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The development plan of the Group for the coming five years still focuses on the growth of the four major business segments, namely, digital cable television, wireless digital television valueadded services, information safety technology business and wireless digital audio products business. In response to the general market and capturing the opportunity brought from the “three networks integration” policies introduced by the State Council in January 2010, the Group has made a transition from the wireless television operation to the digital cable television operation in the past years. The accelerating urbanization and the increase in personal consumable income of the PRC residents have created stable demand for the digital television market. As a result, the demand and sale price of data transfer cables which are required for the Group to develop its last-mile network infrastructure, have been increasing significantly. The acquisition of 25% of the issued share capital of Xinmu will create synergy effect to the Group’s existing businesses in terms of accessing to a stable source of supply of high quality data transfer cables at a reasonable price. The disposal of Beijing Zhongguang can allow the Group to focus its resources, apply the proceeds from the disposal on its principal business of cable television and wireless digital television valueadded services, and improve the financial strength of the Group. Based on the current progress of the network construction of the Group, it shall be expected to complete the construction of a network for approximately 1.4 million basic cable television broadcasting subscribers and 300,000 value-added cable television broadcasting subscribers, and the installation of 12,000 electronic advertising display panels in the contracted regions in 2013. Moreover, the management expects to sign contracts with approximately 3 million new televisions broadcasting subscribers, generating a promising growth in profit and long-term value for the Group. The Group has won the bid and will deliver 10,000 units of MOCA core network devices and approximately 50,000 units of MOCA terminal in the coming two years. The Group has formed a partnership in Ningxia for entering the MOCA market. In Liaoning, the Group has made a breakthrough in market expansion, having sold devices with aggregated value of millions of dollars, and expects to achieve a further breakthrough in the future. The Group’s profit will be significantly benefit from the cooperation of China Mobile and the television broadcasting operators under three networks integration in the future. As low frequency technology was used by the television broadcasting operators in prior years, only high frequency technology can be used under the cooperation of China Mobile and the television broadcasting operators.Therefore, the sales of MOCA will increase to a greater extent.  

 

For the telecommunication business, the Group, aiming at capturing more market shares and building a new profit driver, commenced to arrange its human, material and financial resources for the development of its own products and joint production with foreign manufacturers to meet the demand on solution products for mobile internet and FTTH projects from three major telecommunication operators, namely China Mobile, China Telecom and China Unicom.

 

For the wireless digital audio products business, orders for mass production from new projects had been secured in respect of the fourth quarter of 2012. It is expected that the Group can greatly expand its market share. Among all, Apple accessories project is a highlight to the Group’s business growth. The Group has been planning to explore the domestic market to expand the domestic market share before there is any greater impact on the export market, and has achieved remarkable results in terms of market shares and sales volume, which will be a great start for the domestic sales market. The Group will strive to enter into new consumer and automotive electronics markets in order to bring a new and rapid profit driver for the Group.

 

 

In the next three years, the Group will definitely continue to promote, upgrade and develop the Group’s technological knowhow gained throughout these years, and to identify customers’ new demand and new customers. These are all essential to the sustainable growth of the Group.