CHANGSHU, China, Feb. 13, 2014 /PRNewswire-FirstCall/ --
Sutor Technology Group Limited (the "Company" or "Sutor") (Nasdaq:
SUTR), a leading China-based
manufacturer and distributor of high-end fine finished steel
products used by a variety of downstream applications, today
announced its unaudited financial results for the second quarter of
fiscal year 2014 ended December 31,
2013.
Second Quarter of Fiscal 2014 Financial Results
Highlights:
|
2QFY2014
|
2QFY2013
|
Change
|
Revenues
(million):
|
$128.3
|
$157.9
|
-18.7%
|
Gross profit
(million)
|
$13.6
|
$12.2
|
11.5%
|
Net income
(million)
|
$6.4
|
$4.8
|
33.3%
|
EPS
|
$0.15
|
$0.12
|
25.0%
|
In the second quarter of fiscal 2014, our revenue decreased from
$157.9 million to $128.3 million, as compared with the same period
last year primarily due to reduced revenue of approximately
$29.5 million from our acid-pickled
(AP) products. During the second quarter of fiscal 2014, almost all
of our AP steel was used internally for further processing. As the
first stage of steel processing and being of low gross margin,
acid-pickling historically had limited contribution to the
Company's gross profits and its revenue fluctuated significantly
from quarter to quarter. In general, depending on the requirements
of our products, production scheduling and market conditions, we
may use our AP products for the next stage of processing or sell
them directly to the customers.
We improved our product specifications to meet the market
demand. We produced more HDG steel with thicker zinc coatings than
we previously produced. We gained more traction for our new
Galvalume product and substantially increased its
production. We delivered more value-added customized services
to retain customer loyalty and to gain new customers by extending
our one-stop solution services further down-stream to cover certain
steel processing services for selected customers. As a result, our
gross margin increased to 10.6% from 7.7% and net income increased
to $6.4 million from $4.8 million in the second quarter of fiscal 2014
as compared with the same period last year.
Second Quarter of Fiscal 2014 Major Events
Highlights:
- Successfully completed the construction of the new cold-rolling
production line of 500,000 metric tons annual capacity after more
than two years of preparation, design and construction;
- Our electronic commerce platform Jinying365.com continued to
gain traction - the number of registered users has been doubled to
more than 200,000since the end of the first quarter of fiscal
2014;
- Made further progress on transitioning from a pure traditional
finished steel manufacturer to a full service provider of fine
finished steel products and related services - we now sell fine
finished steel and conduct other activities both on-line and
off-line;
- Upgraded our Quick Response (QR) systems for better inventory
and production management; and
- Completed technological upgrading of certain production lines
by improving the electric and electronic design and replacing the
old components with new ones to establish a zero-incident
management system; the new system is expected to reduce maintenance
expenses, extend equipment life and improve the economic
performance of the production lines.
Ms. Lifang Chen, Chairwoman of
Sutor, commented, "We ended the second quarter of fiscal 2014 with
solid performance. During the quarter, we grew net income, improved
cash flow from operations and reduced bank borrowings. With
the new cold-rolling facility completed, we believe the Company
will be in a better financial and operating situation and the
management will have more leeway to consider various options for
corporate development. In the near term, we will focus on
fine-tuning the new production line and starting commercial
production. In the longer term, we will continue to develop
advanced fine-finished steel products to meet the growing need of
the on-going economic transition and development in China. Further, we will continue to steadily
cultivate our newly developed e-commerce business and make it an
important part of our integrated manufacturing and supply-chain
products and services."
Second Quarter of Fiscal Year 2014 Results
Revenue. For the three months ended December 31, 2013, revenue was $128.3 million, compared to $157.9 million for the same period last year, a
decrease of $29.6 million, or 18.7%.
The decrease was mainly attributable to reduced revenue of
approximately $29.5 million from our
AP products. During the quarter, we produced 124,868 tons of AP
steel and almost all of them were used internally for further
processing. In comparison, we sold 58,904 tons of AP steel during
the second quarter of fiscal 2013. Depending on our product
requirements, market conditions or our production line scheduling,
we may use some or all of our AP steel for further processing.
Historically the gross margin for our AP products was about 3% and
contributed very limited gross profits to the Company.
On a geographic basis, revenue from international sales was
approximately $5.1 million, or 4.0%
of the total revenue, for the three months ended December 31, 2013, as compared to $18.3 million, or 11.6% of the total revenue, for
the same period in 2012. The reduction was mainly due to the timing
of the contract delivery. During the second quarter of fiscal 2014,
we signed more contracts than the same period last year, but some
of them are to be delivered over the coming quarters. Historically
international sales accounted for approximately 10% of our total
sales and we anticipate a similar ratio for fiscal 2014.
