Singapore, 4 January 2023 ─ Comba Telecom Systems Holdings Limited (“Comba”, or the “Company”, HKSE stock code: 2342), a global leading wireless solutions provider with its own research and development (“R&D”) facilities, manufacturing base, and sales and service teams, is pleased to announce that it will successfully list on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”) by way of an introduction (the “Introduction”, or the “Secondary Listing”), under the stock code “STC” today at 9.00 am Singapore time.
Comba currently has a primary listing on the Hong Kong Stock Exchange (“HKSE”) and will continue to be listed and traded on the HKSE following the completion of the Introduction. Based on the closing market price of the Company’s share quoted on the HKSE on 3 January 2023 of HK$1.38, Comba has a market capitalisation of approximately HK$3.836 billion. The Company has been included in the Hang Seng Composite SmallCap Index and Hang Seng Composite Industry Index – Information Technology since September 2020.
Mr. Fok Tung Ling (霍东龄), Chairman of Comba said, “The Secondary Listing allows Comba to access the securities market in Singapore and to develop the Group’s presence in such market. The Company believes that the Secondary Listing will broaden its shareholder base as well as fundraising channels for the future, which is in turn conducive to the promotion of the Company’s corporate image and enhancement of the liquidity of its securities in the long run.”
UOB Kay Hian Private Limited acted as the issue manager in relation to the Introduction. The shares of Comba are traded on the HKSE in Hong Kong dollars, and will be traded on the Mainboard of the SGX-ST in Singapore dollars.
A Global Leading Wireless Solutions Provider
Comba’s legacy dates back to 1995, with the company establishing its presence as a provider of wireless and information communications systems. The Company's core product portfolio includes network related products, with its end-to-end wireless solutions being deployed worldwide, including shopping malls, airports, sports stadiums, public service buildings, and telecom operator headquarters.
The Company has a geographically diverse customer base of over 1,300 customers globally, which includes major telecommunication operators such as Vodafone, Ooredoo, Airtel, Telenor, China Mobile, China Telecom, China Tower, China Unicom as well as other major global telecommunication equipment providers.
End-To-End Wireless Solutions Provider with own R&D Facilities, Manufacturing Base, and Sales and Service Teams
Comba has a strong and experienced R&D team that engages in researching and developing new technologies and products and supply chain systems at its R&D headquarters in Guangzhou Science City. The Company owns 5,500 patents globally, with approximately 900 patents under application. Comba will continue to enhance its R&D capabilities to ride on trends and business opportunities arising from the digitalisation of the telecommunications industry.
The Company currently operates two manufacturing bases located in the Guangzhou Economic and Technological Development District as well as in the China-Singapore Guangzhou Knowledge City.
The Company has more than 30 offices in China and more than 10 overseas offices globally, across the Asia-Pacific, Middle East, North Africa, Europe, Caribbean & Latin America, India, the U.S. and more, providing products and services in more than 100 countries and regions.
Innovative Green Design and Green Manufacturing
With the focus on green initiatives and products, and through the innovation capabilities of Comba’s R&D team, Comba has been able to introduce green initiatives across product lines and supply chains to meet the increase in demand from its customers.
Comba strives to build a green industry supply chain by reducing the carbon footprint and environmental pollution in the manufacturing process and realise sustainability throughout the life cycle of the antenna.
Comba has also launched the “green and innovative antenna and subsystem solution” with lower loss rates and higher efficiency by promoting innovation in response to the national low-carbon and environmental protection strategy, and the low-cost network construction philosophy of operators.
For the first half of 2022 ended 30 June 2022 (“6M2022”), the Company reported a 25.8% increase in revenue compared to the six months ended 30 June 2021 (“6M2021”), mainly attributed to the Company’s successful tender for centralised procurement of antenna related products from major telecom operators in China in the second half of 2021 and completing the phased launch and delivery of these projects on schedule in 6M2022. Coupled with effective cost control measures, the Company reported a total profit of HK$58.7 million for 6M2022 and declared an interim dividend of HK1 cent per share.
In recent years, business in the Asia-Pacific (“APAC”) region has developed rapidly, and the Company sees an increase in business opportunities in the region. To support the development of business in the region, the Company intends to increase its resources in Singapore and its surrounding regions, and to establish Singapore as an important hub in the APAC region.
The Company is also preparing for a spin-off and separate listing (“Proposed Spin-off and Listing”) of Comba Network Group on the SSE Sci-Tech Board. This is expected to provide the Comba Network Group with a variety of benefits, including unlocking its hidden value and increasing its own brand image.
As at the Latest Practicable Date1, Comba indirectly holds approximately 79.44% equity interest in Comba Network. The Comba Network Group is principally engaged in the manufacture and sale of wireless telecommunications network system equipment and provision of related engineering services. It currently focuses on R&D, manufacture and sale of network system products, including macro cells, small cells, related extended & in-depth coverage solutions and Open RAN products as well as providing network solutions for the 5G vertical industry. It is expected that Comba Network Group will remain as a subsidiary of the Company after the Proposed Spin-off and Listing.
1 16 December 2022
The development of mobile communication wireless networks has gained momentum in recent years, driven by an advancement of 5G technology and an increased emphasis on low carbon emission and environmental protection. 5G technology has been widely recognised to be the big leap in mobile and wireless communications as it, with its features including full coverage, low latency, high capacity and high reliability, helps enable the development of new business models and advanced applications and fosters business innovation in areas such as urban mobility, smart estates, industry 4.0 and consumer applications.
The Company expects to see continued strong demand for its products and services from operators constructing indoor 5G networks globally and to seize more opportunities arising from the development of these indoor 5G networks by operators to promote in-depth integration with various industries.
As China adopts low-carbon environmental protection as a national strategy, there is an increase in demand from the three largest telecommunication operators in China for more energy efficient green antennas and integrated high-power base stations to extend coverage.
This is made possible through design, material and process innovation along the product value chain, leading to an increase in coverage distance of traditional antennas in the low and medium frequency band utilising the same feed power. Similarly, there is also an increase in demand from telecommunication operators globally for low-carbon environmental protection antenna and low-cost network construction.
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About Comba Telecom Systems Holdings Limited
Comba Telecom is a global leading wireless solutions provider with its own R&D facilities, 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 centres 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 been included in the Hang Seng Composite SmallCap Index and Hang Seng Composite Industry Index - Information Technology. For further information, please visit: www.comba-telecom.com.
For further information, please contact:
Citigate Dewe Rogerson Singapore
Chia Hui Kheng / Jass Lim / Vaylor Tan
Tel: +65 6534 5122 (Office hours)