Accelink revenue expansion slightly concentrated recognized financial subsidies to the substantial increase in profit; revenue growth was mainly driven by growth in sales revenue due to the optical module, passive optical components business continued to decline. Meanwhile, the company net profit growth is much higher than revenue growth, mainly due to the Ministry of Finance Innovation Fund subsidy payments in the first quarter, making non-operating revenue grew by 2743.42% year-on-year in the first quarter of 2012, excluding subsidies affect, the company net profit a modest decline.
It is understood that the company reported to the Ministry of Finance in May 2012 for 100G optical communication system key optical components and modules for technical and practical research 'project. In march of this year, the company and its wholly owned subsidiary of Wuhan telecommunication devices co., LTD., received a total of $45.9 million by the ministry of finance of central state-owned capital management budget heavy large technology innovation and industrialization of budget (funding), of which 43.01 million Yuan to make up for company r&d investment, the relevant state will support the company focused on technology research and development tasks, improve the ability of technological innovation as well as the significant technology innovation and industrialization of research and development activities; Another 2.89 million Yuan subsidies for Wuhan telecommunication devices co., LTD. Fiber Optic Cable Modem Technology innovation ability construction, belongs to the state-owned capital investment. According to the relevant provisions of the Enterprise Accounting Standards, the funding of 43.01 million Yuan is related to income, government grants recognized directly in profit or loss for the year 2013, an increase of net profit of 36.56 million Yuan.
In addition the company's continued cost improvements to enhance the overall gross profit margin, expenses for the period to suppress the company's profits. The overall gross profit margin reached 19.01% in the first quarter of 2013, year-on-year growth in the first quarter of 2012, 0.48 percentage point improvement in the company's cost side effectively enhance the overall gross profit margin. Analysts believe that, accompanied by the completion of the fiber optic connector reorganization, the original passive platform and WTD on the deep integration of downstream customers, will be the company's overall expense ratio during a positive impact, and thus boost the steady improvement of the performance of the company.
LTE deployment to pull the transmission network investment, the company is a benefit leading in the field of optical devices. Enter 2013, analysts believe that the company's revenue and profits will be steady growth, mainly determine the reason for this is that China Mobile: 1, 2013 start a large-scale TD-LTE network building, it will bring a lot of mobile backhaul demand for transmission equipment, while China Mobile's investment in the backbone network is also substantial growth, which undoubtedly will boost the demand for the product of the upstream passive and active fiber optic transceiver devices. 2, the original Accelink technical strength fiber amplifiers and wavelength division multiplexing and other products already belongs to the world's leading WTD is the world leader in the field of optical modules, and has a number of core technologies, the combined company has among the world-class manufacturers of optical devices, will maximize the benefit from the construction boom of the domestic transmission network.