Press Releases

FY2012-Q3-Ended March 31, 2012-Hollysys Automation Technologies Reports Unaudited Financial Results for the Fiscal Year 2012 Third Quarter

Mon, 14 May 2012 20:55:29 +0800

Hollysys Automation Technologies, Ltd.

FOR IMMEDIATE RELEASE

Hollysys Automation Technologies Reports Unaudited Financial Results for the Fiscal Year 2012 Third Quarter Ended March 31, 2012

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.

Beijing, China – May 14, 2012 – Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced its unaudited financial results for the fiscal year 2012 third quarter ended March 31, 2012 (see attached tables).

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 both China 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.”

The Third Quarter ended March 2012 Unaudited Financial Results Summary

To facilitate a clear understanding of Hollysys operational result, a summary of unaudited non-GAAP financial results is shown as below:

In USD thousands, except share numbers and EPS
			Three Months ended			Nine Months ended

			March	March	%			March	March	%
			31,2012	31,2011	Change			31,2012	31,2011	Change


Revenues		$	66,135	55,765	18.6%		$	233,587	190,979	22.3%
	Integrated Contract Revenue	$	61,755	52,426	17.8%		$	221,138	180,998	22.2%
	Products Sales	$	4,380	3,339	31.2%		$	12,449	9,981	24.7%
Cost of Revenues		$	40,119	33,268	20.6%		$	143,747	120,525	19.3%
Gross Profit		$	26,016	22,497	15.6%		$	89,840	70,454	27.5%
Total Operating Expenses		$	14,115	12,708	11.1%		$	40,499	33,751	20.0%
	Selling	$	6,106	5,320	14.8%		$	21,148	14,275	48.1%
	General and Administrative	$	4,934	4,885	1.0%		$	17,177	13,370	28.5%
	Research and Development	$	5,588	3,854	45.0%		$	18,538	14,628	26.7%
	VAT refunds and government subsidy	$	(2,513)	(1,352)	85.9%		$	(16,364)	(8,522)	92.0%
Income from Operations		$	11,902	9,790	21.6%		$	49,341	36,703	34.4%
Other income (expense), net		$	1,029	(63)	(1,736.8)%		$	1,292	(616)	(309.8)%
Gains (Losses) on disposal of long term investment		$	2,045	23	8,758.4%		$	2,042	1,451	40.8%
Share of net income of equity investees		$	(507)	406	(224.7)%		$	(355)	2,360	(115.0)%
Interest expense, net		$	(224)	(447)	(50.0)%		$	(1,386)	(1,168)	18.7%
Income Tax Expenses		$	2,540	169	1,407.0%		$	5,741	3,811	50.6%
Non-GAAP net income (loss) attributable to non-controlling interest		$	77	(87)	(188.8)%		$	300	(75)	(497.9)%
Non-GAAP Net Income attributable to Hollysys Automation Technologies Ltd.		$	11,628	9,628	20.8%		$	44,893	34,994	28.3%
Basic Non-GAAP EPS		$	0.21	0.18	16.7%		$	0.81	0.64	26.6%
Diluted Non-GAAP EPS		$	0.21	0.17	23.5%		$	0.81	0.64	26.6%

Stock-based Compensation Cost		$	100	134	(25.9)%		$	414	396	4.5%
GAAP Net income attributable to Hollysys		$	11,529	9,493	21.4%		$	44,479	34,598	28.6%
Basic GAAP EPS		$	0.21	0.17	23.5%		$	0.80	0.64	25.0%
Diluted GAAP EPS		$	0.21	0.17	23.5%		$	0.80	0.63	27.0%

Basic Weighted Average Common Shares Outstanding		$	55,933,984	54,671,818	2.3%		$	55,547,536	54,451,063	2.0%
Diluted Weighted Average Common Shares Outstanding		$	56,046,907	55,055,393	1.8%		$	55,742,634	54,876,540	1.6%

Operational Results Analysis for the Third quarter ended March 31, 2012

For the three months ended March 31, 2012, total revenues increased by 18.6% to $66.1 million, from $55.8 million in the prior fiscal year period. Among total revenues, revenue from integrated contracts increased by 17.8% to $61.8 million, as compared to $52.4 million for the same period of the prior year. The Company’s integrated contract revenue by segment was shown as followings:

(In USD million)

	Three months ended March 31,				Six months ended March 31,
	2012		2011		2012		2011
	$	% to Total	$	% to Total	$	% to Total	$	% to Total
	$	Revenue	$	Revenue	$	Revenue	$	Revenue

Industrial Automation	35.7	57.7%	26.1	49.8%	133.1	60.2%	94.3	52.1%
Rail Automation	21.1	34.2%	26.3	50.2%	70.9	32.0%	86.7	47.9%
Overseas	5.0	8.1%	-	-	17.1	7.8%	-	-
Total	61.8	100.0%	52.4	100.0%	221.1	100.0%	181.0	100.0%

The industrial automation revenue of $35.7 million for the three months ended March 31, 2012 is consisted of industrial automation revenue of $35.6 million and nuclear revenue of $0.1 million in previous break-down categories. And the rail transportation revenue of $21.1 million for the three months ended March 31, 2012 is consisted of high-speed rail revenue of $13.2 million and subway automation revenue of $7.9 million.

As a percentage of total revenues, overall gross margin was 39.3% for the three months ended March 31, 2012, as compared to 40.3% for the same period of last year. The gross margin for integrated contracts and product sales were 37.9% and 59.9% for the three months ended March 31, 2012, as compared to 38.8% and 65.1% for the same period of last year respectively. The gross margin fluctuation was mainly due to the different revenue mix with different margin.

For the three months ended March 31, 2012, selling expenses were $6.1 million, compared to $5.3 million year over year, and $8.1 million quarter over quarter. Compared to the same period of prior year, the increase was mainly due to the Company’s expanded sales network and increased selling staffs. As a percentage of total revenues, selling expenses were 9.2% compared to 9.5% year over year, and 10.0% quarter over quarter.

General and administrative expenses, excluding non-cash stock-based compensation expense, were $4.9 million for the quarter ended March 31, 2012, representing an increase of $0.1 million, or 1.0%, as compared to $4.8 million for the same period of prior year. As a percentage of total revenues, G&A expenses were 7.5% and 8.8% for the three months ended March 31, 2012 and 2011, respectively. Including the non-cash stock compensation cost recorded on a GAAP basis, G&A expenses were $5.0 million and $5.0 million for three months ended March 31, 2012 and 2011, respectively.

Research and development expenses were $5.6 million for the three months ended March 31, 2012, compared to $3.9 million year over year, and $6.9 million quarter over quarter. Compared to the same period of prior year, the increase was mainly due to the Company’s increased R&D activities. As a percentage of total revenues, R&D expenses were 8.4% compared to 6.9% year over year, and 8.6% quarter over quarter.

