(30 July 2014, Hong Kong) – Comba Telecom Systems Holdings Limited (“Comba Telecom” or “the Group”, Hong Kong stock code: 2342), a global leading wireless solutions provider, today announced that the Group is expected to achieve a turnaround by recording a net profit of not less than HK$50,000,000 for the six months ended 30 June 2014 as compared to the net loss of HK$150,676,000 for the corresponding period last year.

The expected turnaround of the Group’s results during the first half of 2014 is attributable to (i) a strong growth in the total revenue of the Group due to the gradual recovery of the global economy and the rollout of 4G networks following the issuance of 4G LTE licenses in Mainland China last year; (ii) an improvement of gross profit margin due to the change of product mix and the launch of high-end products, and (iii) a reduction in the operating expenses as a percentage of the Group’s total revenue attributable to economies of scale and the effective costs control measures. The Group’s unaudited interim results are to be disclosed before the end of August 2014.

Mr. Zhang Yue Jun, Vice Chairman & President of Comba Telecom, said, “We are delighted to witness the expected turnaround for the Group for the first half of the year, clear evidence of the continuous effort and firm determination of our management team and staff despite the challenging environment. Going forward, we will further step up our efforts to put the Group on a path to profitability again and achieve long-term success leveraging the recovery of the global economy, the 4G network rollout opportunities in China and our innovative technologies.”

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