[advertise]广告[/advertise]April 23,2010, Shenzhen, O-net, a leading passive optical component developer and manufacturer, announced the details of their coming IPO on Hongkong stock market. O-net was firstly reported to go public on April 14 (see our report, O-net prepares IPO in Hongkong http://www.cordacord.com/news/content/1/201004/20100414183429.html). But that report is mainly from the viewpoint of O-net's biggest share holder, Shenzhen Kaifa Technology. At that time, O-net didn't responded to the report. According to O-net's news release in Chinese, the company will offer 193,280,000 shares at a price between HK$2.17 and HK$2.90 apiece. 90% of total shares is left for international buyers, and 10% is for local Hongkong buyers. Through the IPO, O-net can finally finance 446million HK dollars. O-net will officially go public on April 29, Thursday,on Hongkong stock market, under the stock code of 877. Lyon securities is the global coordinator for this IPO. In the news released, O-net also announced their financial report for the the first time in her history. During the past 3 years, O-net announced to have a CAGR (compound annual growth rate) of 21.4%. Her revenue in year 2009 is 338.4million HK dollar compared to 284million in year 2008 and 230million in year 2007. Her gross profit margin improved to 45.3% in year 2009 from 38% in year 2008 because of new products and new customers. The CAGR on net income from 2007 to 2009 records 97%. The net income in year 2009 is 79.2million HK dollars, the profit margin is 23.4%. The large net income CAGR is believed to be affected by the booming fiber optics demand in year 2009 in China market. In year 2008 and 2007, O-net is net income is 22.99 million and 20.3 million, much less than the number in year 2009. O-net also predicted her profit in the 1st half year of 2010 will be more than 69.5million HK dollars. According to O-net, her leading customers include Alcatel-lucent, Huawei, and OEM contractors of Ciena and Infinera. The ratio of O-net's revenue from mainland China to total revenue increases from 26.8% of year 2007 to 49% of year 2009. O-net announced they will use the money from the IPO to build a new facility in Pingshan, Shenzhen (44.8%) and to expand their R&D and manufacturing ability (9%), potential acquisitions (31%). O-net's history began before the year 2000 fiber optics bubble. As the fiber optics division of Shenzhen Kaifa technology, they are one of the earliest isolator manufactures around the world. After the bubble, Kaifa moved this division to a different place located in Shenzhen high tech zone and renamed the company O-net. Some venture capitals also invested O-net at that time. O-net once tried develop optic engine for projector and television, but they finally cancel the development. Also they closed their cable TV equipment division several years ago. O-net once tried to develop active components like TOSA and ROSA, but they also gave up. As of today, O-net is mainly a passive component manufacturer. O-net is famaous for their isolator, collimator and VOA products. In this year's OFC, O-net also demonstrated their DPSK demodulators products.