential buildings and infrastructure works with strong presence in Singapore andMalaysia. We are very pleased with this highly accretive and complementary acquisition, which will assist Hollysys in penetrating to the fast growing South-East Asia area. We are also excited to be able to retain a team of seasoned professionals through this acquisition, who will form the foundation of our international team to greatly enhance Hollysys capability to tackle the international market. Going into the future, Hollysys will leverage its strong proprietary technology and its capabilities accumulated from its leading positions in China's rail and industrial segments to enter and penetrate into the international market, through both organic growth and accretive acquisitions to maximize our shareholder value."

Outlook for FY 2013

Dr. Wang concluded, "Due to the unexpected delay of high-speed rail orders and the weak macro-economy's impact, we are revising our previously communicated fiscal year 2013 revenue guidance of $385 million to $410 million, down to $335 million to $355 million, and non-GAAP net income guidance of $63 million to $67 million, down to $57 million to $60 million. Going into the near future, we believe with the recovery of high-speed rail construction, further penetration in the industrial automation and revenue supplement from overseas market, Hollysys is well positioned for stable and sustainable growth leveraging its leading proprietary technology, strong innovation and execution capabilities, to create long-term value for our shareholders."

BEIJING, April 10, 2013 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has successfully completed its acquisition of Bond Corporation Pte. Ltd., and its group of companies ("Bond").

The total consideration for the acquisition is approximately US$ 73 million, with payment 50% in cash and 50% in stock. The stock will be issued to Bond shareholders in three amounts over two years based upon a mutually agreed two-year incentive program. Additional ordinary shares, as a premium on performance, will be issued to the Bond shareholders if Bond outperforms the established targets, but the premium will not exceed 15% of the total incentive shares in any case. Hollysys and Bond have agreed upon the compensation and incentives to be given to the management team of Bond to maintain the team stability after the acquisition.

Bond provides mechanical and electrical solutions with end to end capabilities in design, engineering, procurement, project management, construction and commissioning, and maintenance to a wide array of industries, including factories, data centers, banks, hospitals, airports, power stations, gas and instrumentation plants, hotels, commercial centers, residential buildings and infrastructure works in Southeast Asia. Bond has a strong market presence, close client relationships, and a highly renowned brand name recognition.

Dr. Changli Wang , CEO and Chairman of Hollysys, commented: "We are very pleased that the acquisition of Bond is now successfully completed. The seasoned and experienced management team will remain intact, and the daily operation of Bond will not be impacted by the acquisition transaction. Bond has demonstrated its penetration and implementation capability from its track record and will continue to spread its operational foot print throughout Southeast Asia with Hollysys as its backbone supporter."

Mr. Yap Choong, Executive Director of Bond, said: "The response from our clients and employees is overwhelmingly positive. We are very happy and proud to be part of Hollysys, the leading provider of automation and control technologies and applications in China. With Hollysys' brand name and R&D, customization and production capability, we are in a better position to generate returns to our owner and share holders."

BEIJING, Oct 29, 2012 /PRNewswire-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to provide the Line-side Electronic Unit (LEU) and Balise to Chongqing-Lichuan high-speed rail line. The contract is valued at approximately US $2.85 million or RMB 17.98 million.

LEU and Balise together is a portion of the ground-based high-speed rail signaling system. The ground-based signaling system normally includes Train Control Center (TCC), Temporary Speed Restriction Server (TSRS), LEU, Balise and other auxiliary equipments. The TCC and TSRS supplying contract will be in a separate bidding in the near term. The separate biding of the main portions of the ground-based signaling system is mainly because of the different funding sources by Ministry of Railways to construct this line.

Chongqing-Lichuan high-speed rail line connects Chongqing city and Lichuan city in Hubei Province, which is an important portion of one of the "Four Horizontals" - Shanghai-Wuhan-Chengduhigh-speed rail line. Chongqing-Lichuan line's designed traveling speed is 200 km/h with 262km in total length.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are pleased of winning this contract to supply the ground-based signaling equipments to Chongqing-Lichuan line, which established a solid foundation to further explore the southwest high-speed rail market of China. We are expecting continuous contract awards by Ministry of Railways seeing that China has expedited high-speed rail construction to ease the transportation and to fuel economy growth. We believe that with our solid market position, strong R&D capability and well-reputed track records, Hollysys will continue to benefit from China's high-speed rail expansion and create value for our shareholders."

Q4 Financial Highlights

• Quarterly revenues of $88.1 million, representing an increase of 22.6% compared to $71.9 million year-over-year, and an increase of 33.2% compared to $66.1 million quarter-over-quarter.
• Gross margin at 41.4%, as compared to 28.8% year-over-year, and 39.3% quarter-over-quarter
• Non-GAAP net income attributable to Hollysys of $12.5 million, representing an increase of 77.4% as compared to $7.0 million year-over-year, and an increase of 7.2% as compared to $11.6 million quarter-over-quarter.
• Non-GAAP Diluted EPS at $0.22 reported for the quarter, as compared to $0.13 year-over-year, and $0.21quarter-over-quarter.
• Backlog of $389.8 million as of June 30, 2012, a 31.5% increase compared to $296.4 million year-over-year, and 3.0% decrease compared to $401.8 million quarter-over-quarter.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "We are very pleased to report solid financial and operational performance for the fourth quarter and fiscal year 2012 and we feel excited about our achievements and breakthroughs in several sectors, here I would like to take this opportunity to discuss some key events and developments during this quarter as well as in this fiscal year:

Industrial automation business continues its strong growth momentum in both revenue and new orders performance bolstered by our well set expansion and total solution strategies. We are pleased that we completed the development of and released our 5th generation DCS (Distributed Control System), which represents higher reliability, stability, better safety protection and user-friendliness with advanced system architecture, hardware, software designs and industry expert solutions. The 5th generation DCS is more competitive compared with multinational's products and will be the best cost performance product in the market. Besides, we completed the development and certified our SIS (Safety Instrumented System) -HiaGuard with SIL3 (Safety Integrity Level 3) in compliance with international standards and won great respect and recognition from the world ranking certification company TUV Rheinland for our extraordinary innovation capability, high working moral, and rigorous development procedures. HiaGuard is the first domestically developed technology and breaks the monopoly by foreign systems in China. Hollysys' HiaGuard can be applied for ESD (Emergency Shutdown System), PSD (Process Shutdown System), FGS (Fire and Gas Systems) and etc for various industries. This system not only brings us to a wholly new industry which we will transform the market scenario like our DCS has done, but also complements our total solution providing for our end customers. More excitingly, within the vast industrial automation market we have found enormous demand to apply our automation devices and solution to address customers heightened concern of energy consumption, safety, environmental protection as well as labor cost reduction; what's more, we are focusing on growing the post sales service based on our large client base and addressing customers' needs. We believe that, leveraging our strong R&D, customization and innovation capability, brand name recognition and market penetration capability, we will continue to penetrate China's industrial market and strive to be the absolute market leader in China's automation and control industry.

BEIJING, June 11, 2012 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract to supply its ground-based high-speed rail signaling system to Xi'an-Baoji high-speed rail line with a designed traveling speed of 300-350 km/h and 138km in total length. The whole contract is valued at approximately US $8.86 million or RMB 56 million.

Pursuant to the terms of the contract, Hollysys will supply its ground-based high-speed rail signaling system, including Train Control Center (TCC), Radio Block Center (RBC) and other auxiliary equipments, which are expected to be delivered and installed by May 2013.

Xi'an-Baoji high-speed rail line connects Xi'an city in the east and Baoji city in the west of Shaanxi Province, which is a main portion of one of the "Four Horizontals" - Xuzhou-Lanzhou high-speed rail line. Xi'an-Baoji line will connect Zhengzhou-Xi'an high-speed rail line in its east; Zhengzhou-Xi'an line travels 300-350 km/h and is equipped with Hollysys' high-speed rail signaling system.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are very pleased of winning this contract to supply our ground-based high-speed rail signaling system to Xi'an-Baoji line after a long halt on China high speed rail expansion program. The restart of China high-speed rail expansion restores public confidence in high-speed construction while this significant contract win enhances our faith that China will continue to develop its high-speed rail network in the face of rising public demand for traveling efficiency and future economic development. We believe that with our solid market position, strong R&D capability and well-reputed track records, Hollysys will continue to leverage on its core growth pillar foundations to benefit from the recovery of China high-speed rail expansion and continue to create value for our shareholders."

Q3 Financial Highlights

• Quarterly revenues of $66.1 million, representing an increase of 18.6% compared to $55.8 million year-over-year.
• Gross margin at 39.3%, as compared to 40.3% year-over-year, and 38.5% quarter-over-quarter
• Non-GAAP net income attributable to Hollysys of $11.6 million, as compared to $9.6 million and a 20.8% increase year-over-year.
• Non-GAAP Diluted EPS at $0.21 reported for the quarter, as compared to $0.17 year-over-year
• Record-breaking backlog of $401.8 million as of March 31, 2012, a 43.1% increase compared to $280.9 million year-over-year, and 21.0% increase compared to $332.1 million quarter-over-quarter.
• Inventory turn-over days of 68 days for this quarter compared to 101 days year-over-year.
• Quarterly DSO of 160 days, as compared to 156 days year-over-year.
• Generate net cash provided by operating activities of $1.5 million for this quarter.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "We are pleased to report another quarter with solid operating and financial results. Here I would like to take this opportunity to discuss some key events that took place in this quarter:

"Industrial automation is continuously growing towards the top position in domestic market and starting to build its brand power globally. We keep seeing strong business demand across all of our products and industry verticals. The significant growth we reported in the quarter clearly validates our dedicated industry expert total solution and sales network expansion strategies. Our established brand recognition, strong track record of customization, quality and service, efficient R&D and implementation together with customer-orientated flexibility give us a significant competitive advantage over domestic and international competitors. We believe Hollysys is in an excellent position as we pursue future growth in industrial automation market.