The VAT refunds and government subsidy amounted to $2.5 million for three months ended March 31, 2012, as compared to $1.3 million for the comparative prior year period, representing an increase of $1.2 million, or 85.9%, mainly due to Hangzhou Hollysys, the Company’s wholly-owned subsidiary, recognized a subsidy of $0.9 million during this quarter, which was granted to encourage the Company’s research and development activities in DCS field.

The gains on disposal of long term investment amounted to $2.0 million for the quarter ended March 31, 2012, which Beijing Hollysys, the Company’s wholly-owned subsidiary, disposed 10% equity interest in China Techenergy Co., Ltd. by consideration of RMB 27.8 million (approximately $4.4 million), and recognized a disposal gain of $2.0 million during this quarter. After this transaction, Beijing Hollysys continues to hold 40% equity interest in China Techenergy.

The income tax expenses were $2.5 million for the three months ended March 31, 2012, compared to $0.2 million year over year, and $1.3 million quarter over quarter. The effective tax rate was 18.0% compared to 1.8% year over year, and 6.2% quarter over quarter. The large increase of tax expenses was mainly due to an income tax expense of $1.0 million related to VAT refunds was recognized by Beijing Hollysys during this quarter, as the Beijing Tax Bureau specified the VAT refunds be taxable. For the nine months ended March 31, 2012, the effective tax rate was 11.4%, as compared to 9.9% for the prior year period.

For the three months ended March 31, 2012, the non-GAAP net income to Hollysys excluding non-cash stock compensation cost was $11.6 million or $0.21 per diluted share based on 56 million shares outstanding. This represents an increase of $2.0 million, or 20.8%, over the $9.6 million, or $0.17 per share based on 55 million shares outstanding, reported in the prior year period. On a GAAP basis, net income attributable to Hollysys was $11.5 million, or $0.21 per diluted share representing an increase of $2.0, or 21.4%, over the $9.5 million, or $0.17 per diluted share reported in the prior year period.

Backlog Highlights

Hollysys’ backlog as of March 31, 2012 was $401.8 million, compared to $332.1 million on December 31, 2011, and $280.9 million on March 31, 2011. The large increase was mainly contributed by a backlog of $63.2 million, brought by contracts with Hong Kong MTR Corporation to provide High-Speed Rail Signaling Systems. The detailed breakdown of the backlog by segment is as followings:

(In USD million)

			Quarter-over-Quarter Analysis			Year-over-Year Analysis
	2012-3-31		2011-12-31			2011-3-31
	$	% to Total	$	% to Total	%	$	% to Total	%
	$	Backlog	$	Backlog	Change	$	Backlog	Change

Industrial Automation	144.8	36.0%	124.4	37.5%	16.4%	106.3	37.9%	36.1%
Rail Automation	208.4	51.9%	170.4	51.3%	22.3%	174.6	62.1%	19.4%
Overseas	48.6	12.1%	37.3	11%	30.3%	-	-	-
Total	401.8	100.0%	332.1	100.0%	21.0%	280.9	100.0%	43.1%

Cash Flow Highlights

The net cash provided by operating activities was $1.5 million for the three months ended March 31, 2012; Including investing and financing activities, the total net cash outflow for this quarter was $3.7million, mainly due to a cash outflow of $2.0 million for repayment of long-term loans and $3.7 million used for purchase of property, plant and equipment.

Balance Sheet Highlights

As of March 31, 2012, Hollysys’ cash and cash equivalents were $126.2 million, compared to $130.0 million on December 31, 2011. For the three months ended March 31, 2012, Days Sales Outstanding (“DSO”) is 160 days, as compared to 156 days year over year and 150 days quarter over quarter; and inventory turnover was 68 days, as compared to 101 year over year and 54 days quarter over quarter.

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.”

Conference Call

Management will discuss the current status of the Company’s operations during a conference call at 9:00 AM ET/9:00 PM Beijing time on Tuesday, May15, 2012. Interested parties may participate in the call by dialing the following numbers approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Hollysys Automation Technologies conference call. The conference call identification number is. 73953456.

    1-866-519-4004 (USA)
    800-930-346 (HK)
    +852-2475-0994 (HK)
    800-819-0121 (China Landline)
    400-620-8038 (China Mobile)
    +65-6723-9381 (International)

In addition, a recorded replay of the conference call will be accessible within 24 hours via Hollysys’ website at:

http://www.hollysys.com.sg/home/index.php/investor-relations/events-a-webcast

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 50 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

SAFE HARBOUR:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies, Ltd.
http://www.hollysys.com

+8610-58981386

+8610-58981326

Email: investors@hollysys.com

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HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In US Dollars)

		Three months ended				Nine months ended
		March 31,				December 31,
		2012		2011		2012		2011
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues
Integrated contract revenue	$	61,754,657	$	52,426,094	$	221,138,496	$	180,997,840
Products sales		4,380,008		3,339,012		12,448,646		9,980,879

Total revenues		66,134,665		55,765,106		233,587,142		190,978,719


Cost of integrated contracts		38,361,214		32,102,736		139,510,271		115,984,582
Cost of products sold		1,757,506		1,165,022		4,237,085		4,540,308

Gross profit		26,015,945		22,497,348		89,839,786		70,453,829


Operating expenses
Selling		6,105,737		5,320,126		21,147,519		14,274,548
General and administrative		5,033,217		5,019,553		17,591,141		13,766,858
Research and development		5,587,796		3,854,212		18,538,206		14,628,051
VAT refunds and government subsidy		(2,513,331)		(1,351,983)		(16,363,865)		(8,522,489)

Total operating expenses		14,213,419		12,841,908		40,913,001		34,146,968


Income from operations		11,802,526		9,655,440		48,926,785		36,306,861


Other income(expense), net		1,029,217		(62,881)		1,291,613		(615,693)
Gain (Losses) on disposal of an equity investee		2,045,042		23,086		2,042,015		1,450,627
Share of net gains of equity investees		(506,650)		406,303		(354,953)		2,359,630
Interest expense, net		(223,602)		(447,235)		(1,385,501)		(1,167,705)

Income before income taxes		14,146,533		9,574,713		50,519,959		38,333,720


Income taxes expenses		2,540,429		168,574		5,741,077		3,811,422

Net income		11,606,104		9,406,139		44,778,882		34,522,298


Less: Net income (loss) attributable to non-controlling interest		77,294		(87,072)		300,162		(75,428)

Net income attributable to Hollysys Automation Technologies Ltd.	$	11,528,810	$	9,493,211	$	44,478,720	$	34,597,726


Weighted average number of common shares		55,933,984		54,671,818		55,547,536		54,451,063

Weighted average number of diluted common shares		56,046,907		55,055,393		55,742,634		54,876,540

Basic earnings per share attributable to Hollysys Automation Technologies Ltd.		0.21		0.17		0.80		0.64

Diluted earnings per share attributable to Hollysys Automation Technologies Ltd.		0.21		0.17		0.80		0.63

Other comprehensive income
Net income		11,606,104		9,406,139		44,778,882		34,522,298
Translation adjustments		594,719		2,461,800		6,248,591		7,894,021

