(23 March 2023 – Hong Kong) ─ Comba Telecom Systems Holdings Limited (“Comba Telecom” or “the Group”, SEHK stock code: 2342, SGX stock code: STC), a global-leading solutions and services provider of wireless and information communications systems, today announced its audited annual results for the year ended 31 December 2022 (the “Current Year”).
During the Current Year, the Group’s revenue significantly increased by 8.4% year-on- year (“YoY”) to approximately HK$6.37 billion. The Group also shifted from a loss to a profit as it recorded net profit of approximately HK$190 million. Gross profit increased by 31.7% YoY, and the gross profit margin rose from 24.2% in the year ended 31 December 2021(the “Prior Period”) to 29.4% in the Current Year, representing an increase of 5.2 percentage points YoY. Additionally, the Board (the “Board”) of Directors has recommended the declaration of a final dividend of HK 1.1 cents per ordinary share, together with the interim dividend of HK 1.0 cent per ordinary share paid, the total dividend for the whole year will likely amount to HK 2.1 cents per ordinary share, equivalent to the total dividend payout ratio of 30.7% on the basis of the total dividend proposed for the Current Year as divided by basic earnings per share.
The three major domestic telecom operators continued to deploy 5G macro base stations in the low and medium frequency bands, promoting the continuous development of multi-spectrum, multi-standard, co-construction and sharing, as they increase the technical threshold of their products. With a highly competitive leading product and comprehensive service advantages, the Group successfully won several tenders for antenna products from major telecoms operators in Mainland China since the second half of 2021. It has also completed international tender projects of antenna products as scheduled, which contributed to a significant growth in the number of orders, which achieved record high of base station antenna products, during the Current Year.
Revenues from major businesses in 2022 are as follows:
|
Businesses |
Revenue (HK$’mn) |
Change YoY |
% of the Group’s revenue |
|
Base Station Antennas and Subsystems |
3,039 |
+25.8% |
47.8% |
|
Network System (including wireless enhancement and wireless access) |
1,050 |
-15.9% |
16.5% |
|
Services |
1,756 |
+3.1% |
27.7% |
|
Other Business (including wireless transmission) |
519 |
+3.8% |
8.0% |
Revenue from base station antennas and subsystems business increased by 25.8% YoY to approximately HK$3.04 billion. The Group's revenue increase was mainly attributed to the significant rebound in the domestic market, acquisition of centralised procurement projects of 5G antenna products from major Chinese telecom operators. Additionally, it completed the phasal launch and delivery of the international tender projects of antenna products as scheduled, which contributed to a significant growth in the number of orders of base station antenna products as compared to the prior period. Targeting the demands for low-carbon and environmental protection around the world and with a view to effectively lower the operational costs of operators, the Group launched a new generation of "green antenna solution" developed through the research, development, design of innovative materials, and proprietary process and production methods. This solution is instrumental in achieving carbon emission reduction goals and assist operators to cut operating expenses. This solution supports various scenarios of green and low-carbon network construction, including compacity and wide coverage, as well as coverage in cities along the high-speed railway and sea routes, and effectively lowers operating costs. The innovative low-loss, high-efficiency, low-carbon green antenna (HelifeedTM) adopts the industry’s first FPTP design concept and product structure. It also utilises advanced coating processes and new environmental materials for its antenna cover. Operators should be able to save around 23 to 34 million kWh of electricity annually for every ten-thousand base stations, equivalent to a reduction of 13,000 to 20,000 tonnes of carbon emissions, which effectively realised the goals of carbon emission reduction and reducing operating expenses for operators.
During the Current Year, network systems business revenue declined, mainly due to the pandemic which caused a delay in the launch and implementation of centralised procurement projects for 5G extended small cells by major telecom operators in Mainland China. In addition, the Group voluntarily terminated the rail transit integration business with lower gross margin to manage costs, and focus on projects with higher quality. The management expects the Network Systems business to thrive in the future following the commencement and delivery of the centralised procurement of related projects in 2023.
The Group’s indirect subsidiary of the Company, Comba Network Systems Company Limited (“Comba Network”), has been a pioneer in small cells industry for more than 20 years, with independent research on radio-frequency products such as RRU and small cells for more than 15 years. They possess key professional and core technologies in mobile telecommunications, providing highly cost-efficient and competitive products and solutions. Comba Network’s 5G small cell products have commenced commercial trials in more than ten provinces, and their 5G's fast and efficient network building solutions have been highly recognised by customers. In August 2022, the Group achieved an excellent result in centralised procurement of 5G extended small cells for China Mobile. The Group will continue to actively participate in small base station centralised procurement projects in the future.
Services revenue increased by 3.1% YoY to approximately HK$1.76 billion, mainly due to the Group's focus on undertaking higher quality projects and investing resources in higher revenue and gross margin projects during the year.
Revenue from major customers in 2022 is as follows:
|
Customers |
Revenue (HK$’mn) |
Change YoY |
% of the Group’s revenue |
|
China Mobile Group |
1,526 |
+0.3% |
24.0% |
|
China Unicom Group |
1,012 |
+105.2% |
15.9% |
|
China Telecom Group |
406 |
-29.7% |
6.4% |
|
China Tower Corporation Limited |
405 |
-5.0% |
6.4% |
|
Other Domestic Customers |
672 |
+4.4% |
10.5% |
|
International Customers and Core Equipment Manufacturers |
2,184 |
+9.3% |
34.3% |
|
ETL Company Limited |
161 |
-24.0% |
2.5% |
Revenue from the international business for the Current Year significantly increased by nearly 10% YoY to approximately HK$2.18 billion. This reflects the success of the Group’s strategy in exploring customer needs, developing target markets, creating new products, and maintaining the competitiveness of its products. Moving forward, the Group will maintain its lead in the market by continuing to innovate its products to remain competitive while maintaining stable partnerships with international mobile operators in key regions and leading global telecoms master equipment providers in network construction. Aside from offering advanced 5G application solutions to global customers, the Group will strengthen its global market position by tapping into the massive demand for 4G network construction in various countries and regions with imbalanced network development.
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About Comba Telecom Systems Holdings Limited
Comba Telecom is a leading global solutions and services provider of wireless and information communications systems with its own R&D and manufacturing base, and sales and service teams. The Company offers a comprehensive suite of products and services including base station antennas and subsystems, wireless access, wireless enhancement, and wireless transmission to its global customers. Headquartered in Hong Kong, with manufacturing bases in China and R&D centers in both China and the United States, Comba Telecom provides wireless communication solutions and information application services to customers in more than 100 countries and regions around the world. The Company has also listed on the Main Board of the Singapore Exchange Securities Trading Limited on 4 January 2023. For further information, please visit: www.comba-telecom.com.
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