Sinotel Technologies, the provider of wireless telecommunications infrastructure and solutions in China, says the group has reported a 29.4% y-o-y rise in net profit to RMB139 million ($28.6 million) for the financial year ending Dec 31 and a 47.2% increase in revenue to RMB533.2 million.

The increase in revenue was primarily due to a stronger demand for Wireless Network Solutions totalling RMB177.6 million, representing a 51% increase over the previous financial year. Gross Profit margins remained at 38.2% while net profit margins averaged at 26.1%.

The increase in revenue from Wireless Network Solutions segment was mainly contributed from Shanxi Province and Emergency Mobile Base Station business (EMBS). Shanxi continues to be the key contributor to the revenue of the group. But Sinotel says the group continues to focus on expanding its marketing efforts in EMBS.

Gross profit for the group increased by RMB57.0 million, representing a 38.9% increase over the previous financial year. Overall gross profit margin for FY2009 was 38.2%, slightly lower than FY2008 of 40.5% due to an increase in contribution from system integration projects which traditionally command lower margins. Contribution from direct sales of equipment also played a part as Telcos adopted central procurement policy for certain equipment since late 2008.

Earnings per share for the group increased 25.8% from RMB38.3 cents in the previous year to RMB48.2 cents for the financial year ended 31 December 2009.