| Our principal objectives are to strengthen our
position as a leading provider of wireless coverage solutions in
China, to reinforce our leading position in the research and development
of RF technology in China, to actively commercialize our in-house
RF technology by continuing to expand our product breadth and to
seek more market opportunities outside China. At present, we intend
to achieve these objectives by implementing the following strategies:
Increase market share with our existing
customer base
We intend to further increase our market share and consolidate our
leading position in the PRC wireless coverage market by strengthening
our relationships the China Unicom group and the China Mobile group,
as well as with other customers such as the China Telecom group
and the China Netcom group. In order to implement this strategy,
we intend to expand our product range, enhance our project design
and technical services, further extend our sales network in China
and further improve our service quality by investing in equipment
and increasing our customer service personnel headcount. Our sales
team will continue to build relationships with local affiliates
of the China Unicom group and the China Mobile group with whom we
currently do not have relationships. In addition, we will continue
to pursue PHS network related projects as well as other wireless
coverage opportunities with the China Telecom group and the China
Netcom group.
Continue to invest in 3G technology development
in order to exploit 3G opportunities
We believe that, if 3G licenses are issued in China, there is a
likelihood of significant capital investment by PRC telecommunication
operators to build 3G digital communication networks rapidly. We
intend to continue to invest aggressively in 3G technology to compete
for network coverage projects. Since February 2004,we have been
researching and developing 3G products and to date have already
completed our research and development and network application testing
for certain major 3G network coverage equipment. We believe that
our strong research and development capabilities, established reputation
and existing network of coverage products across China will position
us to be a major recipient of 3G network coverage contract awards.
Continue to increase our RF product offerings
and external sales effort
We design and manufacture a comprehensive line of RF products which,
until recently, have been utilized for internal consumption. In
2003, we began selling a small portion of our RF products to telecommunication
equipment manufacturers and other providers of wireless coverage
solutions. In the past, our China-based customers procured their
RF products from international manufacturers and other local manufacturers.
While we expect to continue to consume a substantial portion of
our RF products internally, we plan to increase the sale of RF products
to third-party buyers, especially base station manufacturers. We
plan to expand our market reach by strengthening our sales and marketing
program for our RF products and by leveraging our RF technology
expertise to market superior RF products to these customers.
Capture more business opportunities by
the development and market launch of innovative wireless access
products using leading technology applications
We intend to utilize our RF technology expertise to develop new
wireless access products to capture potential business opportunities
that may emerge in the wireless communication industry in China.
We have already developed a number of new products including W-LAN
and 5.8GHZ wireless access equipment. We sell these system products
to telecommunication operators, including the China Unicom group
and the China Mobile group, and institutional users such as large
corporations and universities. We have been doing extensive research
and development on RF integrated circuits and multiple chip module
technology and believe that our efforts will enable us to develop
and market innovative wireless access products. RF integrated circuits
products are integrated circuits that perform the same functions
as RF parts and components. RF integrated circuits will be further
integrated into multiple chip module components to produce next
generation RF parts and components, multiple chip module components
are substantially more compact in size than current forms of RF
parts and components. We intend to leverage our research and development
capabilities in RF technology to continue to improve the quality
of our existing portfolio of wireless access products and to develop
and produce additional wireless access products, including products
using broadband wireless access technologies such as WiMAX, or worldwide
interoperability for microwave access. We believe that the continued
growth of the PRC telecommunication industry will create new opportunities
for our wireless access products.
Expand our global customer base
We intend to expand the sales of our network coverage solutions
and RF products overseas in a measured and careful manner. Our strategy
is to utilize our domestic reputation, existing nationwide presence
and cumulative experience in new products development, project design,
installation and servicing to create new customer channels internationally.
We recently established a sales office in Indonesia and agency relationship
in the Philippines, and we believe that our product quality and
low-cost base should provide us with a competitive advantage in
these markets. Additionally, we have sold a limited amount of wireless
network coverage equipment to a telecommunication equipment manufacturer
in South Korea. We have also formed partnerships with distributors
in Indonesia and the Philippines. We will remain attentive and flexible
in our overseas expansion efforts and will pursue sales arrangements
through a combination of original equipment manufactures, direct
sales, agencies and distributors.
Maintain RF technology leadership by continuing
to invest in technologies that enhanced our primary products
We intend to continue solidifying our RF technology leadership by
investing in key research and development efforts that complement
or facilitate commercial application of our RF technologic. Examples
of key initiatives include module miniaturization using RF integrated
circuits and multiple chip module technology. We have also been
investing in research and development in the power, efficiency and
linearity of power amplifiers and low wastage and high selectivity
filters that further improve the performance of RF parts and components.
We will also continue to invest in our research and development
infrastructure by seeking to recruit and retain high-caliber research
and development professionals and by acquiring advanced research
and development equipment.
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