Comba Announces 2007 Annual Results Revenue and Net Profit Up 14.1% and 46.1% Respectively

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.”