"In our high-speed rail segment, we successfully won the international bid and signed a contract of approximately US$63.15 million with MTR Corporation Ltd to provide the complete suite of high-speed rail signaling systems to Guangzhou-Shenzhen-Hong Kong Express Rail Hong Kong Section. As the first-ever international contract for our high-speed rail signaling system amid the stiff competition from other world class signaling system providers, this contract is of paramount importance and remarkable milestone in steering our business to the next level in the global arena. On the domestic side, we believe we will continue to benefit from the continuous construction of high-speed rail called by the huge demand for rail transportation across the country. With the successful Safety certification in accordance with International Standards for our Signaling products and system, we will continue to leverage on our strong commitment to Research & Development, quality and service to further explore business opportunities in bothChina and abroad.

"In subway business, in addition to the Hong Kong MTR contract and Beijing Subway Line 14 contract of supplying the integrated surveillance control and data acquisition system (SCADA) we signed last quarter, we are expecting our self-developed proprietary subway signaling system to obtain the European Safety Standard Certification Level 4 (SIL 4) by the end of 2012. We are excited about the subway signaling system because it clearly differentiates Hollysys and will bring us to a higher level in competing with other players to propel our subway business in both Chinese and international market.

"What's more, we made substantial progress in our strategy of international market expansion through our successfully acquired company - Concord. In this quarter Concord successfully signed a retrofit project of USD $14.02 million with Shaw Brothers Limited to supply and provide installation and electrification services for Shaw Centre in Singapore. We are seeing building automation is becoming a lucrative market given the increasing high-end commercial buildings and growing demand for retrofit projects of existing commercial buildings in many markets. Meanwhile, Concord has been actively working on a few international biddings and projects in rail and industrial automation sectors. The acquisition of Concord has been proved to be a good synergy and successful by combining our proprietary technology and Concord's international team, we will continue to leverage the core capabilities to further penetrate into the international arena and build Hollysys into a world leading automation and control technology and products provider."

Outlook for FY 2012

Dr. Wang concluded, "Due to severe slow down of China's high-speed development, as well as overseas projects delayed because of the mixed international environment. We are revising the previous announced FY2012 revenue guidance between $354 million and $356 million, down to between $310 million and $ 320 million; but we are confidently reiterating our FY 2012 net income guidance between $ 57 million and $ 58 million unchanged."

BEIJING, March 20, 2012 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI)("Hollysys" or the "Company"), a leading provider of automation, control technologies and applications in China, announced today that it has successfully won contracts to design, supply and implement the High-Speed Rail Signaling Systems for the MTR Corporation. These contracts are primarily to implement the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL). The contracts are valued at approximately HK $489.9 million, or US $63.15 million.

Pursuant to the terms of the contracts, Hollysys will design, supply and implement both the on-board signaling equipment Automatic Train Protection (ATP), and the ground-based high-speed rail signaling equipment and systems including the Train Control Center (TCC), Lineside Electronic Unit (LEU), Vital Data Network, Interlocking System, Centralized Traffic Control (CTC), track circuit and auxiliary products, and provide related services for the Hong Kong section of the XRL connecting the West Kowloon Terminus in Hong Kong and Huangguan in Shenzhen which is 26 km in length, with a design line speed of 200km/h. The project is scheduled to be completed in 2015.

Hollysys has a highly reliable, proven and mature High-Speed Rail Signaling Technology and a successful track record in delivery and implementation on a number of high-speed rail lines including the Zhengzhou-Xian Line, Guangzhou-Shenzhen Line, Beijing-Shijiazhuang-Wuhan Line and Qinhuangdao-Shenyang Line, etc.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We feel very humble, honored and excited to win these contracts especially from such a reputable client as MTR given the stiff competition from other world class signaling system providers. This is a strong validation of our proven world class technology and it's recognition by MTR. This contract is of paramount importance as it is our first-ever international contract for our high-speed rail signaling system and marks a significant breakthrough and remarkable milestone achievement in steering our business to the next level in the global arena. "

"With the successful Safety certification in accordance with International Standards for our Signaling products and system, we will continue to leverage on our strong commitment to Research & Development and our implementation capability to further grow and strengthen our company. We will continue to explore the opportunities in international high-speed rail, subway and industrial automation sectors to provide our propriety products and systems and build Hollysys into a leading world class automation technology company through stable and sustainable growth, and continue to create value for our shareholders."

BEIJING, March 7, 2012 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that its wholly owned subsidiary Concord Corporation Pte. Ltd. ("Concord") signed a retrofit contract with Shaw Brothers Limited to supply and provide installation of mechanical and electrical equipment, fire protection system, civil & structural works, relocation of the existing electrical equipment and replacement of cables and others for Shaw Centre in Singapore, valued at approximately USD $14.02 million. The project is expected to be completed by October of 2012.

Shaw Center is one of the oldest and most recognized buildings in Singapore and this project will embark the BCA Green Mark Incentive Scheme which was introduced by Building Construction Authority (Singapore) (BCA) in 2005, to provide a meaningful differentiation of buildings which incorporates internationally recognized best practices in environmental design and performance.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are pleased to announce this sizable contract win by Concord and glad to see that Concord is continuously winning contracts despite the current global economy situation. This contract winning also demonstrates Concord's smooth and successful integration into Hollysys and its business development is well on track. Meanwhile, Concord is actively working on winning new international businesses in rail and industrial automation sectors in Southeast Asia and the Middle East. We are confident that it will continue to pave our way to a broader market space and to create value for our shareholders."

Second Quarter 2012 Results

• Quarterly revenues of $80.3 million, representing an increase of 8.0% compared to $74.4 million year-over-year.
• Gross margin at 38.5%, as compared to 36.0% year-over-year, and 37.8% quarter-over-quarter
• Non-GAAP net income attributable to Hollysys of $20.4 million, as compared to $15.0 million and a 36.4% increase year-over-year.
• Non-GAAP Diluted EPS at $0.37 reported for the quarter, as compared to $0.27 year-over-year
• Record-high backlog of $332.1 million as of December 31, 2011, a 15.1% increase compared to $288.5 million year-over-year, and 10.7% increase compared to $300.1 million quarter-over-quarter.
• Inventory turn-over days of 54 days for this quarter compared to 60 days year-over-year.
• Generate record-breaking net cash provided by operating activities of $57.8 million for this quarter.

Backlog Highlights

Hollysys' backlog as of December 31, 2011 was $332.1 million, compared to $300.1 million on September 30, 2011, and $288.5 million on December 31, 2010.

Outlook for FY 2012

Dr. Wang concluded, "Given our strong backlog currently on-hand and sales pipeline, we are reiterating our annual guideline of revenue in the range between $354 million and $356 million and non-GAAP net income in the range between $57 million and $58 million on consolidated basis."

BEIJING, Jan. 15, 2012 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced the departure of Peter Li, CFO, who is leaving the Company due to personal reasons at the expiration of his three-year contract, effective February 1, 2012, and appointment of corporate senior executives of CFO, COO, and Senior VP Business Development.

Ms. Herriet Qu, Financial Controller, is promoted to Chief Financial Officer of Hollysys overseeing the overall corporate financial management. Ms. Qu has been with Company for more than four years with MBA degree from Oklahoma City University. Mr. Jianfeng He, CEO of Beijing Hollysys Group Corporation, is promoted to Chief Operating Officer of Hollysys in charge of Company's daily operation and supply chain management. Mr. He has been with Company for more than 14 years, with PHD in Automation from South China University of Technology. Mr. Baiqing Shao, Vice President of Beijing Hollysys Group Corporation, is promoted to Senior Vice President Business Development of Hollysys in charge of merger and acquisition and new business exploration. Mr. Shao has been with Company for more than eighteen years as one of the founding group of engineers, with Master of Computer Science from the 6th Research Institute of China Electronics Corporation and MBA from Beijing University. Ms. Jennifer Zhang, IR Manager, is promoted to IR Director of Hollysys in charge of investor relations management and corporate communications. Ms. Zhang has been with Company for more than three years, with B.A. in English Literature from Nanjing Agricultural University.

Mr. Peter Li, the departing CFO, commented, "I was blessed to be part of Hollysys' team in its journey of significant growth realization and capital market recognition over the past three years. Hollysys is well-set for the next phase of growth on much improved infrastructure of operational and financial management under the leadership of this team, thanks to the visionary strategy adopted, tough decisions made, and short-term sacrifices endured. I am confident that the team of internally promoted CFO and IR Director will come together to fill in my shoes with the team's support, to enable the Company's growth to the next higher level. I will continuously cheer for every success achieved by Hollysys on the side-line. From bottom of my heart, I will always be part of Hollysys team."

