Powering growth - Aztech Group Ltd - Investor Relations
Powering growth - Aztech Group Ltd - Investor Relations Powering growth - Aztech Group Ltd - Investor Relations
12a z t e c h a n n u a l r e p o r t 2 0 0 9o p e r a t i o n s r e v i e wAztech products at one of Singapore’sleading retailer, Challenger Superstore (FunanDigitaLife Mall)State-of-the-art manufacturing facilities at our factory in Dong Guan, ChinaWith 23 years of experience in the electronicsbusiness, Aztech has built a strong reputationfor its OEM/ODM, Retail Distribution andContract Manufacturing business in thebroadband, home networking and LED lightingproducts.In FY2009, the electronics sector continued to be the main revenuecontributor to the Group’s revenue with S$180.10 million (representing64.3% of Group Revenue). Grounded with strong operating fundamentals,we were able to mitigate the impact of the adverse operating environmentand remained profitable.We were able to sustain our performance largely because of our teamof competent and committed staff and the set of measures that wereimplemented.Focusing on Profitable MarketsOEM/ODMAztech continued to work closely with telecommunications companies andInternet Service Providers (ISP) on the manufacturing of ADSL modems.Particularly, in Singapore, we supplied to the largest telco, SingTel, our4-port ADSL modem (Aztech DSL1000ER) for their very successful mioTV package that allows home users to watch video via Internet ProtocolTelevision (IPTV).Contract ManufacturingContract manufacturing is a key part of our electronics business. Whensecuring manufacturing contracts for Aztech ADSL, 3G to Wireless Routersand HomePlugs, we looked to find products that require higher valueaddedmanufacturing and tap on our state-of-the-art manufacturingfacilities, as this enabled us to yield a better profit margin. Sustaining ourexisting working relationship with Etisalat (UAE), SingTel (Singapore), GlobeTelecom (Philippines) and TTNet (Turkey) was also our top priority.Aztech Brand ProductsAztech products reach more than 30 countries worldwide, with Europe,USA and Asia Pacific constituting the largest markets. In the year, tocounter the depressed prices for electronic products in the recessionstruckcountries, we focused our efforts on selling Aztech brand productsthrough our distributors in markets such as Singapore, Malaysia, HongKong, Thailand, Vietnam, Pakistan, Sri Lanka, Saudi Arabia, UAE, Turkey,Israel and Latin America. This strategic move enabled us to leverage on thegrowth of these markets to broaden our customer base as well as provideus with better profit margin.Complementing this strategic move, the marketing efforts in thesecountries were intensified to create greater brand awareness. Oneexample of the marketing activities was the sponsorship of events targetedat tertiary students, who are potential customers deciding on the purchaseof home networking and broadband devices.Notably, our HomePlugs which allow users to transfer data via powerlineand our 3G Wireless routers were very popular as more users seek tocreate and share their own WiFi hotspot when they are outdoors.