Gross profit and gross margin. Gross profit
increased by $1.4 million to
$13.6 million in the three months
ended December 31, 2013, from
$12.2 million in the same period in
2012. Gross profit as a percentage of revenue (gross margin) was
10.6% for the three months ended December
31, 2013, as compared to 7.7% for the same period last
year. The most significant factors affecting the gross margin
were higher HDG production and PPGI production. During the second
quarter of fiscal 2014, production was up 9.1% and 83.7%,
respectively, for HDG steel and PPGI steel, than the same period
last year. Better capacity utilization reduced product unit
depreciation and amortization costs and hence improved gross
margin.
Total operating expenses. Our total operating
expenses decreased by $0.5 million to
$4.0 million in the three months
ended December 31, 2013, from
$4.5 million in the same period in
2012. As a percentage of revenue, our total operating expenses
increased to 3.1% in the three months ended December 31, 2013, from 2.8% in the same period
in 2012.
Selling expenses. Our selling expenses decreased by
$0.7 million to $1.3million in the three months ended
December 31, 2013, from $2.0 million in the same period in 2012. As a
percentage of revenue, our selling expenses decreased to 1.0% for
the three months ended December 31,
2013, from 1.2% for the same period last year. The
decreased selling expenses were mainly due to significantly reduced
international sales. For the second quarter of fiscal quarter 2014,
our export revenue was $5.1 million
as compared with $18.3 million for
the same period last year. Further, we shipped more products
through our local harbor in Changshu to save transportation costs
while in the past, some products were transported through the
harbor in Shanghai.
General and administrative expenses. General and
administrative expenses increased by $0.07
million to $2.62million, or
2.1% of the total revenue, in the three months ended December 31, 2013, from $2.55 million, or 1.6% of the revenue, in the
same period in 2012. The increased general and administrative
expenses were primarily due to increased miscellaneous local fees
and taxes.
Interest expense. Our interest expense increased
by $0.3 million to $2.6 million in the three months ended
December 31, 2013, from $2.3 million in the same period in 2012. As a
percentage of revenue, our interest expense was2.0% of total
revenue in the three months ended December
31, 2013, compared to 1.5% in the same period in
2012. The increase in interest expense was mainly attributable
to increased interest expenses on discounted bank notes. The
average interest rate of our short-term bank loans was stable
during these periods.
Provision for income
taxes. Our income tax expense increased to
$1.6 million in the three months
ended December 31, 2013, from
$1.4 million of income tax in the
same period last year primarily due to the increased taxable
income.
Net income. Net income, without including the
foreign currency translation adjustment, increased by $1.6 million, or 33.3%, to $6.4 million in the three months ended
December 31, 2013, from $4.8 million in the same period in 2012, as a
cumulative result of the above factors.
Financial Condition and Liquidity
As of December 31, 2013, we had
approximately $12.5 million in cash
and $108.7 million in restricted
cash. Our short-term loans plus the current portion of long-term
loans were approximately $128.4
million. The long-term loans were approximately $2.9 million. As of December 31, 2013, the Company had an unused line
of credit with banks of approximately $16.0
million. Under normal operating conditions, we believe we
have sufficient liquidity to carry out our operations in the
foreseeable future.
Conference Call Information
Sutor's management will host an earnings conference call today,
February 13, 2014, at 9:00 a.m. U.S. Eastern time/10:00 p.m. Beijing/Hong
Kong time. Listeners may access the call by dialing US:
+18778470047, CN: 800 876 5011, HK +852 3006 8101, access code:
SUTR. A recording of the call will be available shortly after the
call through March 15, 2014.
Listeners may access it by dialing US: +1866 572 7808, CN: 800 876
5013, HK: +852 3012 8000, access code: 704213.
Functional Currency
The functional currency of the Company is the Chinese Yuan
Renminbi ("RMB"); however, the accompanying financial information
has been expressed in United
States Dollars ("USD"). The accompanying consolidated
balance sheets have been translated into USD at the exchange rates
prevailing at each balance sheet date. The accompanying
consolidated statements of operations and cash flows have been
translated using the weighted-average exchange rates prevailing
during the periods of each statement. Transactions in the
Company's equity securities have been recorded at the exchange rate
existing at the time of the transaction.