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "Peter has been a great addition to Hollysys team. Under his leadership, we see Hollysys market capitalization growing by multiple times, sell-side analyst coverage expanded dramatically including bulge-bracket banks, and our investor base diversified and improved by leaps and bounds. He is truly a Hollysys story evangelist in the capital market for us. We are grateful to his contributions as Hollysys CFO and extend our best wishes to his new endeavors! Going forward, I will allocate more of my time in communicating with investors and analysts, together with Jennifer and her team. With Herriet, Jianfeng, and Baiqing readily stepping up to their roles, I believe this new team will be capable to grow the Company to the next level of development. "

BEIJING, December 27, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd.(NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it has been awarded three separate contracts by different power corporations in the country, to supply its proprietary industrial Distributed Control Systems (DCS) to 6X660MW ultra-supercritical thermal power generating units in aggregate, with all of the delivery expected to be completed by the end of 2012.

The three DCS contract wins include 2X660MW ultra-supercritical thermal power generating units of Yuejiang Thermal Power Plant constructed by Guangdong Yudean Group Co., Ltd. In Guangdong Province, 2X660MW units of Dianta Thermal Power Plant by Shenhua Shendong Power Company Ltd. in Shaanxi Province, and 2X660MW units of Guizhou Panxian Thermal Power Plant by Guangxi Investment Group in Guizhou Province.

The automation and control system for large-scale thermal power plants is consisted of various ancillary sub-systems besides the core DCS system, such as optimization, desulfurization, Digital Electric Hydraulic Control and etc. It is a common practice for DCS supplier to commission the ancillary sub-systems in automation and control of large-scale thermal power plants due to the nature of DCS system. The company expects to generate a series of follow-on contracts on the three DCS contract wins.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "We are pleased to have established a strong foothold in high-end thermal power automation and control market in China evidenced by a string of DCS contract wins of 660MW power generating units, which have been pretty much dominated by multi-national corporations. We will continue to leverage on our proprietary technology and total solution approach to further penetrate into high-end segments of industrial automation and consolidate low-end to mid-end market through expanded sales and service network in the country, to create value for our shareholders.

BEIJING, Dec. 22, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced that it received a purchase order from China Techenery Co., Ltd. (CTEC), to supply its proprietary non-safety automation and control products to #3 reactor of Yangjiang Nuclear Power Station, valued at approximately USD $1.8 million, or RMB 11.5 million. This is the first batch of a series of purchase orders to be granted to Hollysys for #3 reactor project of Yangjiang Nuclear Power Station.

The Yangjiang nuclear power station in Guangdong province is funded and constructed by a consortium of power corporations led by China Guangdong Nuclear Power Holding Co. (CGNPC), and designed to have six one-gig watt (GW) pressurized water reactors using CGNPC's proprietary CPR-1000 technology.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented, "We are pleased to see the continuous order flow from our nuclear JV for our proprietary nuclear non-safety automation and control products. As the only qualified local automation and control technology provider to nuclear industry in China, Hollysys will leverage the strategic alliance with the largest nuclear builder and operator in China to further penetrate the nuclear automation and control market both in China and internationally, to create value for our shareholders."

BEIJING, Dec. 16, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a contract of approximately US$ 4.2 million or RMB 26.60 million to supply its 200-250km/h high-speed rail ATP equipment to Ministry of Railways of China ("MOR"), which will be finished delivering by December 31, 2011.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the crucial control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are pleased of signing this 200-250km/h high-speed rail ATP contract for the works we've already completed largely. With approximately 17,000 km of high-speed rail tracks currently in construction in China, we are still seeing a huge market potential in high-speed rail signaling market for leading players like Hollysys to realize and capture. Given the whole product suite of our proprietary high-speed rail signaling systems completed and received European Safety Standard certification, Hollysys is poised to explore the vast international railway market to further create value for our shareholders."

First Quarter 2012 Results

BEIJING, Sept. 12, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"),a leading provider of automation and control technologies and applications in China, today provided a further update of purchases under the management stock purchase plans established by several members of the company management, led by the Chairman and CEO.  As of September 12, there have been purchased an aggregate of 1,169,357 shares of Hollysys.

The Company announced on August 15, 2011, that the management persons led by Dr. Changli Wang, Chairman and CEO, had committed an aggregate of $7.5 million for purchases under the management stock purchase plans. The Company subsequently announced that as of September 6, 2011, an aggregate of 725,467 shares had been purchased under the management stock purchase plans.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are pleased to announce the purchase of another 443,890 shares under the management stock purchase plans since last week's update. The continuous purchase by management members is a strong indication of our collective confidence in Hollysys' business fundamentals and growth prospects. During difficult times, we would do anything within our power to support and protect our shareholders' value. We will provide further updates on purchases made under our stock purchase plan."

BEIJING, September 7, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies Ltd. (NASDAQ: HOLI)("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it won a contract to supply its proprietary ground-based high-speed rail signaling system to Wuhan-Xianning high-speed rail line with a designed traveling speed of 200-250 km/h, valued at approximately US$ 3.3 million or RMB 20.9 million. More details. 

BEIJING, Sept. 6, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI ("Hollysys" or the "Company"),a leading provider of automation and control technologies and applications in China, today announced that several members of the company management, lead by the Chairman and CEO, have purchased approximately 725,467 shares of Hollysys as of today.

The Company announced the management stock purchase plan on August 15, 2011, in which the management persons lead by Dr. Changli Wang, the Chairman and CEO, would commit up 5 mto $7.illion US dollars for their purchase.

Dr. Changli Wang, Chairman and CEO of Hollysys, commented: "We are pleased to provide an update on the significant progress of our management stock purchase plan, which demonstrates our confidence in Hollysys' strong business fundamentals and prospects, and our unshakeable commitment to supporting and protecting our shareholders' value during difficult times. We will provide further updates on our stock purchase plan status in the next week or two. As the Chairman and CEO, I am putting more of my efforts in communicating with our investors at this difficult time. I am attending J.P. Morgan's Greater China Factory Automation Corporate Access Days in Hong Kong and Singapore this week, and I am also scheduled to attend Daiwa Green Day 2011 in Singapore on September 30. We are trying our best to create shareholders' value from both business fundamental and investor communication perspectives."

Mr. Peter Li, CFO of Hollysys, stated: "We are scheduled to hold this year's Annual Investor Day on October 20 at our Beijing premises, a 6-hour fully packed event with key management presentation and facility tour, through which we hope to enhance investors' understanding of our team and business. Investors who would like to participate in this event shall contact their respective broker to make a reservation, which is on limited availability basis. We look forward to hosting our investors at our Annual Investor Day!"

A Letter to the Investors

Dear investors,

2011 was a tough year for us, economic recovery in the world has been slower than many people expected, and the Chinese economic growth has been subdued due to a series of tight fiscal and monetary policies to rein in the nonstop inflation, which render the much needed capital a scarce resource for small and medium non state owned enterprises. In spite of all of the difficulties, we are still pleased to report a strong set of results for the financial year 2011. Our revenue grew 51% to $262.8 million; net income increased by 60.2% to $42 million, earnings per share was reported at $0.76 compared with $0.51 EPS for last year. We closed our year with a healthy backlog of $296.4 million, which will help us to deliver a promising result for the year 2012.

Tough time never last, but tough people do.

Hollysys survived a string of unprecedented strikes and passed the severe test with an outstanding score amidst the negative market conditions and external disastrous events during our fiscal year 2011. The first came in to nearly halt the high-speed rail business since February, when the minister of the Ministry of China Rail, Liu Zhijun, who didn't support Hollysys during his tenure, was removed because of criminal activities. Then the new nuclear power plant projects got suspended from March, a rippling effect of the Japanese nuclear power plant radiation leakage accident caused by the earthquake and tsunami. In addition to the two cold waves fallen upon us, Hollysys experienced the most catastrophic plague, which was the short selling pressure and the distrust of the China based companies, because some of them, especially those went public through back door listing, were found lacking of adequate corporate governance and internal controls and discovered or exposed to commit serious frauds in their proclaimed business data such as contracts, revenues, profits even bank account balances. With extraordinary courage and efforts called upon to have overcome the previous pummels, we had to confront another disastrous impact, the Wenzhou high speed rail collision accident, which killed 39 passengers and injured 191 passengers. Even though we concluded that our ATP system worked fine and normally during the accident based on data analysis from various sources not long after the accident, and we announced our conclusion on a timely basis, the tragic event still led to severe panic among our shareholders, and drove our prices to the 52 weeks low.

During these hard times, our colleagues and I did not complain or grumble about these unfair treatment, because we strongly believe that tough time never last but tough people do! There are no great long-lasting companies in the world without experiencing various hardships and perils. Compared with our multinational competitors, most of which have lasted more than a century, the tremendous hardship forced upon us now will stifle our potential vanity, complacency and impetuosity, solidify our business and strengthen our tenacity to strive for our great objective to build an everlasting, healthy and sustainable growing automation company in the world. Facing the uncontrollable difficulties, we calmly analyzed each of them and formulated clear strategies for every business sector.