o p e r a t i o n s r e v i e wa z t e c h a n n u a l r e p o r t 2 0 0 913High-speed SMT LineLight Spectrum AnalyserAztech products at Harvey Norman store inKuala Lumpur, MalaysiaProduct AccoladesIn the year, our simplified Aztech HW550-3G Wireless-N Mobile BroadbandRouter received many awards and good reviews with its user-friendlinessand compatibility with 3G/3.5G USB modems in the market. Somecomments and accolades included:“3G sharing… It’s a great concept. Do get one if you can.” - PC.comRecommended Award“The Aztech HW550-3G is simply a fantastic device; it will be tough tofind something as flexible and as powerful” – MAX IT Magazine Max ValueAward“We love the Aztech HW550-3G wireless router for its ability to supportmobile HSPA modem.” – CHIP Magazine Recommended Award“Aztech came in at the right time with a proper 3G USB broadband routerthat everyone has been eyeing for.” - OC Workbench Best Value AwardOther products launched in the year include:• Aztech HL110E: World’s First Eco-friendly 200Mbps HomePlug AVEthernet Adaptor• Aztech HL106E – World’s Smallest 85Mbps HomePlug TurboEthernet AdaptorLED LightingTowards the end of the year, we ventured into the design and manufactureof energy-saving, long-lasting and eco-friendly LED lighting products.The move for Aztech’s new subsidiary, AZ E-lite Pte Ltd to design andmanufacture LED lighting equipment – named Aztech LED Luminaries –is driven largely by the bright potential LED lighting has on both thebusiness and natural environments. According to market research, LEDlight presents a lead market advantage in the next 5 years as it replacesincandescent lighting progressively by 2016. As part of our R&D efforts,we have invested in a Light Spectrum Analyser to analyse the amountof light from light source, as well as analyse colour rendering and powerrequirement of the light fitting.Meeting our Customers’ NeedsAlthough ADSL products continue to be Aztech’s best-selling product forOEM/ODM and many telcos and ISPs continue to use Aztech’s design, wesought to stay ahead of the market demands through our Research andDevelopment (R&D) efforts.Riding on the increasing adoption rate of Next Generation Network (NGN) inmany countries, the Group embarked on fibre optic modem development incollaboration with Agency for Science, Technology And Research (A*STAR).The research collaboration seeks to develop a 2.5Gbps Gigabit PassiveOptical Network (GPON) system for the Next Generation Fibre-To-The-Home (FTTH) Network, which will greatly enhance our core capabilities inbroadband and home networking products.
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o p e r a t i o n s r e v i e wa z t e c h a n n u a l r e p o r t 2 0 0 913High-speed SMT LineLight Spectrum Analyser<strong>Aztech</strong> products at Harvey Norman store inKuala Lumpur, MalaysiaProduct AccoladesIn the year, our simplified <strong>Aztech</strong> HW550-3G Wireless-N Mobile BroadbandRouter received many awards and good reviews with its user-friendlinessand compatibility with 3G/3.5G USB modems in the market. Somecomments and accolades included:“3G sharing… It’s a great concept. Do get one if you can.” - PC.comRecommended Award“The <strong>Aztech</strong> HW550-3G is simply a fantastic device; it will be tough tofind something as flexible and as powerful” – MAX IT Magazine Max ValueAward“We love the <strong>Aztech</strong> HW550-3G wireless router for its ability to supportmobile HSPA modem.” – CHIP Magazine Recommended Award“<strong>Aztech</strong> came in at the right time with a proper 3G USB broadband routerthat everyone has been eyeing for.” - OC Workbench Best Value AwardOther products launched in the year include:• <strong>Aztech</strong> HL110E: World’s First Eco-friendly 200Mbps HomePlug AVEthernet Adaptor• <strong>Aztech</strong> HL106E – World’s Smallest 85Mbps HomePlug TurboEthernet AdaptorLED LightingTowards the end of the year, we ventured into the design and manufactureof energy-saving, long-lasting and eco-friendly LED lighting products.The move for <strong>Aztech</strong>’s new subsidiary, AZ E-lite Pte <strong>Ltd</strong> to design andmanufacture LED lighting equipment – named <strong>Aztech</strong> LED Luminaries –is driven largely by the bright potential LED lighting has on both thebusiness and natural environments. According to market research, LEDlight presents a lead market advantage in the next 5 years as it replacesincandescent lighting progressively by 2016. As part of our R&D efforts,we have invested in a Light Spectrum Analyser to analyse the amountof light from light source, as well as analyse colour rendering and powerrequirement of the light fitting.Meeting our Customers’ NeedsAlthough ADSL products continue to be <strong>Aztech</strong>’s best-selling product forOEM/ODM and many telcos and ISPs continue to use <strong>Aztech</strong>’s design, wesought to stay ahead of the market demands through our Research andDevelopment (R&D) efforts.Riding on the increasing adoption rate of Next Generation Network (NGN) inmany countries, the <strong>Group</strong> embarked on fibre optic modem development incollaboration with Agency for Science, Technology And Research (A*STAR).The research collaboration seeks to develop a 2.5Gbps Gigabit PassiveOptical Network (GPON) system for the Next Generation Fibre-To-The-Home (FTTH) Network, which will greatly enhance our core capabilities inbroadband and home networking products.
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