Comprehensive income		12,200,823		11,867,939		51,027,473		42,416,319

Less: Comprehensive income attributable to non-controlling interest		78,486		(79,906)		327,351		(47,166)

Comprehensive income attributable to Hollysys Automation Technologies Ltd.	$	12,122,337	$	11,947,845	$	50,700,122	$	42,463,485









		HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
		CONSOLIDATED BALANCE SHEETS
		(In US Dollars)

				March 31,		December 31,
				2012		2011
				(Unaudited)		(Unaudited)
ASSETS
	Current Assets
		Cash and cash equivalents	$	126,178,593	$	129,918,106
		Contract commitment deposit in banks		4,832,623		2,698,087
		Accounts receivable, net of allowance for doubtful accounts of $13,626,327 and $12,947,639		106,710,893		101,591,729
		Cost and estimated earnings in excess of billings, net of allowance for doubtful accounts of $1,558,430 and $1,467,630		100,326,971		94,160,656
		Other receivables, net of allowance for doubtful accounts of $347,264 and $335,697		7,738,132		9,813,354
		Advances to suppliers		9,081,346		6,715,126
		Amount due from related parties		15,642,061		15,755,057
		Inventories, net of provision of $2,456,312 and $2,542,564		28,764,216		26,606,991
		Prepaid expenses		977,026		1,050,170
		Income tax recoverable		171,551		572,804
		Deferred tax assets		2,101,850		2,281,798

	Total current assets			402,525,262		391,163,878


	Property, plant and equipment, net			68,667,959		69,628,760
	Long term investments			15,857,673		17,548,814
	Goodwill			29,872,841		29,875,776
	Deferred tax assets			1,069,204		1,196,892


	Total assets			517,992,939		509,414,120


LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities
		Short-term bank loans		5,334,878		5,329,291
		Current portion of long-term bank loans		7,943,695		7,935,374
		Accounts payable		76,929,206		70,671,271
		Construction cost payable		927,693		926,721
		Deferred revenue		34,882,340		34,668,157
		Accrued payroll and related expense		5,379,151		10,149,946
		Income tax payable		4,293,253		4,537,854
		Warranty liabilities		3,033,303		3,040,047
		Other tax payables		15,187,451		11,086,248
		Accrued liabilities		8,028,948		10,029,391
		Amounts due to related parties		2,185,521		3,476,228
		Advance receipt of disposal of equity interests in an equity investee		-		4,412,068

	Total current liabilities			164,125,439		166,262,596

		Long-term bank loans		26,763,935		28,716,050


	Total liabilities			190,889,374		194,978,646


	Commitments and contingencies			-		-


	Equity
		Common stock, par value $0.001 per share, 100,000,000 shares authorized, 55,834,782 and 55,698,917 shares issued and outstanding		55,999		55,835
		Additional paid-in capital		150,580,096		150,112,992
		Appropriated earnings		23,091,073		23,090,979
		Retained earnings		119,191,215		107,662,499
		Accumulated comprehensive income - translation adjustments		33,047,213		32,453,686

	Total Hollysys Automation Technologies Ltd. stockholder's equity			325,965,596		313,375,991

		Non-controlling interest		1,137,969		1,059,483

	Total equity			327,103,565		314,435,474

	Total liabilities and equity		$	517,992,939	$	509,414,120


HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US Dollars)

			Three months ended		Nine months ended
			March 31, 2012		March 31, 2012
			(Unaudited)		(Unaudited)
Cash flows from operating activities:
	Net income	$	11,606,104	$	44,778,882
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
	Depreciation and amortization		1,815,818		4,896,043
	Allowance for doubtful accounts		885,792		3,175,806
	Provision for inventories		(88,124)		669,166
	Gains on disposal of property, plant and equipment		(459,659)		(420,026)
	Impairment Loss		5,739		5,739
	Gains on disposal of long-term investments		(2,045,042)		(2,042,015)
	Share of net gains from equity investees		506,650		354,953
	Stock-based compensation		99,606		414,318
	Deferred tax assets (liabilities), net		310,615		(82,836)
Changes in operating assets and liabilities:
	Accounts receivable		(4,351,576)		(195,594)
	Cost and estimated earnings in excess of billings		(7,321,710)		5,447,468
	Inventories		(2,021,445)		(148,656)
	Advance to suppliers		(2,341,922)		(567,851)
	Other receivables		2,103,416		3,803,941
	Deposits and other assets		(2,054,290)		(483,416)
	Due from related parties		(539,888)		(2,177,470)
	Accounts payable		6,046,454		7,463,857
	Deferred revenue		144,826		(10,218,311)
	Accruals and other payable		(2,552,865)		4,211,790
	Due to related parties		(2,396,699)		(2,349,480)
	Tax payable		4,167,297		159,139

	Net cash provided by operating activities		1,519,097		56,695,447

Cash flows from investing activities:
	Purchase of property, plant and equipment		(3,680,087)		(5,769,298)
	Proceeds from disposing property, plant and equipment		64,590		3,286,159
	Proceeds from disposal of long-term investments		4,404,405		4,461,290
	Acquisition of equity interests in an equity investee		(476,622)		(476,622)
	Acquisition of a subsidiary, net of cash acquired		-		(5,410,486)
	Advance receipt of disposal of equity interests in an equity investee		(4,360,237)		-

	Net cash used in investing activities		(4,047,951)		(3,908,957)

Cash flows from financing activities:
	Proceeds from short-term loans		-		563,194
	Repayments of short-term loans		-		(7,018,852)
	Repayment of long-term loans		(1,989,100)		(4,018,315)
	Proceeds from exercise of share options		367,662		672,000
	Dividend paid to ex-shareholders of a subsidiary		-		(8,224,328)

	Net cash used in financing activities		(1,621,438)		(18,026,301)


	Effect of foreign exchange rate changes		410,779		749,345

	Net decrease in cash and cash equivalents	$	(3,739,513)	$	35,509,534

	Cash and cash equivalents, beginning of period	$	129,918,106	$	90,669,059
	Cash and cash equivalents, end of period		126,178,593		126,178,593

Reconcile GAAP Net Income to Non-GAAP Net Income

The following table provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.


		Three months ended					Nine months ended
		March 31,					March 31,
			2012		2011		2012		2011
			(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Net income attributable to Hollysys Automation Technologies Ltd.		$	11,528,810	$	9,493,211	$	44,478,720	$	34,597,726
Adjustments:
	Stock-based compensation cost		99,606		134,388		414,318		396,426

Non-Gaap Net Income attributable to Hollysys Automation Technologies Ltd.		$	11,628,416	$	9,627,599	$	44,893,038	$	34,994,152

SAFE HARBOUR: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE: Hollysys Automation Technologies, Ltd 09/05/2011 /CONTACT: Hollysys Automation Technologies, Ltd., investors@hollysys.com; /Web site: http://www.hollysys.com / (HOLI)

March 31 2012:Hollysys Automation Technologies to Announce Financial Results for Its Fiscal 2012 Third Quarter ended on March 31, 2012 and Host Earnings Conference Call

Tue, 08 May 2012 17:56:28 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies to Announce Financial Results for Its Fiscal 2012 Third Quarter ended on March 31, 2012 and Host Earnings Conference Call

Beijing, China – March 07, 2012 – 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 will report financial results for its fiscal 2012 third quarter ended on March 31, 2012 before the market opens on Tuesday, May 15, 2012.