For our nuclear power plant control business, which has improved our company image and raised our core competence dramatically by achieving the highest technical requirements and paramount quality specifications, and greatly inflated our shareholders expectations, we realized that the business has much more an emblematic meaning than an economical one to us and we have remained sober from the early stage. We calculated clearly, instead of speculating boldly, that our subsidiary joint venture company will get 4 to 6 projects each year at most for the next 10 to 15 years, under the current China's ambitious nuclear power development and construction plan. Although the nuclear power control business looks quite lucrative on project basis, it is very hard to become a powerful engine to drive Hollysys' perpetual growth at a desired pace due to its limited financial impact and earning capability. Understanding the scenario, Hollysys made the strategic decision on nuclear power control business sector, that we will deploy only adequate resources after our system platform is complete to guarantee the required system high quality and supply our JV to generate decent profit, and ensure our JV to continuously enjoy a leading position in this field in China.

Notwithstanding the ups and downs of our rail way automation business, including signaling system and SCADA system for the high-speed rail and subway segments, our judgment is that this will be a profitable and sustainable business with high entry barrier requiring critical safety concerns, and the market is quite lumpy and not huge enough to attract too many competitors. We understand this business very clearly that it is very difficult for us to forecast its financial figure on quarterly even annual bases. Considering the mass transportation requirement in China and the world, especially under the increasing pressure for environmental protection and energy conservation, we believe that railway transportation will grow for a very long time. Thanks to the Ministry of Rail, who awarded us this golden opportunity to design and supply the 250 km/h and 350km/h high-speed rail signaling system, and assisted us in setting up the collaborative relationship with Hitachi for the 250km/h on-board ATP system and with Ansaldo for the 350 km/h telecommunication based train control systems, we have grown from a new entrant to a very competitive signaling system provider within a short time span of 5 years, which would have taken the multinational competitors at least 10 years . Being able to participate in drawing the CTCS standard and having delivered successfully quite amount of signaling systems, which have experienced various severe application environments with solid quality and great functionalities, is an invaluable experience to understand the genuine requirement and specifications of high- speed rail signaling system, which would be impossible to grasp without hands-on practices. Through working and providing CTCS standard compliant signaling systems to MOR, we obtained a rare opportunity to learn high-speed rail signaling technologies and mature experiences and accumulate strong track records through which we successfully cultivated and developed our own proprietary capability from both technology and implementation perspective to support our strategic goal for this business going forward.

With our clear understanding of the CTCS, China Transportation Control System standards, and invaluable experiences accumulated from this round of China's high-speed rail build-out, we have finished all of the R&D investment and are qualified to fulfill all of the projects for the Ministry of China Rail, and could have temporarily boosted our earnings by diminished R&D spending. However, Hollysys has always been watching the big picture of this business. In order to establish long term distinguished competitive advantages, to be able to explore the rail market outside of China, and to exploit the full potential of our signaling platforms in metro systems, we have to redesign the whole set of signal systems totally on our own proprietary technologies and get fully certified by the prestigious European Organizations for the SIL 4 certification (Safety Level IV). It is a paramount of investment in capital and human resources for a fledgling business in Hollysys. Through fastidious analysis of all safety requirements and comparison of the technical advantages of the mature systems, and leveraging on our core technologies gained from our industrial control system design and development, our engineers worked around the clock for the past one and half years, and finished most of the prototypes of most of the platforms, and near the finish line to get all certified by the most prestigious TUV. The signaling system set includes the onboard ATP system with SIL 4 for high-speed rail and subway used to protect the train from over speed and accidents, the ground based TCC train control system with SIL 4 for ground safety control of trains, CBI computer based interlocking system with SIL 4 for both high speed rail and subway, ATS automatic train supervision system with SIL 2 for metro ATC systems, and some other auxiliary interfacing products. Based on our own technologies, we can customize our system platforms to meet every level of requirements from conventional rail signaling systems to the most state-of-the-art high-speed rail applications, not only for Chinese market but also for international market. Our current schedule is that most of the platform will be certified by the calendar 2011 year-end, and ATP for metro systems with ATO (automatic Train Operation) will be certified by the end of calendar 2012. Given the series negative events surrounding China's high-speed rail build-out, it is hard for us to make any prognosis on how quickly the China rail construction will recover, and all we can do is to make ourselves ready in all aspects in order to capture the opportunity when it does arise. Being armed with the full signaling product offerings, we are more confident and excited than ever to aggressively compete in the global arena of rail signaling market.

In subway SCADA business, we made a conscientious decision of concentrating on the quality customers and higher margin projects prior to our proprietary subway signaling system coming out to the market. The application of SCADA for subway operation is not safety and operation critical and there is a trend that price-cutting is the only competitive weapon wielded by our competitors. With our full suite of subway signaling products certified by European safety standard, our SCADA competitive advantages will be greatly enhanced by bundling it together with our signaling system, not only for the market in China, but the international market at large.

Innovation to Drive Long Term Sustainable Growth for the Industrial Automation Business

Since its inception, Hollysys has been very lucky, but we never depend on good luck. Every few months or on some special situations, my colleagues and I sit down calmly to evaluate our business environments and opportunities through comprehensive SWOT analysis, so as to make judicious decisions.

At the time when our high-speed rail business was showing and regarded as the most promising prospect, and our capabilities are ready for full fledged fly, we made the very tranquil judgment that this business would be a good long term business, but with certain level of uncertainties and lumpiness in nature due to customer concentration, Hollysys cannot afford soly depending on such a uncontrollable business to maintain a sustainable and steady growth over the longer term. Through a circumventing examination, we realized that our incumbent industrial automation business had much greater growth potential which we were far from fully exploiting it.

First of all, our mindset needs to be changed in order to perceive the new scenario of this traditional business, which means to re-define Hollysys industrial control business from a DCS system provider to a total system solution provider.

The demographic structure change and aging process acceleration will transform every aspect of our life in China. The shortage of labor force and the fast increasing labor cost will force most of the manufacturing factories to utilize automation products and systems to replace manual workers, which will create unfathomable additional growing opportunities for the automation companies and we will strive to gain a substantial part of it.

The second driving force derived from the fundamental transformation of business environment predicted by C. K. Prahalad and M.S. Krishnan in their book "the New Age of Innovation". According to Prahalad and Krishnan, the transformation is built on two basic pillars: namely N=1 and R=G BY N=1, it means that value is based on unique personalized experiences of consumers and firms have to learn to focus on one consumer and his/her experience at a time even if they serve 100 million consumers. R=G defines that no firm is big enough in scope and size to satisfy the experiences of one consumer at a time, and that all firms will access resources from a wide variety of other big and small firms, focusing on access of global resources instead of owning them. This mega trend is fully reflected in our industrial automation market. Firstly, the technological progress in all the measurement instrumentations and equipments, which become intelligent with sophisticated communication protocols rather than the 4-20mA physical signals, makes most of the field maintenance oriented engineers unable to handle, and it is far from economical for the factories to maintain these engineering staffs due to the dramatic increase in salaries and other labor costs. Therefore, more and more of our customers incline to let the system providers to become the MAV main automation vendor. We refer to this integrated solution as one-stop shop. Secondly, fierce competition between the manufacturing enterprises forces them to enhance their productivity and product quality constantly, and this can be easily realized through advanced automation recipes and algorithms. To obtain these objectives needs the systems provider to fully understand the manufacturing process, which requires the closer collaboration between the customer and the vendor. This trend will transform the conventional purchasing mode, where all systems and equipments are separately purchased through individual bidding processes, to a steady and long term collaboration between customers and qualified system vendors. This new relationship between customer and automation system provider based on long term collaboration is referred to as back room service provider.

Based on this point of view, Hollysys began to execute a new growth strategy from July of 2010. The new strategy comprises mainly three categories of actions: firstly, we enlarge the sales network all over China in three years so as to cover most the industrial areas to guarantee full access to every incumbent and potential customer. We refer to this strategy as farming the customer field, where you can expect your yield depending on your investment and labor, instead of sporadic hunting for projects, where you may succeed to get the prey only if you are very skillful and having some good luck. Secondly, we spend significant investments to enhance our system functions both vertically and horizontally. Vertical integration means that we will supply each customer with full spectrum of products from the DCS control to process management software packages such as AMS asset management system, MES manufacturing execution systems, APC advanced process control systems, OTS simulation and on job training system, and dedicated solutions for power, chemical, cement, iron and steel, pulp and paper process with expertise. Horizontal extension is to expand our products to include DCS, PLC, and proprietary safety protection systems and various instrumentation equipments integrated from our OEM resources or some third party vendors. Thirdly, we have been inviting prestigious experts in every application field to join Hollysys so as to help our customers improve their manufacturing process.

The new growth strategy for industrial automation has delivered astonishing results of more than 35% revenue growth year-over-year, which is much more than we expected, considering the DCS markets growth rate has been no higher than 12% in the past few years. More importantly, this stellar performance provides our colleagues with great confidence in our new set strategy, through which they see a high annual growth rate of 25% to 30% possible and plausible for industrial automation for the foreseeable future. Through our new growth strategy and strong execution, our goal is to enable a traditional low-growth business line rejuvenated to become a fully charged engine to drive our business growth forward.

M&A to Accelerate International Development

There has been a continuous pressure from our investors that Hollysys was too meticulous in M&A activities to utilize the capital to grow the business faster. Having seen too many M&A cases ended up with sad and vacant results instead of promising and promised growth, therefore we have been controlling the impetus to rush into any M&A just for the ego and vanity of the management team. Nevertheless, with perfect synergy in business operation and congruent match in cultures, we see the Concord acquisition will tremendously accelerate Hollysys' international business expansion and development.

