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Public company info - Centron Telecom International Holding Ltd. , 01155.HK

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Centron Telecom International Holding Ltd., 01155.HK - Company Profile
Chairman Dai Guohuang
Share Issued (share) 841,000,000
Par Currency Hong Kong Dollar
Par Value 0.1
Industry Telecomm. & Networking Equipment
Corporate Profile Business Summary: The principal activities of the Company are the manufacture and sale of wireless telecommunications coverage system equipment and the provision of related engineering services, the manufacture and sale of private telecommunications network systems and products, and the sale of digital television network coverage equipment and the provision of related engineering services. Performance for the year: For the year ended 31 December 2016, the Group realised revenue of RMB1,587.2 million, representing an increase of RMB53.2 million or 3.5% as compared with the revenue of RMB1,534.0 million for the year ended 31 December 2015. For the year ended 31 December 2016, net profit was RMB116.9 million, which increased by approximately 130.3% from the net profit of RMB50.8 million for the year ended 31 December 2015. The net profit margin accounted for 7.4% of the total revenue, representing an increase of 4.1 percent points as compared with 3.3% for year of 2015. Business Review During the year ended 31 December 2016, revenue from wireless telecommunications coverage system equipment and the provision of related engineering services was approximately RMB1,379.6 million, representing approximately 86.9% of the Group’s total revenue. During the year ended 31 December 2016, revenue from private telecommunications network systems and products was approximately RMB202.4 million, representing approximately 12.8% of the Group’s total revenue. During the year ended 31 December 2016, revenue from digital television network coverage equipment and the provision of related engineering services was approximately RMB5.2 million, representing approximately 0.3% of the Group’s total revenue. Wireless Telecommunications Network Coverage & Optimization Solution In 2016, wireless telecommunications network coverage & optimization solution business remained the major source of revenue for the Group and contributed revenue of approximately RMB1,379.6 million, representing approximately 86.9% of the total revenue of the Group. Its revenue represents a decrease of approximately 0.2% as compared to that for the year ended 31 December 2015. China’s 4G network has a comprehensive development in 2016. The high-tech telecommunications service has deeply affected the daily life and of great relevance to government administration and commerce, thus playing an important role in policy-making for social welfare. Catering to the increasing demand for various mobile internet applications arising from the popularity of 4G technology, telecommunication operators invested a lot of resources in the construction of network to improve the quality of life with the use of information. The Group recorded more or less the same level in revenue from wireless telecommunications network coverage optimization solution for the year ended 31 December 2016 as compared to that of the previous year. During the year ended 31 December 2016, the Group continued to adjust its product mix to promptly satisfy the needs of telecommunication operators for 4G products. Particularly, products like multi-mode digital signal distribution system, high-performance radio frequency devices and multi-mode multi-frequency indoor distribution solution products, that are compatible with different network operators’ specifications, remained in high demand and maintained relative high profit margin, making a major contribution to the results of operations. The Group will keep up with the latest developments by paying close attention to the development of the industry and leverage on its key products to participate in integrated engineering and construction services in connection with 4G network coverage and optimization in major cities throughout China. Private Telecommunications Network Systems and Products In 2016, the Group recorded revenue from the private telecommunications network systems and products of RMB202.4 million, representing approximately 12.8% of the Group’s total revenue. Its revenue represents an increase of approximately 38.7% as compared to that for the year ended 31 December 2015. Private telecommunications network is a necessary supplement to public telecommunications network, playing an irreplaceable role in public security, police, power generation, railways and other sectors. In the background of current national policies and market growth, the development of digital private telecommunications network is an irreversible trend, as evidenced by the promotion of digital private telecommunications network systems by government authorities such as the Ministry of Industry and Information Technology as well as major manufacturers within the industry. Consolidating the peculiarities of the industry, relying on the capitalization of the Group’s outstanding research, development and production capability of private telecommunications network technology and emphasising on specialized and customized services, the Group continued to launch and update a series of market-oriented digital cluster system products such as digital repeaters, dispatch centers, new models of mobile base stations and smart monitoring platforms for both commercial private network users and industry private network users. To provide quality services during the year ended 31 December 2016, the Group continued with the parallel sales of analog and digital interphones while strengthening the promotion of digital private network systems and products by taking advantage of the existing economies of scale. Since specialized digital interphone is the primary end product of the private network industry, the Group will continue to invest in its sales network and channels as well as to invest in the development of digital and information based products that integrated the Internet and industry private networks including energy grids, public security and the judiciary, aiming to offer comprehensive digital system engineering solutions of private telecommunications network. Prospects: According to the trend of informatization and internetization of global society and economy, the development of information economy and internet economy has become the key to the success of competition. The information communication industry, with its ever-changing technology and explosive development, has penetrated into every aspect of the national economy, becoming one of the promoting forces for rapid economic development. Wireless Telecommunications Network Coverage & Optimization Solution The accelerating construction of 4G network by telecommunication operators, along with the explosive development of “Internet plus”, has facilitated the in-depth integration of the Internet and various industries. The national “Internet plus” action plans require the full coverage of 4G network in China by 2018, expediting the fast development of 4G industry and opening a critical time window for telecommunication operators to strengthen their 4G business. The telecommunication services of the Group therefore have to keep up with the development trend of the industry. Based on its sound network coverage technology, the Group will maximize its advantages on network optimization, indoor signal coverage as well as the building network coverage engineering resources accumulated over the years to steadily develop multi-mode digital signal distribution systems, multi-mode and multi-frequency indoor signal distribution solutions that are compatible with TDD-LTE/FDD-LTE and outdoor coverage optimization solutions, thus improving its service quality and coping with challenges of 4G business. The telecommunication industry has met with cross-sectors cooperation and product policy adjustment following the further informatization of global economy. Taking into consideration the enormous social demand for informatization, telecommunication equipment manufacturers and network service providers have further expanded their cross-sector cooperation in order to achieve industry integration and transformation. Riding on the trend of broadband and informatization, the Group may adjust its business operating model including the participation in network operation business. Private Telecommunications Network Systems And Products The Ministry of Industry and Information Technology publicly announced that the term of validity of the approval certificate for 400MHz analogue interphone device models could be extended to 31 December 2017 upon application. 2017 will be a key year for fully digitized private telecommunications network industry. The frequent occurrence of global terrorist attacks and the increasing attention to government and public security, social stability, disaster rescue and relief and emergency communications in addition to the increasing number of large-scale activities and infrastructure constructions attributable to rapid economic development, will boost the growth of digital cluster private network. Spectrum resources open to particular industries will also promote the development of digital private network communication, thus highlighting the importance of telecommunication security technology in relation to “Internet Plus”, smart city and the construction of industry-wide internet of things. Riding on its mature sales network, the Group will promote the long-term horizontal and vertical development of its private telecommunications network solutions by leveraging on its efficient communication channels, leading technology, and establish the relationship with the authorities for managing spectrum resources. The Group has extended its end products to system products, self-developed commercial products and Advanced Radio Communication system which will soon be launched in the public specialized market. The Group will also consider to adopt various operating models, promote the application of cluster system products in the projects of smart city and internet of things, and input more resources of R&D and market development on system products.

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