About Sutor Technology Group Limited
Sutor is one of the leading China-based manufacturers and distributors of
high-end fine finished steel products used by a variety of
downstream applications. The Company utilizes a variety of in-house
developed processes and technologies to convert steel manufactured
by third parties into fine finished steel products, including
hot-dip galvanized steel, pre-painted galvanized steel,
acid-pickled steel, cold-rolled steel and welded steel pipe
products. To learn more about the Company, please visit
http://www.sutorcn.com/en/index.php.
Forward-Looking Statements
This press release includes certain statements that are not
descriptions of historical facts, but are forward-looking
statements in nature within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements include, among
others, those concerning our expected financial performance,
liquidity and strategic and operational plans, our future operating
results, our expectations regarding the market for our products,
our expectations regarding the steel market, as well as all
assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such
forward-looking statements are not guarantees of future performance
and that a number of risks and uncertainties could cause our actual
results to differ materially from those anticipated, expressed or
implied in the forward-looking statements. These risks and
uncertainties include, but not limited to, the factors mentioned in
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended June 30, 2013, and
other risks mentioned in our other reports filed with the
Securities Exchange Commission ("SEC"). Copies of filings
made with the SEC are available through the SEC's electronic data
gathering analysis retrieval system (EDGAR) at
http://www.sec.gov. The words "believe," "expect,"
"anticipate," "project," "targets," "optimistic," "intend," "aim,"
"will" or similar expressions are intended to identify
forward-looking statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. The Company assumes no obligation and does not
intend to update any forward-looking statements, except as required
by law.
For more information, please contact:
Investor Relations
Sutor Technology Group Limited
Tel: +86-512-5268-0988
Email: investor_relations@sutorcn.com
SUTOR TECHNOLOGY
GROUP LIMITED AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
December 31,
|
|
June
30,
|
|
|
2013
|
|
2013
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
12,525,255
|
$
|
3,601,385
|
Restricted
cash
|
|
108,741,521
|
|
108,825,425
|
Short-term
investments
|
|
3,272,144
|
|
-
|
Trade accounts
receivable, net of allowance for doubtful accounts of $753,383 and
$623,742, respectively
|
|
9,622,962
|
|
7,331,291
|
Notes
receivable
|
|
109,617
|
|
320,888
|
Other receivables and
prepayments, net of allowance for doubtful accounts of $275,483 and
$248,128, respectively
|
|
9,256,709
|
|
3,446,187
|
Advances to
suppliers, unrelated parties, net of allowance for doubtful
accounts of $780,924 and $796,026, respectively
|
|
25,943,158
|
|
43,175,047
|
Advances to
suppliers, related parties, net of allowance for doubtful accounts
of nil, and net of right to offset
|
|
153,903,862
|
|
185,615,973
|
Inventories,
net
|
|
114,409,491
|
|
52,377,135
|
Deferred tax
assets
|
|
1,050,243
|
|
952,417
|
Total Current
Assets
|
|
438,834,962
|
|
405,645,748
|
Non-current
Assets:
|
|
|
|
|
Advances for purchase
of long term assets
|
|
85,857
|
|
17,085,958
|
Property, plant and
equipment, net
|
|
92,366,660
|
|
71,508,912
|
Intangible assets,
net
|
|
3,638,359
|
|
3,074,372
|
Equity method
investments
|
|
7,029,062
|
|
6,686,539
|
Total
Non-current Assets
|
|
103,119,938
|
|
98,355,781
|
TOTAL
ASSETS
|
$
|
541,954,900
|
$
|
504,001,529
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term
loans
|
$
|
124,838,100
|
$
|
138,968,845
|
Long-term loans,
current portion
|
|
3,542,760
|
|
7,418,003
|
Accounts payable,
unrelated parties
|
|
130,117,238
|
|
82,602,243
|
Accounts payable,
related parties
|
|
-
|
|
20,162,069
|
Other payables and
accrued expenses
|
|
7,066,224
|
|
7,291,220
|
Advances from
customers
|
|
21,644,382
|
|
11,008,550
|
Warrant
liabilities
|
|
211,433
|
|
144,535
|
Total Current
Liabilities
|
|
287,420,137
|
|
267,595,465
|
Long-Term
Loans
|
|
2,859,995
|
|
1,180,877
|
Total
Liabilities
|
|
290,280,132
|
|
268,776,342
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Undesignated
preferred stock - $0.001 par value; 1,000,000 shares authorized;
nil shares outstanding
|
|
-
|
|
-
|
Common stock - $0.001
par value; authorized: 500,000,000
shares as of December 31, 2013 and June 30, 2013;
issued: 42,107,267 and 40,965,602 shares
as of December 31, 2013 and June 30, 2013.