Having a strong belief that the emerging markets will constitute a significant part of our business where potential customers are exuberant without local competitors, Hollysys has been trying to exploring the South and East Asian automation market for the past three years. It was quite disappointing to have realized that we didn't achieve our desired goal at a satisfactory pace, due to lacking an effective team capable addressing vastly different markets with cultural and linguistic differences and inability to establish a trustworthy brand in a short time. As we were groping around in the darkness and anxiety, Concord came to our eyesight. Established in 1983, Concord is an engineering company carrying out electrical systems and instrumentation installation and testing work in industrial sectors such as power plant, chemical process, water processing and semiconductor manufacturing. In the past five years, Concord has successfully entered a promising business segment, to install and test electric power and signal systems in metro transportation and high-speed rail industries. Being a grass-root enterprise without any prominent background, very much like Hollysys in this aspect, the founders of Concord, the Chim brothers, have known it well that they have no privileges and no one to rely on to win business opportunities except delivering outstanding engineering result with the lowest cost on consistent basis. Dreaming to build a long-term sustainable enterprise, they have been persistently improving the project management efficiency, the quality of service, and dedicating to a harmonious and mutual beneficial relationship between colleagues and customers with integrity and value-adding. Leveraging on its strong track record and reputation, Concord has become one of the most competitive engineering companies in ASEAN countries and Middle East, working as a sub-contractor with the most established EPCs in the region. Concord management was well aware that lacking of proprietary technology and products in its addressable market verticals prevents it from elevating its business to the next higher level. Both Concord and Hollysys see the perfect match of Hollysys' full product offerings in industrial automation and rail signaling markets combined with Concord's long-time established team and customer base and are highly confident in achieving the desired synergetic advantages and establishing Hollysys' foothold in international market, which in turn will create sustainable value for our customers and shareholders.

Better Value for Money Is Always Part of Our Competitive Edge

According to the classical competitive advantage theory, differentiation and low cost are two effective weapons to maintain competitive edge over competitors. Although Hollysys has been consistently enhancing our differentiation level by constantly improving our product performances and fostering customer affinities by our tailored solutions and satisfactory services, we have never stopped the endeavor to streamline our R&D, manufacturing, procurement, project execution processes, to sift out unnecessary applications and redundant procedures so as to drive the overall cost 6% to 8% down every year, even though remuneration and other costs have been increasing consecutively every year. Dr. He Jianfeng, the China's business group president known as the Czar in Hollysys for his tough execution, has been taking charge of this responsibility since the beginning of our fiscal 2011. With our competitive engineer labor cost at 70% lower than our multinational competitors, our persistently improved operation, and our reliable and mature system platforms proven in tens of thousands projects in various harsh applications in China, we have no doubt in our sustainable and profitable growth not only in Chinese market but also in the world.

Our Distinguished Team Ensures Solid Execution of Our Growth Strategies

It is my great pleasure to share with you that what I have enjoyed most during all these 18 years of growing our innovative enterprise is being able to work with my team, who shares the same dream with me and relieves me from all of the distress and operational managerial chores in different business operations so that I can have the time and mental tranquility to keep watching the mega trends pertinent to our business environment, and technology development in our field to prevent any big mistaken decisions made at strategic level. In 2010, we reorganized our business and constituted Hollysys Group in China (HGC), managing all our business activities in China. The group is mainly consisted of strategic executive committee (SEC), R&D center, manufacturing plant, Beijing Hollysys Co. Ltd (BHC) engaging in high-speed rail and subway businesses, Hangzhou Hollysys Co. Ltd (HHC) engaging in process control (DCS) and developing our sales network in China, Beijing Hollysys Automation and Driver Co. Ltd (BHAD) dedicated to factory automation (PLC) business, and Xian Hollysys Co Ltd (XHC) for R&D and exploring new automation opportunities. Our SEC is consisted of the following members of our key business executives.

Wang Changli, 48, PhD in Automation, 18 years with Hollysys, Chairman of HGC, Chairman and CEO of Hollysys Automation Technologies Ltd.;

He Jianfeng, 49, PhD in Automation, CEO of HGC, 14 years with Hollysys, previously CEO of HHC and BHC in change of business execution and overhauling corporate internal functions and processes;

Peter Li, 47, Master in Educational Administration with C.G.A. professional accounting designation, 3 years with Hollysys, CFO of Hollysys Automation Technologies Co. Ltd.;

Xu Yue, 50, Master in Computer Science, CEO of BHC, 11 years with Hollysys, in charge of high-speed rail and subway businesses, instrumental in building a top-notch team for high-speed rail business from 30 to 300 people in 6 years, leading Hollysys in the process to have emerged as one of the leading players in signaling business in China;

Shi Hongyuan, 42, Master in Precision Instrumentation, 14 years with Hollysys, CEO of HHC from 2010, previously in charge of R&D;

Shao Baiqing, 43, Master in Computing and Automation, 18 years with Hollysys, Vice President of HGB and CEO of XHC, in charge of corporate branding, business development and Administration of XHC, previously in charge of R&D, production, power plant automation, Information systems, and HR;

Shi Bo, 41, B.Sc. in Computer Science, 18 years with Hollysys, in charge of R&D;

Zhou Yuanna, 48, MBA, B.Sc. in Automation and Control, 13 years with Hollysys, COO of HHC, in charge of DCS sales and network building, being instrumental in driving Hollysys Industrial automation business growth;

Xu Changrong, 41, PhD in Thermal power and Instrumentation, 14 years with Hollysys, CEO of BHAD, in charge of growing Hollysys' PLC business to one of its growth engines;

Qu Xiaorong, 41, Master in Finance and Accounting, 5 years with Hollysys, Chief Finance Controller of HGB, in charge of corporate finance and accounting.

Most of our executives have shared happiness and hardships with me for more than 10 years and they earned their position by merits and capabilities. It is our shared ambition to develop a sustainably growing automation company in the world, to create genuine value for our customers, shareholders and colleagues, and to compete with the century old multinationals. Although we have successfully accomplished many outstanding projects such as 1000 MW nuclear power control systems, high-speed rail signal systems and sophisticated control systems in various industries through our consistent innovative work, we have never shown complacency, because we are well aware that we are still very immature compared with our competitors. I am grateful and deeply indebted to their integrity and loyalty to our great mission, and they sacrificed their leisure time because of the tremendous work load, not to mention that they could have earned much more money if they had worked for the multinational companies.

It is out of our capability to predict the economical conditions and stock market fluctuations in the future, however, based on the tenacious determination of our people to consistently improve our competitive edges through effective innovation and efficient operations, to prepare to fight any unexpected difficulties and to win big in favorable environment, we are confident that our investors are going to be greatly rewarded for their sagacious choice and their faith in Hollysys. I am writing this letter with my heart, trying to clarify some of your concerns and to share my considerations and my feelings with you, wishing to improve the mutual understanding and to enhance transparency of our decision making process.

I would like to end this letter with an old saying that if winter comes, can Spring be far behind?

With Best Wishes,

Wang Changli

Chairman and CEO

Hollysys Automation Technologies co. Ltd

Q4 Financial Highlights

• Quarterly revenues of $71.9 million, representing an increase of 27.5% compared to $56.4 million year-over-year
• Gross margin at 28.8%, as compared to 33.9% year-over-year, and 40.3% quarter-over-quarter
• Non-GAAP net income attributable to Hollysys of $7.0 million, as compared to $6.3 million and a 11.9% increase year-over-year
• $7.4 million cash generated from operations for the quarter, as compared to $3.9 million used quarter-over-quarter and $1.8 million provided year-over-year
• Non-GAAP Diluted EPS at $0.13 reported for the quarter, as compared to $0.11 year-over-year
• Record-high backlog of $296.4 million as of June 30, 2011, a 17.2% increase compared to $252.9 million year-over-year
• Quarterly DSO of 129 days, as compared to 116 days year-over-year

Fiscal Year Financial Highlights

• Revenues of $262.8 million, representing an increase of 51.0% compared to $174.1 million year-over-year
• Gross margin at 34.7%, as compared to 34.6% year-over-year.
• Non-GAAP net income attributable to Hollysys of $42.0 million, as compared to $26.2 million and a 60.2% increase year-over-year
• $1.8 million cash used in operations for the fiscal year 2011; cash and cash equivalents of $90.7 million as of the year end.
• Non-GAAP Diluted EPS at $0.76 reported for the fiscal year, as compared to $0.51 year-over-year
• DSO of 124 days, as compared to 140 days year-over-year.
• Inventory turnover of 58 days, versus 73 days year-over-year.

Dr. Wang continued: "We've noticed the short interest on HOLI has reached historical high in the past few months. In this context, the Company believes that an important way to protect shareholder value is to limit short sellers' ability to borrow stocks and shareholders can contribute by reviewing whether their custodians or brokers are lending their shares to third parties. It's a common practice for brokers or custodians to lend out stocks to third parties for a fee, since investors may have approved this in a blanket agreement they signed when opening their accounts. This activity can be extremely profitable for brokers or custodians, not to mention short-sellers, but may go against the interest of the holders of our shares. We call on our shareholders who have been supportive to the Company, and have unfairly suffered, to be vigilant and make sure that they are in full control of the economic benefits of their ownership in our Company. It is prudent for our shareholders to issue an instruction to their respective brokers or custodians not to lend out their shares to third party, or alternatively, request a stock certificate be issued and be delivered to them so that shareholders are in complete control of shares of stock held."

