Comprehensive sales and distribution network
Good reputation and brand name in the coaxial cable industry
Advanced manufacturing technology and large-scale production capacity
Comprehensive range of products for telecommunication
Strong research and development capabilities
Strong team of research and development experienced professionals responsible for new product development and production processes improvements.
Developed and commercialised many varieties of coaxial cables and telecommunication accessories and obtained several patents related to our products.
Our comprehensive security solutions for various industry setors in the field of digital technology security are based on our self-developed White-Box Cryptography(WBC);
Our self-developed intelligent loT identity authentication security chips(PMSC 1.0) is preset with a global unique number and passcode to provide Root of Trust; sopports Shangyong Mima(SM3/4) to provide financial grade security; is mature technology, all IP domestic independent control and no capacity and property rights hidden; supports all kinds of MCU chips, with the characteristics of full compatibility, ultra-low dynamic power consumption, “Zero” static power consumption, user-customizable, ensuring the security of data cryptography and identity authentication, and can resist common attacks that utilize the software vulnerabilities to steal passcode and passcode side channels
Experienced and professional management team
Expand our sales network in existing and new overseas markets.
Expanding market share of Antenna
Continue to enhance competitiveness of high temperature resistant cable products
Explore new growth areas and revenue streams
Enhance our research and development team
With the second batch of 4G licences being issued in February 2015, China’s 3 telecom operators are now officially on the 4G bandwagon.
Industry Trend
According to data released by the Ministry of Industry and Information Technology (MIIT), China’s mobile Internet traffic totalled approximately 2.05 million Terabytes, a year-on-year increase of approximately 47.1%. As the digital connectivity’s effect in driving commerce continues to be one of the key pillars to China’s economic growth, the Chinese government had, in March 2015, launched an “Internet Plus” action plan that seeks to drive economic growth through the integration of internet with traditional businesses such as manufacturing and agriculture. One of its policy goals is to promote information consumption and raise connection speeds in the coming years through the upgrade of telecommunications infrastructure to boost data streaming ability, especially in remote and rural areas. These policies are expected to have a positive bearing on our Group for the next few years.
Infrastructure development remains a top priority for China’s government. As part of China’s continued plan to raise infrastructure standards, the government will focus investing in rail infrastructure locally, and overseas. In the first half of this financial year, the Group has successfully obtained a tender with one of the railway companies to market its leaky cable series (under our RF Cables products) for use in railway mobile communications infrastructure. In addition, the Group had successfully tendered for mobile communications projects for urban rail transit in two of China’s cities. This is a significant milestone as railway communications is a new domain with a large market potential for the Group and may pave opportunities for future railway and urban rail transit construction projects. On the policy front, the government is also encouraging Chinese companies to participate in overseas infrastructure projects, of which the Group hopes to be a part of. We are cautiously optimistic on the positive effects these policies will have on our Group.
Antennas
The Group has also made strides on the antenna front through the successful tender of its 4G antennas with one of China’s three telecom operators in the first half of this financial year. The deepening of our antenna footprint has also encouraged us to develop into new areas such as camouflage antennas, as the trend of usage is increasingly palpable in urban landscape. The Group anticipates this would eventually be a potentially larger market than traditional antennas. In the first half of this year, we have successfully tendered for a camouflage antenna project in one of China’s provinces with one of the three telecom operators, albeit a small one. Nevertheless, this marks the first time the Group is entering into a new antenna business segment. The Group will continue efforts to grow this business segment.
Exports
Sales to overseas market has improved in the first six months over the previous period, increasing approximately 45.7%. Our venture into overseas markets has made some headway with our products being endorsed by various international telecoms equipment vendors, evident from the continued orders from these vendors. Such recognition together with the Group’s consistent product quality has also contributed to the major tenders which were awarded to the Group by large telecoms equipment vendors and telecom operators during the first half of this financial year.
Moving Forward
Telecom operators continue to adopt a cautious approach in capital spending within and outside China. The old model of simply adding capacity due to increasing demand would inadvertently increase telecom operators’ capital expenditure. In this aspect, telecom operators have been exploring efficient uses of existing infrastructure and assets, which invariably led to the establishment of the China Communications Facilities Services Corporation Limited, which is a joint venture by China’s 3 telecom operators owning telecom infrastructure assets, to enable resource sharing and lower operating costs.
4G telecommunications require a much higher data capacity and transmission, and this constraint has led to smaller but a larger number of base stations being built but covering a smaller area with higher transmission capacity. These newer base stations adopt smaller sized cables, which have lower selling prices compared to larger cables. However, technology evolvement has also led to other possible alternative products to be used on base stations. The combination of the above elements, coupled with rising competition between telecom operators and telecom equipment suppliers is likely to impose a ceiling on our product margins.
Despite technology evolvement and the industry’s cautious spending, network growth in China continues to be on an expansion phase supported by the growing demands of content-rich data throughput by the relatively robust growth of local 3G/4G mobile subscribers. The Group witnessed growth in demand for its products during this period, albeit an evolving product mix from changes in technology and trends.
Our orders have continued to hold up well during the first six months of this financial period as a result of several successful tenders with major equipment vendors and telecom operators. From the orders received to date, the Group is optimistic that its results for the current financial year, barring unforeseen circumstances, will perform better compared to the previous financial year.
Looking ahead, although the telecoms industry particularly in the area of wireless systems remains challenging due to a host of factors such as competition, changing technology and talent retention, the Group remains committed on its efforts to improve and execute its business strategies amidst a new era in mobile communications in China.
