TURNOVER INCREASES 52.5% TO RMB 564 MILLION
NET PROFIT GROWS 56.8% TO RMB 83.4 MILLION
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3G BUSINESS STEP INTO HIGH GROWTH PERIOD

Mr. Dai Guoliang, Chairman of Centron Telecom, said, “Benefiting from the strong demand of 3G market, we are pleased to see each of business segments of the Group recorded satisfactory growth, leading to a significant improvement in the results when compared with the corresponding period last year. ”
 
Wireless coverage market
 
During reporting period, revenue from 2G and 3G networks was approximately RMB 562 million, representing approximately 99.7% of revenue.
 
With the successful restructuring of and the grant of 3G licences to the three largest mobile operators in the Mainland China, the telecom market has entered into an era of expansion in network building. In the next three years, the total investment spent by China’s major telecom operators on three separate nationwide 3G telecommunication networks, improvement of the current 2G and 2.5G networks and continued efforts to provide coverage to every village in the rural areas will exceed RMB400 billion. The market potential is huge.
 
The Group will launch a dozen new wireless coverage equipments with strong demand and higher margins in the second half of the year. These include the new generation of digital and optical fiber broadcast stations, coverage equipment with ICS anti-isolation technology, new wireless and tower mounted amplifiers and high-efficiency indoor coverage systems. The launching of these new products shall gradually replace products of relatively lower margins to enhance competitiveness.
 
Overseas market

Last year, the Group secured a contract for nationwide mobile communications network coverage project of approximately US$18 million from a telecom operator in Laos through tender. Currently, the project is still under construction and we have not booked the revenue in the review period. During the first half of 2009, the Group has also received new orders from Vietnam, Nepal and Philippines.
 
New Business Initiatives
 
The Group unremittingly develop new products and new markets to capture opportunities in China and overseas markets. During the period under review, the Group has remarkable development in wireless connection system and wireless broadcasting products.
 
Currently, the Group has completed the R&D and trial production of most products of wireless connection system, and has commenced construction of two trial networks in Shaanxi and Fujian Provinces. Following the approval of the trial run, this business segment will become another new area for growth. Wireless connection system products include base stations, signal coverage equipment and visual telecommunication networks.
 
Another new business development focus of the Group is wireless broadcasting business, which is an integral part of the establishment of mobile telecommunication network and has huge market potential. At present, there are only a few enterprises engaging in the development and manufacturing of such products. The Company began its R&D in the second half of last year. In the first half of this year, all R&D and trial production have been completed. Currently, our self-developed microwave point-to-point distant transmission equipment is under trial run in the mobile telecommunication network of various regions. Once the trial run networks have been completed, this business will be one of our new growth drivers.
 
New processing and manufacturing facilities
 
A processing centre was built last year for the production of major parts of the Group’s products. The facility has been under operation in the review period. In the second half of the year, the Group will enhance the utilisation rate of the related equipment and focus on producing high-end products. The new facility helps to reduce our production cost and increase our competitiveness.
  
“The major markets that the Group focuses on are all of high growth potential.  We are confident that we will be able to increase sales and market share, thus deliver higher shareholders’ value by taking advantage of the market opportunities, improving productivity and implementing our diversified sales strategy efficiently.” Mr. Dai concluded.