Optimizes Product and Customer Mix
Develops PRC and Global Markets in Tandem
Financial Highlights (For the year ended 31 December):
| HKD’000 | 2007 | 2006 | Change |
| Revenue | 1,768,418 | 1,550,441 | +14.1% |
| Gross profit | 681,257 | 586,540 | +16.1% |
| Profit attributable to shareholders | 191,619 | 131,140 | +46.1% |
| Basic earnings per share (HK cents) | 22.56 | 15.69 | +43.8% |
| Dividend per share (HK cents) | 6.00 | 4.50 | +33.3% |
| Net asset value per share (HK dollars) | 1.99 | 1.66 | +19.9% |
(30 March 2008 – Hong Kong) –Comba Telecom Systems Holdings Limited (“Comba” or “the Group”, Hong Kong stock code: 2342), a leading wireless enhancement solutions provider, announced today its annual results for the year ended 31 December 2007.
For the year ended 31 December 2007, the Group’s revenue surged by 14.1% to HKD1,768million compared to 2006. Gross profit recorded a year-on-year growth of 16.1% to HKD681 million. Profit attributable to shareholders increased substantially by 46.1% against 2006 to HKD192 million. The Board of Directors recommended payment of a final dividend of 6.00 HK
cents per ordinary share for the year ended 31 December 2007 (2006: 4.50 HK cents).
Mr. Tony TL Fok, Comba’s Chairman and President, said, “The year 2007 was a year of another record high for Comba, with its all three principal business units achieving satisfactory results. The income growth of our antennas and subsystems operation was especially splendid, with Comba being the first in the industry to offer the tiniest TD BTS antenna. Benefited from the worldwide trend of dual 2G and 3G development, the Group’s wireless enhancement business also yielded enormous returns. During the year, the Group was successfully qualified as an approved supplier in the TD-SCDMA central procurement programme of network operators in the PRC. Besides, the Group is one of the few enterprises in the international
market that is capable of providing 2G and 3G integrated solutions, further solidifying our leading position in the global market.”
During the year, Comba maintained closer cooperation with China Mobile Communications Corporation and its subsidiaries (the “China Mobile Group”) with more wireless enhancement projects undertaken. The Group also introduced various innovative products and solutions and participated in the TD-SCDMA trials conducted in the PRC. These not only further strengthened the Group’s relationships with China Mobile Group, but also increased the income generated from it, which surged by 9.1% compared with 2006 and accounted for 65.3% of the Group’s revenue.
The Group’s strategy to dually develop the PRC and global market has achieved satisfactory returns. In an attempt to explore the overseas market, the Group has established presence in major regions and its global network has extended to every market in which ample opportunities prevail. In addition, with an objective to enlarge the customer base of Comba, the Group has unremittingly expanded its sales channels and enhanced cooperation with core equipment manufacturers. During the year, revenue generated from the international market recorded a year-on-year increase of 54.4%, accounting for 9.9% of the Group’s revenue.
In 2007, revenue contributed from the Group’s wireless enhancement business increased by 1.5% against 2006 and accounted for 50.7% of the Group’s revenue. Revenue generated from the antennas and subsystems business surged 29.0% year-on-yearly, accounting for 27.9% of the Group’s revenue, in which its sales of BTS antennas recorded a substantial growth compared with 2006. Revenue generated from wireless transmission business dropped 15.9% and accounted for 2.7% of the Group’s revenue. Meanwhile, revenue from mobile communication related services recorded significant surge of 44.8%, contributing to 18.8% of the Group’s revenue.
As the reform and opening-up of the PRC mobile communication market continues, there may be more network operators and higher demand for the wireless enhancement services in the PRC and subsequently, higher investment will be made. Comba will be one of the largest beneficiaries from the opportunities arising from such enormous market. Furthermore, with the imminent arrival of 3G in the PRC, and the Group being an important and capable participant in the TD-SCDMA 3G technology trials, it will be able to quickly capitalize on 3G development in the PRC when TD-SCDMA networks are deployed.
Mr. Fok concluded, “Riding on our efforts on continuous product development and internal resources consolidation to enhance our global market competitiveness, we have already taken a pioneer role in the industry for various advanced products. Leveraging on our sophisticated 2G/3G product ranges for different markets, Comba is ready to tap the opportunities ahead.
We are confident of our future expansion to the overseas markets as well as the core equipment manufacturers market. With the expected continuous increase in the number of customers and incomes from abroad, the Group will further optimize its customer mix and strengthen its position in the global market.”