HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q1 2019 Earnings Conference Call - Final Transcript
Nov 14, 2018 • 09:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Hollysys Automation Technologies earnings conference call for the first quarter of fiscal year 2019 ended September 30, 2018. At this time all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.
(Operator Instructions) Please be advised that this conference is being recorded today, November 14, 2018, Beijing time.
I'd now like to hand the conference over to Mr. Arden Xia, Investor Relations Director of Hollysys Automation Technologies. Thank you. Please go ahead, Mr. Xia.
Thank you. Hello, everyone, and thank you for joining us. Today, our speakers will be Mr. Baiqing Shao, CEO of Hollysys; and Mr. Steven Wang, CFO of Hollysys; and myself, the IR Director of Hollysys. On today's call, Mr. Shao will provide a general overview of our business, including some highlights for the first quarter of fiscal year 2019. Mr. Steven Wang will discuss our performance from a financial perspective, and we will answer questions afterwards.
(Forward-Looking Cautionary Statements) Please note that all amounts noted in this conference call will be US dollars, unless otherwise noted.
And now I would like to turn the call to Mr. Baiqing Shao. Please go ahead, Mr. Shao.
Thank you, Arden, and greetings to everyone. I would like to discuss some key events during this first quarter. Industrial automation business recorded a 0.4% year-to-year growth in revenue at $57.7 million.
New contract recorded a 9.9% year-to-year growth at $80.2 million. We continued to maintain our share in high-end power industries to execute the low to high end market expansion strategy in chemical and petrochemical industries and to build and maintain our leadership in other verticals.
In power, major contracts we signed include a DCS solution for Guohua Jinjie 2 units 660MW power and Shenhua Shengli 2 unit 660MW power. Contracted growth in chemical and petrochemical remained healthy. Major contracts include additional SIS contracts for the milestone Zhong'an United Coal Chemical Project and additional DCS contract for SINOPEC's p-xylene project.
In addition to the efforts in gaining and maintaining market share in various industries, the company is paying adequate attention to the intelligence manufacturing based on sizable customers we have accumulated through decades, as it is a valuable asset for our long-term sustainable growth. Leveraging our consistent emphasis on R&D, we continue to provide both regular and value-added services to our customers and to accompany them along the cause of the better productivity.
Our widespread national service network enables us to stay closer to the customers, to respond faster and to understand better. Rail business recorded a 43.1% year-to-year growth in revenue at $50.4 million, while new contract increased sharply year-to-year at 866% at $71.5 million. In high-speed railway business, new ATP contracts were signed this quarter, while CRC has published the bidding notice in mid-October for another 320 sets of ATP.
Intake of heavy maintenance contracts are gradually seen as the ATPs are approaching their first 10 years' maintenance cycle. In subway