Revenue and Net Profit Up by 33% and 60% Respectively
Further Expanded 2G and 3G markets in China and the Globe
Financial Highlights (For the year ended 31 December)
| HKD’000 | 2006 | 2005 | Change |
| Revenue | 1,550,540 | 1,170,515 | +32.5% |
| Gross Profit | 586,540 | 474,326 | +23.7% |
| Profit attributable to shareholders | 131,140 | 82,089 | +59.8% |
| Basic earnings per share (HK cents) | 15.69 | 9.86 | +59.1% |
| Final dividend per share (HK cents) | 4.5 | 3.0 | +50.0% |
(12 April 2007 – 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 2006.
In 2006, the Group’s revenue and profit attributable to shareholders recorded year-on-year growth of 32.5% and 59.8% to HKD1,550 million and HKD131 million respectively. Basic earnings per share for 2006 was 15.69 HK cents. The Board of Directors proposed a final dividend of 4.5 HK cents per share.
Mr. Tony TL Fok, Comba’s Chairman and President, said, "2006 was a year of solid growth for Comba. We are pleased to be able to deliver growth in all three business lines, namely, wireless enhancement, antennas and subsystems, and wireless transmissions. In addition, the Group’s international sales witnessed another year of remarkable growth with our presence now encompassing most of the world and the expansion of our relationship with core equipment manufacturers. "
During the year, the China Mobile Group continued to be the Group’s largest customer group. With Comba’s broadened product portfolio and increased capital expenditure from the China Mobile Group, revenue generated from the China Mobile Group surged by 67.1% and accounted for 68.2% of the Group’s revenue.
The Group’s international revenue in 2006 more than doubled and accounted for 7.4% of the Group’s revenue compared with 2005. During the year, the Group’s international expansion efforts continued with new operations established in Brazil which extended Comba’s global network to the Caribbean and the Latin America (CALA) region. Together with its existing network spanning across the world, the Group has established strong foundations for its future growth in the global market.
The Group’s wireless enhancement business delivered steady growth in 2006. The antennas and subsystems business achieved significant growth last year with revenue from sales of its Base Transceiver Station (BTS) antennas more than doubled from 2005. Revenue generated from the wireless transmissions business increased more than threefold and accounted for 3.6% of the Group’s revenue in 2006, with its digital microwave products especially well-received globally.
In view of capturing the opportunities in the global and China 3G markets, the Group continuously invested in R&D and developed new products in 2006, including the launch of the world’s first multi-carrier power amplifiers (MCPA) for the AWS band and the development of various market-driven products for WCDMA and TD-SCDMA standards. In addition, Comba participated in the China 3G network trials during the year and became a member of the TD-SCDMA Industry Alliance, ensuring the Group’s position in the market forefront and readiness for the advent of 3G in China in all aspects.
With the relocation of its PRC headquarters to Guangzhou Science City in September 2006, the Group created a world class research and development (R&D) platform for future growth while achieving better coordination among various functional units including R&D, sales and marketing and general management. The relocation has also resulted in more space in the existing facilities being used for manufacturing and production. Such expansion enables the Group to be ready to meet the demand for future opportunities.
Mr. Fok concluded, "We believe that the demand for 2G products in the PRC continues to be strong given the increasing number of mobile subscribers and infrastructure projects as well as the extension of coverage to the rural areas. Furthermore, leveraging our leading position in the 2G market, we expect to benefit from the launch of 3G services in the PRC. In view of our increasing market presence in the global market, we are also working diligently to expand further Comba’s business worldwide. We are confident that, by executing our balanced and carefully planned growth strategies, Comba will maintain its growth momentum and ultimately maximize returns to shareholders."
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