The Company will host a conference call at 9:00 a.m. ET /9:00 p.m. Beijing Time on May 15, 2012, to discuss the financial results for the fiscal 2012 third quarter ended March 31, 2012 and its business outlook for the rest of fiscal year 2012.

To participate, please dial the following numbers ten minutes before the scheduled start of the call. The conference call identification number is: 73953456.

1-866-519-4004 (USA)
800-930-346 (HK)
+852-2475-0994(HK)
800-819-0121 (China Landline)
400-620-8038 (China Mobile)
+ 65-6723-9381 (International）

In addition, a recording of the conference call will be accessible within 24 hours via Hollysys’ website at:

http://www.hollysys.com.sg/home/index.php/investor-relations/events-a-webcast

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 50 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, South-East Asia, and the Middle East. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-5898-1386
+8610-5898-1326
investors@hollysys.com

March 26, 2012:Hollysys to Participate in Upcoming Investor Events in March and April 2012

Mon, 26 Mar 2012 16:38:03 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies to Participate in Upcoming Investor Events

Beijing, China – March 26, 2012 – 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 will participate in the following investor events in March and April 2012.

UBS HK/China Small & Mid-Caps Corporate Day
Event:	One-on-One meetings and small group meetings
Date:	March 28, 2012
Location:	UBS Office
	52/F, Two International Finance Centre
	8 Finance Street, Central, Hong Kong

JP Morgan’s Asia Infrastructure Corporate Access Day
Event:	One-on-One meetings and small group meetings
Date:	April 24-25, 2012
Location:	J.P. Morgan Conference Center
	Hong Kong
Date:	April 26, 2012
Location:	J.P. Morgan Conference Center
	Singapore

About Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI)

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, South-East Asia, and the Middle East. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

For further information, please contact:

Hollysys Automation Technologies, Ltd.
www.hollysys.com

(8610) 5898-1386
+1-646-593-8125
investors@hollysys.com

SAFE HARBOUR: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the significance of the contract win and the Company's ability to successfully implement the project; the Company's ability to benefit from market opportunities in the high-speed railway segment through 2011 as a result of the Chinese government's stimulus plan; the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of HLS' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE: Hollysys Automation Technologies, Ltd 12/01/2009 /CONTACT: Jennifer Zhang, Investor Relations, +(8610)-5898-1386, investors@hollysys.com, Investor Relations of Hollysys Automation Technologies, Ltd./ /Website: http://www.hollysys.com / (HOLI)

March 20, 2012:Hollysys Automation Technologies to Provide the Complete Suite of High-speed Rail Signaling Systems to Guangzhou-Shenzhen-Hong Kong Express Rail Hong Kong Section Valued at US$ 63.15 Million

Tue, 20 Mar 2012 16:08:51 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies to Provide the Complete Suite of High-speed Rail Signaling Systems to Guangzhou-Shenzhen-Hong Kong Express Rail Hong Kong Section Valued at US$ 63.15 Million

Beijing, China – March 20, 2012 – 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.”

About the Hong Kong Section of XRL

The 26-km long Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, also known as the XRL, is an express railway connecting West Kowloon in Hong Kong and Guangzhou through Shenzhen at a designed maximum operating speed of 200km/h. It is a committed cross boundary transport infrastructure project scheduled for completion in 2015. After crossing the boundary, the Mainland Section of the XRL runs north for a further 116 km to Guangzhou, with new stations at Futian, New Shenzhen (Longhua), Humen and Guangzhou South Railway Station. The Express Rail Link will connect with the 16,000-km National High-speed Railway Network and will enhance Hong Kong's role as the southern gateway to the Mainland.

About the MTR Corporation

The MTR Corporation is a listed company on the Stock Exchange of Hong Kong (SEHK: 0066) and included in the Hang Seng Index (Commerce & Industry). The company is a major public transit builder and operator as well as a major property developer and landlord in Hong Kong; it also has extensive railway business outside Hong Kong. Established in 1975, has approximately 21,300 employees globally. The company owns and runs the Hong Kong MTR metro system and also invests in railways in different parts in the world, includes operating rapid-transit systems in London, Stockholm, Beijing, Shenzhen, and Melbourne. The Company is also engaged in other businesses in addition to its railway operations. These include the development of residential and commercial projects, property leasing and management, advertising, kiosk and shop rentals and telecommunication services

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

For further information, please contact:

Hollysys Automation Technologies, Ltd.
www.hollysys.com
+8610-5898-1386
+8610-5898-1326
investors@hollysys.com

SAFE HARBOUR:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

March 7, 2012：HOLI_ Hollysys Automation Technologies Announces a US$14.02 Million Contract Win by Its Singaporean Subsidiary

Sun, 11 Mar 2012 21:17:23 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies Announces a US$14.02 Million Contract Win by Its Singaporean Subsidiary

Beijing, China – March 07, 2012 – 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”.

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

About Concord Corporation Pte Ltd. and Its Group of Companies

Concord Corporation Pte Ltd. and its group of companies (Concord) is consisted of Concord Corporation Pte Ltd. and Concord Electrical Pte Ltd. incorporated in Singapore, Concord Electrical Sdn Bhd incorporated in Malaysia, and CCPL’s Dubai Branch Office in United Arab Emirates. Founded in 1983, Concord engages in providing end-to-end complete electrification related services in rail, power, semiconductor, pharmaceutical, petrochemical, and other industrial sectors, by working with multinational corporations such as Mitsubishi, Alstom, Thales, Bombardier, Siemens, Areva, and ABB. Its complete electrification related services encompass design, engineering, procurement, project management, construction and commissioning, and maintenance. As a established regional electrification service provider in rail industry, Concord 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. Concord became a wholly-owned subsidiary of Hollysys on a cash and stock transaction closed on July 1, 2011.

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-5898-1386
+8610-5898-1326
investors@hollysys.com

SAFE HARBOUR:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

February 20, 2012:Hollysys Automation Technologies Reports Unaudited Financial Results for the Fiscal Year 2012 Second Quarter Ended December 31, 2011

Wed, 22 Feb 2012 18:22:40 +0800

Hollysys Automation Technologies, Ltd.

FOR IMMEDIATE RELEASE

Hollysys Automation Technologies Reports Unaudited Financial Results for the Fiscal Year 2012 Second Quarter Ended December 31, 2011

Q2 Financial Highlights

    • 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.

BEIJING, China - February 20, 2011 -- Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced its unaudited financial results for the fiscal year 2012 second quarter ended December 31, 2011 (see attached tables).