|
|
42,107
|
|
40,965
|
Additional paid-in
capital
|
|
43,521,086
|
|
41,793,142
|
Statutory
reserves
|
|
20,426,971
|
|
20,426,971
|
Retained
earnings
|
|
143,894,975
|
|
132,311,592
|
Accumulated other
comprehensive income
|
|
44,441,138
|
|
41,304,026
|
Less: Treasury stock,
at cost, 590,838 shares as of December 31, 2013 and June 30,
2013
|
|
(651,509)
|
|
(651,509)
|
Total
Stockholders' Equity
|
|
251,674,768
|
|
235,225,187
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
541,954,900
|
$
|
504,001,529
|
SUTOR TECHNOLOGY GROUP LIMITED AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
AND COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
For The
Three Months Ended
|
|
|
For The
Six Months Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Revenue from
unrelated parties
|
|
$
|
102,230,215
|
$
|
103,844,847
|
|
$
|
204,412,337
|
$
|
191,073,017
|
Revenue from related
parties
|
|
|
26,086,595
|
|
54,022,011
|
|
|
63,012,798
|
|
83,980,532
|
|
|
|
128,316,810
|
|
157,866,858
|
|
|
267,425,135
|
|
275,053,549
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue from
unrelated parties
|
|
|
(91,296,065)
|
|
(94,105,510)
|
|
|
(183,571,592)
|
|
(174,320,698)
|
Cost of revenue from
related parties
|
|
|
(23,395,036)
|
|
(51,552,002)
|
|
|
(58,025,289)
|
|
(79,976,521)
|
|
|
|
(114,691,101)
|
|
(145,657,512)
|
|
|
(241,596,881)
|
|
(254,297,219)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
13,625,709
|
|
12,209,346
|
|
|
25,828,254
|
|
20,756,330
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(1,337,918)
|
|
(1,978,916)
|
|
|
(3,332,774)
|
|
(4,292,168)
|
General and
administrative expenses
|
|
|
(2,624,720)
|
|
(2,550,249)
|
|
|
(5,528,990)
|
|
(4,680,073)
|
Total Operating
Expenses
|
|
|
(3,962,638)
|
|
(4,529,165)
|
|
|
(8,861,764)
|
|
(8,972,241)
|
Income from
Operations
|
|
|
9,663,071
|
|
7,680,181
|
|
|
16,966,490
|
|
11,784,089
|
|
|
|
|
|
|
|
|
|
|
|
Other
Incomes/(Expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
786,544
|
|
1,059,709
|
|
|
1,836,766
|
|
2,022,050
|
Interest
expense
|
|
|
(2,574,958)
|
|
(2,340,244)
|
|
|
(4,378,253)
|
|
(5,874,436)
|
Changes in fair value
of warrant liabilities
|
|
|
(54,311)
|
|
(1,501)
|
|
|
(66,898)
|
|
14,523
|
Income from equity
method investments
|
|
|
180,956
|
|
185,888
|
|
|
266,128
|
|
174,446
|
Other
income
|
|
|
174,752
|
|
122,520
|
|
|
219,026
|
|
159,138
|
Other
expense
|
|
|
(201,757)
|
|
(563,209)
|
|
|
(219,780)
|
|
(667,524)
|
Total Other
Expenses, net
|
|
|
(1,688,774)
|
|
(1,536,837)
|
|
|
(2,343,011)
|
|
(4,171,803)
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Taxes
|
|
|
7,974,297
|
|
6,143,344
|
|
|
14,623,479
|
|
7,612,286
|
Income tax
expense
|
|
|
(1,579,161)
|
|
(1,371,012)
|
|
|
(3,040,096)
|
|
(1,004,609)
|
Net
Income
|
|
$
|
6,395,136
|
$
|
4,772,332
|
|
$
|
11,583,383
|
$
|
6,607,677
|
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
1,477,555
|
|
708,871
|
|
|
3,137,112
|
|
226,470
|
Comprehensive
Income
|
|
$
|
7,872,691
|
$
|
5,481,203
|
|
$
|
14,720,495
|
$
|
6,834,147
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per
Share
|
|
$
|
0.15
|
$
|
0.12
|
|
$
|
0.28
|
$
|
0.16
|
Diluted Earnings
per Share
|
|
$
|
0.15
|
$
|
0.12
|
|
$
|
0.28
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
|
|
41,453,386
|
|
40,224,003
|
|
|
41,383,956
|
|
40,222,247
|
Diluted
Weighted Average Shares Outstanding
|
|
|
41,453,386
|
|
40,224,003
|
|
|
41,383,956
|
|
