Good morning, ladies and gentlemen. On behalf of Comba Telecom Systems Holdings Ltd, I would like to welcome all of you joining today, 2021 interim results investor presentation video conference. Today, there will be a presentation followed by a Q&A section. In the Q&A section, for investors who are interested in raising questions, please click on the raise hand button located at the bottom of the screen in your Zoom. [Non-English content] May I now take this opportunity to introduce the senior management joining us today, and they are from Hong Kong and Guangzhou. [Non-English content] They are the Chairman, Mr. Fok Tung Ling. [Non-English content] From Guangzhou, we have the Executive Director and President of the Group, Mr. Xu Huijun. [Non-English content] The Executive Director and Group CEO, Mr. Ken Chang. [Non-English content] The Executive Director and Senior Vice President of the Group, Mr. Huo Xinru. [Non-English content] May I now pass the floor to Mr. Ken Chang, the Executive Director and Group CEO, CFO, to present the financial highlights for the first half of 2021. [Non-English content] Mr. Cheung, please. Good morning, everyone. Thank you for joining Comba first half 2021 results meeting. First of all, let me illustrate our first half result on the headline number. The revenue in the first half of 2021 is HKD 2.42 billion, which was up by 8% year-on-year. Basically, all business segments except antenna went up. Particularly, we have seen our overseas market has been up strongly. Overseas market is roughly about 35% of total revenue and including our ETL revenue is up by about 26% year-on-year. The revenue on mainland, which is about 65% of the total, in RMB term is down by 7.8%, and in Hong Kong dollar term is flat. Gross profit is down by HKD 45.6 million at HKD 681 million. Gross profit margin down by 4.3 percentage point to 28.2% because of two reasons. First is the raw material cost has been increasing, and second of all is because of the COVID situation has been persistent. A lot of our operating related COGS, for example, like transportation, flight cost, has been increasing. Also, the operating loss at the first half is HKD 72.5 million. Income tax at HKD 26.9 million. The loss attributable to shareholder is HKD 89.3 million, which was down from a profit the same period last year. The loss is affected by two reasons. First of all, because the gross profit was down, and second, the OpEx was up, which I will explain in the later slide. Okay. Let's look at the OpEx. The OpEx as a percentage of revenue is about the same as last year, at around 35.9%. Basically, all operating costs have come down except selling expenses and R&D expenses. For example, finance cost has been down by 48.1% because as in general, market interest rate has come down, and we have a better balance on the loan portfolio. Second is income tax has been down by 31.2%. Other expenses, because of the decrease in the provision of accounts receivable, the other expenses was down by 8.9%. Admin expenses, because of the increase in the operating efficiency and the tighter cost control, admin expenses was down by 7.6%. Selling expenses was up by about 21%. This is because we increased the respective sales and distribution expenses and channels to strengthen the business development. Last of all, the R&D expenses is up by around 47.4%. This is because as the 5G technology enter the stage of in-depth development, the prospect of new application scenario and models are promising, and we are increasing the R&D expenses on those areas. Let us look at our balance sheet item. Net cash is HKD 559 million, which was up by HKD 37.8 million. Total asset at HKD 11.2 billion, up by 3.1%. Total liability, HKD 6.6 billion, up by 4.9%. Net asset is HKD 4.1 billion, up by 1.2%. NAV per share is HKD 1.50 per share. If we look at our turnover day, basically inventory turnover day, AR turnover day, as well as AP turnover day have come down. Although, if we look at the absolute number on inventory, as well as account receivable, we have seen some increase year-on-year. On the inventory side, we are actually building more as we have won some centralized procurement on antenna, which will lead us a recovery in the antenna business, particularly in the second half. As a result, on those inventory, we have been building up. In spite of this, the inventory turnover day has come down. As well, I think we have a better AR turnover as well as AP turnover day. As a result, the cash conversion cycle is still at a healthy level at around 34 days. Gross gearing ratio is 12.4%. It's down by 1.1%, compared with one year ago. Debt to asset ratio is around 59%. If we look at our interest-bearing debt and gross gearing ratio, we have seen our billing ratio at basically the lowest level over the last five years at about 12.4%. Right now, our finance cost as a percentage of interest-bearing debt is around 1.5%, and compared with a year ago, it's about 2.5%. This is because we have a better loan portfolio between Mainland China and Hong Kong, as well, we have a better balance on long-term as well as the short-term debts. Let us look at our revenue by customers. The three major operators account for about 35% of total revenue, which was down by about 8.9% year-on-year. China Tower account for about 8.9% of total revenue, which is up by 24.2%. International revenue has become the major driver, which was up by about 12.12% year-over-year. Other customers, particularly, the other customers like the ETL, which account for 4.3% of our total revenue, is up by 34.2%. The only segment which was down is China Mobile, in our customer segment. Later on, we will explain that we have recently won the centralized procurement, and we would be seeing a more promising recovery later on. Business segment, revenue divided by business, we have seen that all the business segment except antenna have all gone up. First of all, our network system has gone up by 27.3% year-on-year. If we look at the mainland domestic market versus international market, we actually have seen the international market side, which account for roughly about 36% of network system segment, which was up by about 82.9% year-on-year, becoming the major driver to drive the network system, to produce the growth in the first half of the year. The service sector increased by about 14.5%. Wireless transmission, which is up by about 24.7%. Antenna segment, which was down by about 13.4%. Again, if we look at the breakdown between the Mainland China market as well as international market, we have seen international market actually has gone up by about 12%. So this is our financial net profit and loss for the last 10 years. Currently, I would like to say that our financial position has been sound and healthy. Second of all, at the end of June, we also have won some centralized procurement which should be producing more promising results for us in second half of the year. And from now, time for our President, Xu Hui Jun. He will further explain on the as well as on the business segment. Thank you. Thank you. Thank you Ken for the presentation. Now may I now invite Mr. Xu Huijun, the Executive Director and President of the Group to present the industry development and company outlook. [Non-English content] [Non-English content] Thank you Mr. Xu for your presentation. [Foreign language]
Loading workspace