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: “We are very pleased to report another quarter with solid financial and operational performance amid the unfavorable external economic conditions and feel excited about our achievements and breakthroughs in several sectors. Here I would like to take this opportunity to discuss some key events that took place in this quarter:

“Industrial automation business continues its strong growth momentum thanks to our strategy change of total solution proposition and sales force and sales network expansion. We are pleased that we won 6×660MW ultra-supercritical thermal power generating units in aggregate in 2011 in high-end thermal power automation and control market which has 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 across the country.

“In our high-speed rail segment, we delivered satisfying financial results despite a mixed high-speed rail environment in China for this quarter, which demonstrates the strength and breadth of our high-speed rail business. We signed a contract of approximately $4.2 million to supply our 200-250km/h high-speed rail ATP equipment to Ministry of Railways of China ("MOR") while the new contract tender of China’s high-speed rail was considered to be quiet at the time. Given the intense demand for high-speed rail build-out with China’s large population transportation demand and limited land use resources together with approximately 15,000 km of high-speed rail tracks currently in construction in China which will require signaling system to be installed prior to commercial operation, we believe there is a huge market potential in high-speed rail signaling market for leading players like Hollysys to realize and capture. Besides, we have obtained European Safety Standard Certification Level 4 (SIL 4) for our proprietary signaling products, including Automatic Train Protection (ATP), Balise Transmission Module (BTM), Line-side Electronic Unit (LEU), Temporary Train Control System (TSRS), Vital Computer platform (HVC), Train Control Center (TCC) and interlocking system. With the whole product suite of our proprietary high-speed rail signaling systems development completed and received European Safety Standard certification, Hollysys is poised to explore the vast international railway market and achieve fruitful results to further create value for our shareholders.

“In our subway business segment, we’re excited from winning the competitive bid to supply our Main Control System (MCS) to Hong Kong MTR Corporation for the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) valued at approximately HK $ 65.6 million (approximately USD $ 8.4 million). This is the first international bid of our proprietary SCADA system with the MTR Corporation against other multinational companies, which is a strong validation of our proprietary technology and implementation capabilities and a remarkable milestone of distributing our footprint in the international subway arena. As we have achieved the breakthrough of international market and have laid a solid technology foundation and accumulated in-depth implementation knowledge and experiences, we are expecting more international contracts in pipeline. In addition to the Hong Kong MTR contract, we are also excited from the contract win with Beijing Metro Construction and Administration Corporation to supply the integrated surveillance control and data acquisition system (SCADA) to Beijing Subway Line 14 at $18.8 million. We attribute this important record to our numerous successful applications, advanced technology and strong implementation capability, which has been able to stay ahead of our competition while developing along with the industry.”

“We are also very pleased to see the smooth integration with our wholly owned subsidiary Concord Corporation Pte. Ltd (“Concord”). In this quarter, Concord successfully signed a contract with Sendan International Co., Ltd to provide electrical, instrumentation and control installation works for Rabigh Power Plant Ⅱ in Rabigh, Saudi Arabia at approximately $16.90 million. This is the first sizable contract win by Concord after the acquisition and we are glad to see that Concord is continuously winning new businesses, while its integration into Hollysys has been well underway in both new products development and business development. We believe the combination of Concord’s customer base and industry know-how with Hollysys’ proprietary technology and products will pave our way to a broader market space of rail and industrial automation sectors in Southeast Asia and the Middle East.

“Another major event took place in this quarter is that we announced CFO Departure and appointment of CFO’s Replacement. We sincerely appreciate our former CFO, Mr. Peter Li for his contributions as Hollysys CFO and extend our best wishes to his new endeavors. Meanwhile, we are very pleased to see Ms. Herriet Qu, Financial Controller, is internally promoted to Chief Financial Officer of Hollysys overseeing the overall corporate financial management, who has been with the Company for more than four years with MBA degree from Oklahoma City University. After this smooth transition of CFO, together with the appointment of corporate senior executives COO, Mr. Jianfeng He, and Senior VP Business Development, Mr.Baiqing Shao, our senior management team will remain our strategic vision and continuously devote ourselves into Hollysys’ future development and growth, to better serve our clients and shareholders’ best interests.”

The Second Quarter ended December 2011 Unaudited Financial Results Summary

To facilitate a clear understanding of Hollysys operational result, a summary of unaudited non-GAAP financial results is shown as below:

In USD thousands, except share numbers and EPS
			Three Months ended			Nine Months ended

			December	December	%			December	December	%
			31, 2011	31, 2010	Change			31, 2011	31,2010	Change


Revenues		$	80,288	74,371	8.0%		$	167,452	135,214	23.8%
	Integrated Contract Revenue	$	75,902	71,198	6.6%		$	159,384	128,572	24.0%
	Products Sales	$	4,386	3,173	38.2%		$	8,069	6,642	21.5%
Cost of Revenues		$	49,412	47,595	3.8%		$	103,629	87,257	18.8%
Gross Profit		$	30,877	26,776	15.3%		$	63,824	47,956	33.1%
Total Operating Expenses		$	8,871	11,358	-21.90%		$	26,385	21,043	25.40%
	Selling	$	8,060	5,384	49.70%		$	15,042	8,954	68.00%
	General and Administrative	$	7,385	4,713	56.70%		$	12,243	8,485	44.30%
	Research and Development	$	6,881	6,448	6.70%		$	12,950	10,774	20.20%
	VAT refunds and government subsidy	$	-13,456	-5,187	159.40%		$	-13,851	-7,171	93.20%
Income from Operations		$	22,007	15,418	42.70%		$	37,439	26,913	39.10%
Other income (expense), net		$	74	-595	-112.50%		$	262	875	-70.00%
Gains (Losses) on disposal of long term investment		$	-3	66	-104.60%		$	-3	1,428	-100.20%
Share of net income of equity investees		$	207	2,238	-90.80%		$	152	526	-71.10%
Interest expense, net		$	-441	-445	-0.90%		$	-1,162	-720	61.30%
Income Tax Expenses		$	1,334	1,700	-21.50%		$	3,201	3,643	-12.10%
Non-GAAP net income (loss) attributable to non-controlling interest		$	82	4	2143.00%		$	223	12	1814.00%
Non-GAAP Net Income attributable to Hollysys Automation Technologies Ltd.		$	20,428	14,978	36.40%		$	33,265	25,367	31.10%
Basic Non-GAAP EPS		$	0.37	0.28	33.30%		$	0.6	0.47	29.00%
Diluted Non-GAAP EPS		$	0.37	0.27	34.10%		$	0.6	0.46	29.50%

Stock-based Compensation Cost		$	157	131	20.10%		$	315	262	20.10%
Net income attributable to Hollysys Automation Technologies Ltd.(GAAP)		$	20,271	14,847	36.50%		$	32,950	25,105	31.30%
Basic GAAP EPS		$	0.36	0.27	33.50%		$	0.6	0.46	29.10%
Diluted GAAP EPS		$	0.36	0.27	34.30%		$	0.59	0.46	29.60%

Basic Weighted Average Common Shares Outstanding		$	55,703,338	54,449,129	2.30%		$	55,356,413	54,449,564	1.70%
Diluted Weighted Average Common Shares Outstanding		$	55,852,982	54,936,098	1.70%		$	55,592,152	54,895,992	1.30%