40,222,247
|
SUTOR TECHNOLOGY
GROUP LIMITED AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
For The Six
Months Ended
|
|
|
December
31,
|
|
|
2013
|
|
2012
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net income
|
$
|
11,583,383
|
$
|
6,607,677
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
4,510,854
|
|
4,408,037
|
Provision/(reversal)
for doubtful accounts
|
|
123,435
|
|
(708,630)
|
Stock based
compensation
|
|
238,320
|
|
71,524
|
Foreign currency
exchange gain
|
|
(194,913)
|
|
(10,234)
|
(Gain)/loss on
disposal of property, plant and equipment
|
|
(10,985)
|
|
85,198
|
Interest income from
short-term investments carried at amortized cost
|
|
-
|
|
(30,900)
|
Income from equity
method investments
|
|
(266,128)
|
|
(174,446)
|
Deferred income
taxes
|
|
(86,678)
|
|
(179,476)
|
Changes in fair value
of warrant liabilities
|
|
66,898
|
|
(14,523)
|
Changes in current
assets and liabilities:
|
|
|
|
|
Restricted
cash
|
|
(20,188,832)
|
|
2,221,324
|
Trade accounts
receivable
|
|
(2,320,586)
|
|
3,910,051
|
Notes
receivable
|
|
213,696
|
|
364,553
|
Other receivable and
prepayments
|
|
(5,775,579)
|
|
868,254
|
Advances to
suppliers, unrelated parties
|
|
17,643,081
|
|
(5,968,905)
|
Advances to
suppliers, related parties
|
|
33,716,400
|
|
(15,026,467)
|
Inventories
|
|
(61,110,422)
|
|
(7,330,679)
|
Accounts payable,
unrelated parties
|
|
46,830,652
|
|
(5,156,443)
|
Accounts payable,
related parties
|
|
(20,276,893)
|
|
17,975,273
|
Other payables and
accrued expenses
|
|
(293,095)
|
|
(1,078,382)
|
Advances from
customers
|
|
10,458,615
|
|
5,368,031
|
Net Cash
Provided byOperating Activities
|
|
14,861,223
|
|
6,200,837
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(7,818,783)
|
|
(3,217,771)
|
Proceeds from
disposal of property, plant and equipment
|
|
15,052
|
|
523,761
|
Purchase of
intangible assets
|
|
(567,268)
|
|
(3,560,563)
|
Payments for
short-term investments
|
|
(3,254,308)
|
|
-
|
Proceeds from sale of
short-term investments
|
|
-
|
|
4,884,009
|
Investment in
affiliated company
|
|
-
|
|
(6,181,547)
|
Net Cash Used In
Investing Activities
|
|
(11,625,307)
|
|
(7,552,111)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
loans
|
|
93,079,729
|
|
94,118,588
|
Repayment of
loans
|
|
(110,464,374)
|
|
(94,530,050)
|
Proceeds from
issuance of common stock
|
|
1,500,000
|
|
-
|
Changes in restricted
cash
|
|
21,485,248
|
|
10,065,475
|
Payments on
repurchase of common stock
|
|
-
|
|
(43,841)
|
Net Cash
Provided by Financing Activities
|
|
5,600,603
|
|
9,610,172
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
87,351
|
|
8,980
|
|
|
|
|
|
Net Change in Cash
and Cash Equivalents
|
|
8,923,870
|
|
8,267,878
|
Cash and Cash
Equivalents at Beginning of Period
|
|
3,601,385
|
|
9,530,531
|
Cash and Cash
Equivalents at End of Period
|
$
|
12,525,255
|
$
|
17,798,409
|
|
|
|
|
|
Supplemental
Non-Cash Information:
|
|
|
|
|
Offset of notes
payable to related parties against receivable from related
parties
|
$
|
11,126,897
|
$
|
10,609,363
|
Accounts payable for
purchase of long-term assets
|
$
|
(495,344)
|
$
|
(658,841)
|
Advances for purchase
of long-term assets
|
$
|
17,097,874
|
$
|
(334,858)
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
Cash paid during the
period for interest expense
|
$
|
(4,430,640)
|
$
|
(5,025,598)
|
Cash paid during the
period for income tax
|
$
|
(3,122,617)
|
$
|
(1,669,952)
|
SOURCE Sutor Technology Group Limited