Outlook for FY 2012

Dr. Wang concluded, "Given our strong backlog currently on-hand and sales pipeline envisioned so far, we project our revenue in the range between US $354 million and US $356 million and non-GAAP net income in the range between $57 million and $58 million on consolidated basis including newly closed acquisition, which is based on management best estimate of our current market and business conditions at this point in time, with certain level of conservatism in mind. The management would also like to maintain our earnings per share at or above one US dollar when it comes to any potential dilution effects caused by financing, incentive share scheme, or acquisition during the year."

BEIJING, July 25, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (Nasdaq:HOLI - News) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, confirmed today that its high-speed rail (HSR) signaling ATPs functioned normally during last weekend's fatal accident. On the evening of July 23rd, a severe fatal accident occurred on Wen-Yong Dedicated Passenger Line (DPL) at Wenzhou area, involving D301 and D3115 trains, both with Hollysys HSR signaling ATPs installed. According to the analysis of data from multiple sources, the ATPs on the two trains provided by Hollysys functioned normally and well, and free of any malfunctions prior to the crash. MOR will announce its findings of investigation on the cause of the accident upon completion of the investigation.

Rodman and Renshaw on HOLI         7/13/2011

Hollysys Closes Concord Acquisition; Raising PT to $14.

Hollysys Automation Technologies, Ltd (HOLI) announced the closing of the previously disclosed acquisition of Concord Corporation Pte Ltd, a Singapore-headquartered provider of electrification related services, for a total consideration of $43.2 million consisting of $33.5 million in cash and $9.7 million in stock (equivalent to approximately 1 million shares of HOLI stock). We consider this to be a tuck-in acquisition that should yield significant product and geographical cross selling opportunities for both companies. The acquisition is immediately accretive to earnings and is expected to contribute approximately $10.0 million and $11.5 million to FY12 and FY13 earnings, equivalent to, respectively, $0.18 and $0.20 per fully diluted share based on 56.1 million and 56.8 million shares outstanding. Including the impact from the Concord acquisition, we now expect FY12 non-GAAP net income to come in at $60.1 million or $1.07 per fully diluted share. We reiterate our Market Outperform rating, raising our price target from $12 to $14, based on the shares attaining a P/E multiple of 13x our new FD EPS estimate of $1.07.

Discussion

• Concord Corporation Overview: Founded in 1983, Concord is a group of four companies located in Singapore, Malaysia and Dubai. Working with multinational corporations such as Mitsubishi (8058, Not Rated), Alstrom (ALO, Not Rated), Bombardier (BBD/A, Not Rated), Siemens (SI, Not Rated), Areva (AREVA, Not Rated), and ABB (ABB, Not Rated), Concord provides design engineering, procurement, project management, installation, test and commissioning, and maintenance services for electrical and instrumentation projects in power generation and distribution, railway transportation, pharmaceuticals, petrochemicals, and other industries to clients located in South East Asia (Singapore, Malaysia, Vietnam) and the Middle East (Dubai and Saudi Arabia). Notable Concord projects include: Red and Green lines of Dubai Metro LRT in United Arab Emirates, Makkah-Holy Sites Rail Line in Kingdom of Saudi Arabia, and Circle Line Stage I, II, IV, V & Kim Chuan Depot and North East Line of MRT System in Singapore.
• Deal Valuation Hollysys management expects the acquisition to add approximately $10.0 million to FY12 earnings and $11.5 million to FY13 earnings, implying a forward P/E multiple of 4.3x and 3.8x projected earnings. Although we would like to see additional disclosure on Concord’s historical financial performance and existing assets and liabilities, we believe Hollysys has paid a reasonable acquisition multiple for Concord Corporation.
  
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This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

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BEIJING, July 12, 2011 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI)("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced that it has closed on its previously announced acquisition of Concord Corporation Pte Ltd., and its group of companies (CCPL), a Singapore headquartered electrification related service provider to rail and industrial industrials in South-East Asia and the Middle East.

The total payment for the acquisition is in combination of approximately US$ 33.5 million cash and approximately 1 million shares of Hollysys common stock, equivalent to approximately US$43.2 million. The newly issued shares to CCPL shareholders will have a three-year lock-up period. The CCPL management is also entitled to approximately 0.75 million shares of Hollysys common stock in each of the next two years, if Concord's US-GAAP audited net income equals or exceeds US $ 10 million and US$ 11.5 million for Hollysys' fiscal year of 2012 and 2013 respectively.

The agreement is expected to yield significant cross selling/cross of our existing product lines in rail and industrial segments to fast growing South-East Asia and the Middle East market.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are very pleased to have closed the acquisition of CCPL. The seasoned and high-caliber management team will remain intact, and the daily operation of CCPL will not be impacted by the acquisition transaction. CCPL has demonstrated its penetration and execution capability in its years of strong track record and will continue to expand its footprints inSoutheast Asia and Middle East with Hollysys as its backbone supporter."

Mr. Chim Swee Yong, Group Executive Chairman of CCPL, said: "The response from our clients and employees is overwhelmingly positive, we are very happy and proud to be part of Hollysys, the leading provider of automation and control technologies and application in China. With Hollysys' brand name and R&D, customization and production capability, we are well set to grow our business to the next higher level."

Rodman and Renshaw on HOLI                              6/9/2011

HOLI: Upgrading to Market Outperform Based on Valuation

We are upgrading our rating on the shares of Hollysys Automation Technologies Ltd. (HOLI) from Market Perform to Market Outperform based on valuation. We believe the recent market-related weakness in the shares presents an excellent entry point for investors to begin building positions in the stock. Trading at 10x and 9x our FY11 and FY12 EPS forecasts, we believe HOLI is now undervalued. As a leading provider of integrated automation and controls solutions for industrial clients, high speed railways, urban transit networks and nuclear power plants with a rich portfolio of product offerings, a well-known brand and a significant share of China’s industrial automation, rail signaling and nuclear power automation and controls market and one of only two qualified suppliers in China of high speed rail signaling systems for 300-350 km/hr high speed rail segments and one of the five approved providers for the 200-250 km/hr segment, Hollysys should continue to benefit from the ongoing high-speed railway and nuclear power build-out in China and industrial production and process automation. We also believe Hollysys strong commitment to R&D and new product development as evidenced by 214 patents and computer software copyrights held by the company as of the end of FY10 will help the company to maintain competitiveness in a rapidly evolving market ensuring sustainable growth and profitability. We are, consequently, upgrading our rating to Market Outperform and are establishing a price target of $12, based on the shares attaining a conservative multiple of 13x our fully diluted FY12 EPS estimate of $0.90 excluding the impact of pending Concord Corporation acquisition.

Investment Thesis Highlights We believe Hollysys is one of the most attractive investment opportunities in the U.S.-listed Chinese universe. Our bullish stand on the stock is supported by the company’s notable achievements in industrial, subway/high speed railway and nuclear automation and controls markets. These include: (1) 10.6% market share in China’s industrial automation market based on the historical installed base (2) 70% market share of China’s 200-250 km/hr Automatic Train Protection (ATP) market (3) the largest SCADA subway automation systems supplier in China (4) 214 patents and computer software copyrights as of the end of FY10 (5) joint venture with China Guangdong Nuclear Power Company (CGNPC), one of the three government approved nuclear operators in China, to supply nuclear automation control systems to CGNPC built reactors - equivalent to approximately 50% of all currently planned reactors in China (6) $280.9 million order backlog as of the end of 3Q11.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

2009 20F

We believe our working capital is sufficient to meet our present requirements. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In the long-term, we intend to rely primarily on cash flow from operations and additional borrowings from banks to meet our anticipated cash needs.

Our long-term liquidity needs will relate primarily to working capital to pay our suppliers, and third-party manufacturers, as well as any increases in manufacturing capacity or acquisitions of third party businesses that we may seek in the future. We expect to meet these requirements primarily through our current cash holdings, revolving short-term bank borrowings, as well as our cash flow from operations. We currently do not have any plan to incur significant capital expenditures in 2011 and for the foreseeable future beyond 2011.

BEIJING, May 20, 2011 /PRNewswire-Asia/ -- Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, announced today that it signed a stock purchase agreement (SPA) to acquire 100% ownership of Concord Corporation Pte Ltd. and its group of companies (CCPL), a Singapore headquartered electrification related service provider to rail and industrial industrials in South-East Asia and the Middle East. The total consideration for the acquisition was a combination of cash and stock, equivalent to US$43.2 million approximately, with a two-year incentive share program for CCPL management team if CCPL meets certain performance targets.

Pursuant to the stock purchase agreement, Hollysys shall pay/issue a fully refundable deposit of 20.75 million Singaporean dollars at SPA signing, and 20.75 million Singaporean dollars and approximately 1 million shares of Hollysys common stock at the closing. The CCPL management is entitled to approximately 0.75 million shares of Hollysys common stock in each of the next two years, if Concord's US-GAAP audited net income equals or exceeds US $ 10 million and US$ 11.5 million for Hollysys' fiscal year of 2012 and 2013 respectively.