Operational Results Analysis for the Second quarter ended December 31, 2011

For the three months ended December 31, 2011, total revenues increased by 8.0% to $80.3 million, from $74.4 million in the prior fiscal year period. Among total revenues, revenue from integrated contracts increased by 6.6% to $75.9 million, as compared to $71.2 million for the same period of the prior year. The Company’s integrated contract revenue by segment was shown as following:

(In USD million)

	Three months ended December 31,				Six months ended December 31,
	2011		2010		2011		2010
	$	% to Total	$	% to Total	$	% to Total	$	% to Total
	$	Revenue	$	Revenue	$	Revenue	$	Revenue

Industrial Automation	44.5	58.6%	35.5	50.3%	97.5	61.2%	67.7	52.9%
Rail Automation	24.3	32.0%	35.1	49.7%	49.7	31.2%	60.4	47.1%
Overseas	7.1	9.4%	-	-	12.2	7.6%	-	-
Total	75.9	100.0%	70.6	100.0%	159.4	100.0%	128.1	100.0%

The industrial automation revenue of $44.5 million for the three months ended December 31, 2011 is consisted of industrial automation revenue of $41.5 million and nuclear revenue of $3.0 million in previous break-down categories. And the rail transportation revenue of $24.3 million for the three months ended December 31, 2011 is consisted of high-speed rail revenue of $17.5 million and subway automation revenue of $6.8 million.

As a percentage of total revenues, overall gross margin was 38.5% for the three months ended December 31, 2011, as compared to 36.0% for the same period of last year. The gross margin for integrated contracts and product sales were 36.4% and 73.4% for the three months ended December 31, 2011, as compared to 35.7% and 42.1% for the same period of last year respectively. The gross margin increase was mainly due to a few higher margin projects and portion of projects of high-speed rail being recognized in the quarter.

For the three months ended December 31, 2011, selling expenses were $8.1 million, compared to $7.0 million quarter-over-quarter, and $5.4 million year-over-year. The increase was mainly due to the Company’s expanded sales network and increased selling staffs. As a percentage of total revenues, selling expenses were 10.0% compared to 8.0% quarter-over-quarter, and 7.2% year-over-year.

General and administrative expenses, excluding non-cash stock-based compensation expense, were $7.4 million for the quarter ended December 31, 2011, representing an increase of $2.7 million, or 56.7%, as compared to $4.7 million for the same period of prior year. The increase was mainly consisted of an increase of $1.9 million contributed by the newly acquired or set-up subsidiaries, and an increase of $0.5 million in allowance for doubtful accounts. As a percentage of total revenues, G&A expenses were 9.2% and 6.3% for the three months ended December 31, 2011 and 2010, respectively. Including the non-cash stock compensation cost recorded on a GAAP basis, G&A expenses were $7.5 million and $4.8 million for three months ended December 31, 2011 and 2010, respectively.

Research and development expenses were $6.8 million for the three months ended December 31, 2011, compared to $6.4 million for the same period of last year. As a percentage of total revenue, R&D expenses were 8.6% and 8.7% for three months ended December 31, 2011 and 2010, respectively.

The VAT refunds and government subsidy amounted to $13.5 million for three months ended December 31, 2011, as compared to $5.2 million for the comparative prior year period, representing an increase of $8.3 million, or 159.4%. According to the accounting policy, the Company only recognizes the VAT refunds upon the completion of the government approval process. In this quarter, the PRC government approved and granted total VAT refunds of $11.8 million to the Company, of which $5.3 million was related to sales during January to June 2011, and the remaining $6.5 million was related to sales during July to December 2011.

Income tax expenses were $1.3 million for the three months ended December 31, 2011, compared to $1.7 million for the prior year period. The effective tax rate was 6.2% and 10.3% for the quarter ended December 31, 2011, and 2010, respectively. The low rate for this quarter is mainly due to the large sum of VAT refunds recognized, which was a non-taxable income.

For the three months ended December 31, 2011, the non-GAAP net income to Hollysys excluding non-cash stock compensation cost was $20.4 million or $0.37 per diluted share based on 55 million shares outstanding. This represents an increase of $5.4 million, or 36.4%, over the $15.0 million, or $0.27 per share based on 54 million shares outstanding, reported in the prior year period. On a GAAP basis, net income attributable to Hollysys was $20.3 million, or $0.36 per diluted share representing an increase of $0.09, or 33.3%, over the $14.9 million, or $0.27 per share reported in the prior year period.

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. The detailed breakdown of the backlog by segment is as followings:

(In USD million)

			Quarter-over-Quarter Analysis			Year-over-Year Analysis
	2011-12-31		2011-9-30			2010-12-31
	$	% to Total	$	% to Total	%	$	% to Total	%
	$	Backlog	$	Backlog	Change	$	Backlog	Change

Industrial Automation	124.4	37.5%	128.7	42.9%	(3.4%)	95.2	33.0%	30.6%
Rail Automation	170.4	51.3%	157.2	52.4%	8.4%	193.3	67.0%	(11.8%)
Overseas	37.3	11.2%	14.2	4.7%	162.4%	-	-	-
Total	332.1	100.0%	300.1	100.0%	10.7%	288.5	100.0%	15.1%

Cash Flow Highlights

The net cash provided by operating activities was $57.8 million for the three months ended December 31, 2011, achieving the historic highest, mainly due to accounts receivable collection of $37.2 million and VAT refunds of $11.8 million received in this quarter. Including investing and financing activities, the total net cash inflow for this quarter was $54.4 million, mainly due to a cash outflow of $6.9 million for repayment of short-term loans and a cash inflow of $4.4 million for advance receipt of disposal of 10% equity interests in Beijing Techenergy.

Balance Sheet Highlights

As of December 31, 2011, Hollysys’ cash and cash equivalents were $130.0 million, compared to $75.5 million on September 31, 2011. For the three months ended December 31, 2011, Days Sales Outstanding (“DSO”) is 150 days, as compared to 104 days year-over-year and 138 days quarter-over-quarter; and inventory turnover was 54 days, as compared to 60 year-over-year and 51 days quarter-over-quarter.

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. ”

Conference Call

Management will discuss the current status of the Company’s operations during a conference call at 8:30 AM ET/9:30 PM Beijing time on Tuesday, February 21, 2012. Interested parties may participate in the call by dialing the following numbers approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Hollysys Automation Technologies conference call. The conference call identification number is .48678090.