CCPL provides complete electrical solution with end to end capabilities in design, engineering, procurement, project management, construction & commissioning, and maintenance to a wide array of industries, including rail, power plants, semiconductors, pharmaceuticals, petrochemicals, etc. As an established regional electrification service provider in the rail industry, CCPL has successfully commissioned signaling, power distribution, automatic train control, communication, power rail, and other related electrical engineering and installation works for Red and Green lines of Dubai Metro LRT in United Arab Emirates, Makkah-Holy Sites Rail Line in Kingdom of Saudi Arabia, and Circle Line Stage I, II, IV, V & Kim Chuan Depot and North East Line of MRT System in Singapore.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are very pleased with this highly accretive and complementary acquisition of CCPL group of companies, which provides Hollysys with a readily available channel to cross sell our existing product lines in rail and industrial segments to fast growing South-East Asia and the Middle East market. We are also excited to be able to retain a team of seasoned and high-caliber professionals through this acquisition, who will form the foundation of our international team to greatly enhance Hollysys capability to tackle the international market. Hollysys will leverage its strong proprietary technology and its capabilities accumulated from its leading positions in China's rail and industrial segments to enter and penetrate into the international market, through both organic growth and accretive acquisitions to maximize our shareholder value."

Mr. Chim Swee Yong, Group Executive Chairman of CCPL, commented: "We are honored to be able to join and team up with Hollysys, a well-established proprietary technology and product provider in rail and industrial industries in China. We are seeing great opportunities lying ahead of us, given the fast growth in rail, oil and gas, and power industries in our addressable market in South-East Asia and the Middle East. With more than 20 years strong track record, we believe the combination of our existing customer base and complete electrification solution capabilities and Hollysys' proprietary technology and products would be of great benefit to capturing the growth opportunities, both in the current addressable geographical regions and other international markets at large."

Mr. Peter Li, CFO of Hollysys, commented: "This acquisition is our first meaningful M&A since we were listed on NASDAQ. We are very pleased to have entered SPA to acquire such a successful platform together with a team of professionals with backgrounds from GE Industrial, Thales Transportation and Bombardier Transportation, at a highly accretive valuation to its forward earnings. CCPL meets all of our acquisition criteria, which we laid out as our corporate acquisition strategy, of accretion, complement, and ease of integration. We expect this acquisition will be closed around July 1, 2011, from when CCPL revenue and income would be fully consolidated and reported under Hollysys. With the capital needs for more potential acquisitions, Hollysys will seek to dual list itself on the Hong Kong Stock Exchange while maintaining NASDAQ listing as its primary listing board, because we believe that Hong Kong dual listing will provide us with a valuable diversified investor base, comparable peers, and stronger analyst coverage interests, to unlock our intrinsic value currently ignored or undiscovered, for maximizing our shareholder value."

Rodman and Renshaw on HOLI                         5/11/2011

HOLI 3Q11 Update

Hollysys Automation Technologies, Inc. (HOLI) posted 3Q11 results that were above the Street and our expectations. Revenues came in at $55.8 million, above the consensus of $48.6 million and our estimate of $46.5 million. Fully diluted EPS of $0.17 exceeded both the consensus of $0.12 and our 3Q11 forecast of $0.11. Management revised up the previously provided FY11 revenue and net income guidance from $243-$247 million and $39-$41 million or $0.71-$0.75 per fully diluted share to $255-$259 million and $41-$42 million equivalent to $0.75 - $0.77 per fully diluted share, respectively. The company reported strong year over year growth in all segments but, sequentially, this was a weaker quarter due to the timing of Chinese New Year. Backlog declined QoQ for the first time since 1Q10 from $288.5 million at the end of 2Q11 to $280.9 million at the end of 3Q11 on faster delivery on backlog and absence of sizable new orders in the subway segment. Trading at 14x and 12x times our FY11 and FY12 fully diluted EPS estimates of $0.78 and $0.90 compared to 19x and 15x multiples for automation equipment peer group and 16x and 13x multiples for railway equipment peer group, we believe HOLI remains a touch expensive. We are maintaining our valuation-driven Market Perform rating.

Segment Analysis: Industrial Automation and Controls sales increased 51.8% YoY to $24.9 million representing 44.7% of the total revenues in 3Q11. Rail Signaling and Controls segment contributed 26.0% of revenues for the quarter, growing 141.7% YoY to $14.5 million. Subway System Integration and Nuclear Plant Controls revenues were up 47.5% YoY and 33.3% YoY, respectively (Exhibit 1: Quarterly Revenues by Segment).

As of the end of 3Q11, the company had a total of $280.9 million in backlog orders consisting of $91.5 million in Industrial Automation orders, $102.9 million in Rail Signaling and Controls orders (excluding the recently announced $24.3 million contract announced in April 2011), $71.7 million in Subway Systems orders and $14.8 million in Nuclear Plant Controls orders (Exhibit 2: Quarterly Backlog by Segment). Subway segment backlog continued to decline sequentially on weak order flow and regression towards more normalized backlog levels.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

First Quarter Results:

• Quarterly revenues of $55.8 million, representing an increase of 67.2% compared to $33.4 million year-over-year
• Gross margin at 40.3%, as compared to 37.2% year-over-year, and 36.0% quarter-over-quarter
• Non-GAAP net income attributable to Hollysys of $9.6 million, as compared to $5.2 million and a 83.6% increase year-over-year
• Diluted EPS at $0.17 reported for the quarter, as compared to $0.10 year-over-year
• Backlog of $280.9 million as of March 31, 2011, a 15.9% increase compared to $242.3 million year-over-year
• Quarterly DSO of 156 days, as compared to 192 days year-over-year

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "We are pleased to report another stellar quarter with solid financial and operational performance. I would like to take this opportunity to discuss some of the key events that took place during this quarter."

Dr. Wang concluded, "Given our strong financial performance to date and backlog currently on-hand, we are again revising up our fiscal 2011 revenues and net income guidance from $243M to $247M and $39 million to $41 million to $255 million to $259 million and $41 million to 42 million respectively. It is worth noting that this is the second time in a row that management has to revise up the previously provided fiscal year guidance. The management has taken note of recent pressure on Company's stock price due to market conditions caused by misperception and firmly believes that our stock price will eventually reflect our intrinsic value over the longer term. Hollysys will continue to leverage on its core growth pillar foundations of its proprietary technology and strategic alliance with leading organization to penetrate and increase its market share in respective high-growth end markets. At the right conditions, Hollysys will also rely on M&A to accelerate its growth pace and penetrate into the new market, to create long-term value for our shareholders."

New High Speed Railway Contract to Lift FY11 Earnings.

Hollysys Automation Technologies, Ltd. (HOLI) announced signing of a new $24.3 million or RMB 159.1 million contract with various local bureaus of PRC Ministry of Railways to supply Automatic Train Protection (ATP) systems for 200-250 km/hr. high speed rail lines. The company expects to complete delivery on the contract by the end of May 2011 or during 4Q11. Consequently, we are increasing our 4Q11 revenue, adjusted net income and EPS projections for the 4Q11 from $65.1 million and $9.2 million or $0.17 per fully diluted share to $83.4 million and $12.1 million or $0.22 per fully diluted share, respectively. We now expect full FY11 revenues and adjusted net income to come in at $265.1 million and $43.3 million or $0.79 per fully diluted share. Our current estimates exceed the company’s previously issued revenue and net income guidance of $243-$247 million and $39-$41 million. We do not except the new contract to have a significant impact on the backlog (at $288.5 million at the end of 2Q11) due to the imminent delivery.

The new contract comes on the heels of the recently announced Ministry of Railway budget for the 2011-2015 period (12^th Five Year Plan). China plans to spend RMB 2.8 trillion (approximately $ 431 billion) in the next five years on railway construction including high-speed rail. While substantial, the amount is significantly below the previously floated government estimate of RMB 3.5 trillion (approximately $538 billion). Considering the announced railway budget and the company’s railway signaling and controls segment order backlog of $112.3 million at the end of 2Q11,we expect strong near-term growth in high speed railway signaling and controls systems to flatten out in the 2nd half of the 12th Five Year Plan.

We maintain our valuation-driven Market Perform rating. HOLI is currently trading at 15x and 14x our FY11 and FY12 fully diluted EPS estimates of $0.79 and $0.84. We believe HOLI shares to be fully valued at this level and recommend investors await a better entrance point or new catalysts before adding shares or taking a new position.

Risks

(1) Scale-back in government infrastructure spending (2) Delay in the development of proprietary subway signaling and nuclear island automation products (3) Project delays (4) Slowdown in new orders in the subway segment (5) Competition (6) Slow accounts receivable turnover (7) Backlog risk (8) Customer retention (9) End of government R&D subsidies.

Notice Regarding Privacy and Confidentiality:.

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Rodman and Renshaw on HOLI     4/19/2011

New High Speed Railway Contract to Lift FY11 Earnings.

Hollysys Automation Technologies, Ltd. (HOLI) announced signing of a new $24.3 million or RMB 159.1 million contract with various local bureaus of PRC Ministry of Railways to supply Automatic Train Protection (ATP) systems for 200-250 km/hr. high speed rail lines. The company expects to complete delivery on the contract by the end of May 2011 or during 4Q11. Consequently, we are increasing our 4Q11 revenue, adjusted net income and EPS projections for the 4Q11 from $65.1 million and $9.2 million or $0.17 per fully diluted share to $83.4 million and $12.1 million or $0.22 per fully diluted share, respectively. We now expect full FY11 revenues and adjusted net income to come in at $265.1 million and $43.3 million or $0.79 per fully diluted share. Our current estimates exceed the company’s previously issued revenue and net income guidance of $243-$247 million and $39-$41 million. We do not except the new contract to have a significant impact on the backlog (at $288.5 million at the end of 2Q11) due to the imminent delivery.

The new contract comes on the heels of the recently announced Ministry of Railway budget for the 2011-2015 period (12^th Five Year Plan). China plans to spend RMB 2.8 trillion (approximately $ 431 billion) in the next five years on railway construction including high-speed rail. While substantial, the amount is significantly below the previously floated government estimate of RMB 3.5 trillion (approximately $538 billion). Considering the announced railway budget and the company’s railway signaling and controls segment order backlog of $112.3 million at the end of 2Q11,we expect strong near-term growth in high speed railway signaling and controls systems to flatten out in the 2nd half of the 12th Five Year Plan.

We maintain our valuation-driven Market Perform rating. HOLI is currently trading at 15x and 14x our FY11 and FY12 fully diluted EPS estimates of $0.79 and $0.84. We believe HOLI shares to be fully valued at this level and recommend investors await a better entrance point or new catalysts before adding shares or taking a new position.

Risks

(1) Scale-back in government infrastructure spending (2) Delay in the development of proprietary subway signaling and nuclear island automation products (3) Project delays (4) Slowdown in new orders in the subway segment (5) Competition (6) Slow accounts receivable turnover (7) Backlog risk (8) Customer retention (9) End of government R&D subsidies.

Notice Regarding Privacy and Confidentiality:.

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

BEIJING, April 18, 2011 /PRNewswire-Asia/ -- Hollysys Automation Technologies, Ltd. announced today signing a contract of approximately US$ 24.30 million or RMB 159.02 million to supply its 200-250km/h high-speed rail ATPs to various local bureaus of Ministry of Railways of China. The delivery is expected to be completed by the end of May 2011.

The on-board signaling equipment ATP (Automatic Train Protection) works together with the ground-based signaling equipment TCC (Train Control Center), as the crucial control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway traffic and operation.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are very pleased of winning the 200-250km/h high-speed rail ATPs contract under the current market situation. With approximately 17,000 km of high-speed rail tracks currently in construction and newly announced budget of RMB 2.8 trillion for the next five years, we are still seeing a huge market potential in high-speed rail signaling market for leading players like Hollysys to realize and capture going forward. Hollysys will continue to leverage on its core growth pillar foundations of strong R&D capability and strategic alliance to increase its market share in this unprecedented high-speed rail build-out."

Rodman and Renshaw on HOLI                                                    2/18/2011

HOLI Reports 2Q11 Results: Maintain Market Perform Rating Based on Valuation.

Hollysys Automation Technologies, Inc.(HOLI) posted 2Q11 results that were above the Street and our expectations. Revenues came in at $74.4 million, substantially above the consensus of $63.3 million and our estimate of $58.0 million. Fully diluted EPS of $0.27 exceeded both the consensus of $0.18 and our 2Q11 forecast of $0.16. Management increased FY11 revenue and net income guidance from $233-$237 million and $38-$39 million to $243-$247 million and $39-$41 million or $0.71-$0.75 per fully diluted share, respectively. The company experienced strong year over year and sequential revenue growth in industrial automation and rail signaling and controls segments and reported another record backlog of $288.5 million. That said, given the recent run up in share price, we continue to view HOLI shares as fairly valued at current levels, even after an upward adjustment in the FY11 guidance. We maintain our Market Perform rating based on valuation. 

Valuation 

While we are pleased with HOLI 2Q11 performance, with the shares trading at 21x and 19x our FY11 and FY12 fully diluted EPS estimates of $0.74 and $0.84 compared to 24x and 18x multiples for automation equipment peer group and 25x and 17x multiples for railway equipment peer group, we consider HOLI shares to be fully valued, and recommend investors await a better entrance point or new catalysts before adding shares or taking a new position. 

Risks 

(1) Scale-back in government infrastructure spending (2) Delay in the development of proprietary subway signaling and nuclear island automation products (3) Project delays (4) Slowdown in new orders in the subway segment (5) Competition (6) Slow accounts receivable turnover (7) Backlog risk (8) Customer retention (9) End of government R&D subsidies.


Notice Regarding Privacy and Confidentiality:
This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Results for Second Quarter

• For the three months ended December 31, 2010, total revenues increased by 61.1% to $74.4 million, from $46.2 million in the comparable prior fiscal year period.
• For the three months ended December 31, 2010, the non-GAAP net income excluding non-cash stock compensation cost was $15.0 million or $0.27 per diluted share based on 55 million shares outstanding. This represents an increase of $6.9 million, or 85.4%, over the $8.1 million, or $0.16 per share based on 51 million shares outstanding, reported in the prior year period.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "We are very pleased to report another stellar quarter with solid financial and operational performance. Our financials were significantly improved on a year-on-year basis, and our operational status and backlog continued its upward trend. I would like to discuss some of the key events that took place during this quarter."

"In this quarter, amid robust growth from all business lines, our high-speed rail business set another quarterly high from not only revenue but also backlog perspective."

Dr. Wang concluded, "Given our strong financial performance to date and historical record-high backlog balance, we are revising our fiscal 2011 revenues and net income guidance from $233M to $237M and $38 million to $39 million to $243 million to $247 million and $39 million to $41 million respectively."

Rodman & Renshaw on HOLI                       1/10/2011

Initiating Coverage with a Market Perform Rating 

Investment Thesis 

We are initiating coverage on Hollysys Automation Technologies Limited (Hollysys) with a Market Perform/Speculative Risk rating. Hollysys is a leading provider of integrated automation and controls solutions for industrial clients, high speed railways, urban transit networks and nuclear power plants. The company has a rich portfolio of product offerings, well-known and trusted brand and a significant share of China’s industrial automation, rail signaling and nuclear power automation and controls market. As one of only two qualified suppliers in China of high speed rail signaling systems for 300-350 km/hr. high speed rail segments and one of the five approved providers for the 200-250 km/hr. segment and the only certified domestic automation control systems provider to the nuclear industry in China, Hollysys stands to benefit from massive high-speed railway and nuclear power build-out in China. The company also represents an attractive play on the urbanization and rising labor costs trends in China that will drive the investment into urban transit infrastructure and factory automation. We forecast revenues and fully diluted EPS of $235.6 million and $0.69 for FY11 and $285.1 million and $0.82 for and FY12, respectively. Although we are confident in the company’s long-term growth potential, the recent share appreciation, in our opinion, fully reflects our current earnings estimates. We await a pullback or new catalysts before reviewing our rating.

Valuation 

Although we are optimistic about Hollysys future prospects, with the valuation scraping the upper range of historical P/E multiple, we now consider the shares fairly valued. Hollysys shares are currently trading at 23x and 19x our FY11 and FY12 fully diluted EPS estimates of $0.69 and $0.82 compared to 25x and 19x multiples for automation equipment peer group and 22x and 17x multiples for railway equipment peer group. Trading at 17x and 14x FY11 EV/EBITDA and FY12 EV/EBITDA multiple, the stock appears to be fully valued on an EV/EBITDA basis as well. We recommend investors await a better entrance point or new catalysts before adding shares or taking a new position.

Risks 

(1) Scale-back in government infrastructure spending (2) Delay in the development of proprietary subway signaling and nuclear island automation products (3) Project delays (4) Competition (5) Slow accounts receivable turnover (6) Backlog risk (7) Customer retention (8) End of government R&D subsidies.

Notice Regarding Privacy and Confidentiality: 

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

 Q4 Financial Highlights:

    -- Revenues of $56.4 million, representing an increase of 25.9% compared
       to $44.8 million year-over-year
    -- Gross margin at 33.9%, as compared to 33.5% year-over-year
    -- Non-GAAP net income of $10.7 million, as compared to $6.3 million and a
       69.2% increase year-over-year
    -- Record-breaking backlog balance at $252.9 million as of June 30, 2010,
       a 33.8% increase compared to $188.9 million year-over-year
    -- Operating cash inflow of $1.8 million
    -- Non-GAAP EPS of $0.20 vs. $0.14

Dr. Changli Wang, Hollysys' Chairman of the Board and CEO, stated, "We are very pleased to report a solid fiscal 2010 annual result, culminated by the fourth quarter of strong financial and operational results, amid some of the difficulties we overcame during the year. Our financials demonstrated the continuous trend of revenues and earnings growth on a year-over-year basis, and our record-breaking backlog balance and strong sales pipeline indicated our strong operational status going into the new fiscal year. Most important of all, Hollysys is becoming a stronger and better company, not only from the market competitiveness perspective, but also from the corporate management perspective.

Dr. Wang concluded, "Given the backlog balance and strong pipeline across all of our business segments, we believe our revenue and net income growth will accelerate to approximate 35% and 25% respectively in our fiscal 2011. At the same time, the company has decided to grow our industrial automation sales team by an exponential rate and increase the investment in corporate research and development initiatives to further establish Hollysys as a dominant leader in automation and control field, across industrial, rail, and subway industries in China. "

Based on our operating results for fiscal 2010, we project our fiscal 2011:

• Revenues to be in the range of USD 233M to USD 237M.
• Non-GAAP net income to be in the range of USD 38M to USD 39M.
• Net income per share of USD 0.69 to USD 0.71, based on expected 55 million shares outstanding vs. $0.58 for fiscal 2010.