    1-866-519-4004 (USA)
    800-930-346 (HK)
    +852-24750994 (HK)
    800-819-0121 (China Landline)
    400-620-8038 (China Mobile)
    +65-67239381 (International)

In addition, a recorded replay of the conference call will be accessible within 24 hours via Hollysys’ website at:

http://www.hollysys.com.sg/home/index.php/investor-relations/events-a-webcast

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

SAFE HARBOUR:

For further information, please contact:

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies, Ltd.
http://www.hollysys.com

+8610-58981386

+8610-58981326

Email: investors@hollysys.com


HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In US Dollars)

		Three months ended				Six months ended
		December 31,				December 31,
		2011		2010		2011		2010
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues
Integrated contract revenue	$	75,901,956	$	71,197,708	$	159,383,839	$	128,571,746
Products sales		4,386,448		3,173,063		8,068,638		6,641,867

Total revenues		80,288,404		74,370,771		167,452,477		135,213,613


Cost of integrated contracts		48,243,403		45,758,899		101,149,057		83,881,846
Cost of products sold		1,168,308		1,836,224		2,479,579		3,375,286

Gross profit		30,876,693		26,775,648		63,823,841		47,956,481


Operating expenses
Selling		8,059,951		5,383,553		15,041,782		8,954,422
General and administrative		7,542,441		4,844,166		12,557,924		8,747,305
Research and development		6,880,941		6,447,952		12,950,410		10,773,839
VAT refunds and government subsidy		(13,456,043)		(5,186,791)		(13,850,534)		(7,170,506)

Total operating expenses		9,027,290		11,488,880		26,699,582		21,305,060


Income from operations		21,849,403		15,286,768		37,124,259		26,651,421


Other income(expense), net		74,470		(595,396)		262,396		874,729
Gain (Losses) on disposal of an equity investee		(3,027)		65,927		(3,027)		1,427,541
Share of net gains of equity investees		206,872		2,237,943		151,697		525,786
Interest expense, net		(440,760)		(444,655)		(1,161,899)		(720,470)

Income before income taxes		21,686,958		16,550,587		36,373,426		28,759,007


Income taxes expenses		1,334,468		1,699,844		3,200,648		3,642,848

Net income		20,352,490		14,850,743		33,172,778		25,116,159


Less: Net income (loss) attributable to non-controlling interest		81,938		3,653		222,868		11,644

Net income attributable to Hollysys Automation Technologies Ltd.	$	20,270,552	$	14,847,090	$	32,949,910	$	25,104,515


Weighted average number of common shares		55,703,338		54,449,129		55,356,413		54,449,564

Weighted average number of diluted common shares		55,852,982		54,936,098		55,592,152		54,895,992

Basic earnings per share attributable to Hollysys Automation Technologies Ltd.		0.36		0.27		0.60		0.46

Diluted earnings per share attributable to Hollysys Automation Technologies Ltd.		0.36		0.27		0.59		0.46

Other comprehensive income
Net income		20,352,490		14,850,743		33,172,778		25,116,159
Translation adjustments		1,714,300		2,422,268		5,653,872		5,432,221

Comprehensive income		22,066,790		17,273,011		38,826,650		30,548,380

Less: Comprehensive income attributable to non-controlling interest		90,814		13,627		248,865		32,740

Comprehensive income attributable to Hollysys Automation Technologies Ltd.	$	21,975,976	$	17,259,384	$	38,577,785	$	30,515,640









		HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
		CONSOLIDATED BALANCE SHEETS
		(In US Dollars)

				December 31,		September 30,
				2011		2011
				(Unaudited)		(Unaudited)
ASSETS
	Current Assets
		Cash and cash equivalents	$	129,918,106	$	75,481,686
		Contract commitment deposit in banks		2,698,087		5,181,347
		Accounts receivable, net of allowance for doubtful accounts of $12,947,639 and $11,807,986		101,591,729		141,702,792
		Cost and estimated earnings in excess of billings, net of allowance for doubtful accounts of $1,467,630 and $1,245,195		94,160,656		91,083,222
		Other receivables, net of allowance for doubtful accounts of $335,697 and $287,941		9,813,354		10,142,615
		Advances to suppliers		6,715,126		8,909,293
		Amount due from related parties		15,755,057		12,328,919
		Inventories, net of provision of $2,542,564 and $1,878,520		26,606,991		28,648,382
		Prepaid expenses		1,050,170		827,102
		Income tax recoverable		572,804		-
		Deferred tax assets		2,281,798		2,230,438
		Assets held for sale		-		9,109,996

	Total current assets			391,163,878		385,645,792


	Property, plant and equipment, net			69,628,760		60,127,428
	Long term investments			17,548,814		18,602,786
	Goodwill			29,875,776		30,653,451
	Deferred tax assets			1,196,892		1,592,503


	Total assets			509,414,120		496,621,960


LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities
		Short-term bank loans		5,329,291		11,763,847
		Current portion of long-term bank loans		7,935,374		6,687,753
		Accounts payable		70,671,271		73,521,893
		Construction cost payable		926,721		1,766,133
		Deferred revenue		34,668,157		40,759,978
		Accrued payroll and related expense		10,149,946		8,335,960
		Income tax payable		4,537,854		4,171,832
		Warranty liabilities		3,040,047		3,053,148
		Other tax payables		11,086,248		12,870,295
		Accrued liabilities		10,029,391		8,201,316
		Amounts due to related parties		3,476,228		3,291,229
		Advance receipt of disposal of equity interests in an equity investee		4,412,068		-

	Total current liabilities			166,262,596		174,423,384

		Long-term bank loans		28,716,050		30,291,586


	Total liabilities			194,978,646		204,714,970


	Commitments and contingencies			-		-


	Equity
		Common stock, par value $0.001 per share, 100,000,000 shares authorized, 55,834,782 and 55,698,917 shares issued and outstanding		55,835		55,700
		Additional paid-in capital		150,112,992		149,651,434
		Appropriated earnings		23,090,978		23,061,780
		Retained earnings		107,662,499		87,421,146
		Accumulated comprehensive income - translation adjustments		32,453,687		30,748,261

	Total Hollysys Automation Technologies Ltd. stockholder's equity			313,375,991		290,938,321

		Non-controlling interest		1,059,483		968,669

	Total equity			314,435,474		291,906,990

	Total liabilities and equity		$	509,414,120	$	496,621,960


HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US Dollars)

			Three months ended		Six months ended
			December 31, 2011		December 31, 2011
			(Unaudited)		(Unaudited)
Cash flows from operating activities:
	Net income	$	20,352,490	$	33,172,778
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
	Depreciation and amortization		1,698,141		3,080,225
	Allowance for doubtful accounts		1,299,127		2,290,014
	Provision for inventories		648,874		757,290
	Losses on disposal of property, plant and equipment		39,616		39,633
	Losses on disposal of long-term investments		3,027		3,027
	Share of net gains from equity investees		(206,872)		(151,697)
	Stock-based compensation		157,356		314,712
	Deferred tax assets (liabilities), net		370,493		(393,451)
Changes in operating assets and liabilities:
	Accounts receivable		37,237,477		4,155,982
	Cost and estimated earnings in excess of billings		349,123		12,769,178
	Inventories		1,636,494		1,872,789
	Advance to suppliers		2,262,263		1,774,071
	Other receivables		775,796		1,700,525
	Deposits and other assets		2,304,991		1,570,874
	Due from related parties		(1,707,697)		(1,637,582)
	Accounts payable		(3,402,657)		1,417,403
	Deferred revenue		(6,468,619)		(10,363,137)
	Accruals and other payable		2,380,000		6,764,655
	Due to related parties		155,862		47,219
	Tax payable		(2,114,086)		(4,008,158)

	Net cash used in operating activities		57,771,199		55,176,350

Cash flows from investing activities:
	Purchase of property, plant and equipment		(1,216,399)		(2,089,211)
	Proceeds from disposing property, plant and equipment		454,333		3,221,569
	Receipt from related parties		-		27
	Proceeds from disposal of an investees		86,522		3,765,492
	Acquisition of a subsidiary, net of cash acquired		-		(5,410,486)
	Advance receipt of disposal of equity interests in an equity investee		4,360,237		4,360,237

	Net cash used in investing activities		3,598,171		82,109

Cash flows from financing activities:
	Proceeds from short-term loans		410,298		561,392
	Repayments of short-term loans		(6,870,137)		(6,996,395)
	Repayment of long-term loans		(639,911)		(2,029,215)
	Proceeds from exercise of share options		304,338		304,338
	Dividend paid to ex-shareholders of a subsidiary		-		(8,224,328)

	Net cash used in financing activities		(6,795,412)		(16,384,208)


	Effect of foreign exchange rate changes		(137,538)		374,796

	Net decrease in cash and cash equivalents	$	54,436,420	$	39,249,047

	Cash and cash equivalents, beginning of period	$	75,481,686	$	90,669,059
	Cash and cash equivalents, end of period		129,918,106		129,918,106

Reconcile GAAP Net Income to Non-GAAP Net Income

The following table provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.


		Three months ended					Six months ended
		December 31,					December 31,
			2011		2010		2011		2010
			(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Net income attributable to Hollysys Automation Technologies Ltd.		$	20,270,552	$	14,847,090	$	32,949,910	$	25,104,515
Adjustments:
	Stock-based compensation cost		157,356		131,019		314,712		262,038

Non-Gaap Net Income attributable to Hollysys Automation Technologies Ltd.		$	20,427,908	$	14,978,109	$	33,264,622	$	25,366,553

February 1, 2012: Hollysys Automation Technologies to Announce Financial Results for Its Fiscal 2012 Second Quarter ended on December 31, 2011 and Host Earnings Conference Call

Thu, 02 Feb 2012 18:34:50 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies to Announce Financial Results for Its Fiscal 2012 Second Quarter ended on December 31, 2011 and Host Earnings Conference Call

BEIJING, China - Feb 1, 2011 -- 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 will report financial results for its fiscal 2012 second quarter ended on December 31, 2011 before the market opens on Tuesday, February 21, 2012.

The Company will host a conference call at 8:30 a.m. ET /9:30 p.m. Beijing Time on February 21, 2012, to discuss the financial results for the fiscal 2012 second quarter and its business outlook for the rest of fiscal year 2012.

To participate, please call the following numbers ten minutes before the scheduled start of the call. The conference call identification number is: 48678090.

1-866-519-4004 (USA)
800-930-346 (HK)
+852-2475-0994 (HK)

800-819-0121 (China Landline)
400-620-8038 (China Mobile)
+65-6723-9381 (International）

In addition, a recording of the conference call will be accessible within 24 hours via Hollysys' website at:

http://www.hollysys.com.sg/home/index.php/investor-relations/events-a-webcast

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, South-East Asia, and the Middle East. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

For further information, please contact:

Hollysys Automation Technologies, Ltd.
www.hollysys.com
+86-10-5898-1386
+86-10-5898-1326

investors@hollysys.com

You can also fill in this enquiry form and our personnel will contact you.

January 16, 2012: Hollysys Automation Technologies Announces a US$16.90 Million Contract Win by Its Singaporean Subsidiary

Mon, 16 Jan 2012 00:25:15 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies Announces a US$16.90 Million Contract Win by Its Singaporean Subsidiary

Beijing, January 16, 2011 – 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 contract with Sendan International Co., Ltd to provide electrical, instrumentation and control installation works for Rabigh Power Plant Ⅱ in Rabigh, Saudi Arabia, valued at approximately USD $16.90 million. The project is expected to be completed by mid of 2013.

The Rabigh power plant is one of the major initiatives with an investment of $3.4bn by Saudi Electricity Co. to meet the growing energy demand in Saudi Arabia. The Rabigh-6 plant, using gas turbines, will be powered by natural gas and crude. The project is scheduled to be operational by 2014.

Dr. Changli Wang, CEO and Chairman of Hollysys, commented: “We are pleased to announce the first sizable contract win by Concord and glad to see that Concord is continuously winning new business, while its integration into Hollysys has been well underway in both new products development and business development. We believe the combination of Concord’s customer base and industry know-how with Hollysys’ proprietary technology and products will pave our way to a broader market space of rail and industrial automation sectors in Southeast Asia and the Middle East, to create value for our shareholders.””

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

About Concord Corporation Pte. Ltd. and Its Group of Companies

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com

+86-10-5898-1386
+86-10-5898-1326

investors@hollysys.com

You can also fill in this enquiry form and our personnel will contact you.

SAFE HARBOUR
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

January 15, 2012: Hollysys Automation Technologies to Participate in Upcoming Investor Event

Sun, 15 Jan 2012 18:06:33 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies to Participate in Upcoming Investor Event

Beijing, January 15, 2011 – 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 will participate in the following investor event on 17 January 2012.

CITI Hong Kong/China Mini Conference (Theme: Sector Top Picks)

Event: One-on-one meetings and small group meetings
Date: January 17, 2012
Location: Island Shangri-La Hotel, Hong Kong
Participants: Changli Wang, Chairman & CEO, Jennifer Zhang, Investor Relations Manager

About Hollysys Automation Technologies, Ltd.(NASDAQ: HOLI)

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com

+86-10-5898-1386
+86-10-5898-1326

investors@hollysys.com

You can also fill in this enquiry form and our personnel will contact you.

January 15, 2012: Hollysys Automation Technologies Announces CFO Departure and Appointment of CFO’s Replacement, COO and Senior VP

Sun, 15 Jan 2012 17:00:20 +0800

Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies Announces CFO Departure and Appointment of CFO’s Replacement, COO and Senior VP

Beijing, China – January 15, 2012 – 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 reason 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. ”

About Hollysys Automation Technologies, Ltd.(NASDAQ: HOLI)

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,500 employees with nationwide presence in over 40 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 2000 customers in the industrial, railway, subway & nuclear industries in China, south-east Asia, and the middle east. Its proprietary technologies are applied in its industrial automation solution suite including Distributed Control System (DCS), Programmable Logic Controller (PLC), RMIS, HAMS, OTS, and other products, high-speed railway signaling system of Train Control Center(TCC) and Automatic Train Protection (ATP), and other products, subway supervisory and control platform (SCADA), and nuclear conventional island automation and control system.

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com

+86-10-5898-1386
+86-10-5898-1326

investors@hollysys.com

You can also fill in this enquiry form and our personnel will contact you.

Safe Harbour

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.