MOBI Development Co., Ltd. Provides Earnings Guidance for the Year Ended December 31, 2020
February 05, 2021 at 10:34 am
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MOBI Development Co., Ltd. provided earnings guidance for the year ended December 31, 2020. For the period, the company expects to record a decrease of over 80% in its unaudited consolidated net profit for the year ended 31 December 2020 as compared to the corresponding
period in 2019. The decrease in the Group's net profit was primarily attributable to the following reasons: Due to the impact brought upon by the COVID-19 pandemic at home and abroad, the need for mobile network construction in certain countries and regions has slowed and payment of
certain project income has been delayed, in addition, due to the slower-than-expected progress
of 5G network construction in the PRC, the bidding for relevant projects of operators has also
been delayed; and in order to prepare for the launch of 5G network and vertical application of the projects, the Group has deployed more R&D resources and initiated a substantial number of new projects, resulting in a significant increase in R&D expense. Furthermore, as the Group uses USD as its key currency for export settlement, the significant depreciation of US dollars against RMB since mid-2020 led to a substantial increase in exchange loss.
MOBI Development Co., Ltd. is an investment holding company principally engaged in the manufacture and sales of wireless communication antennas and base station radio frequency subsystems. The Company mainly operates through three segments. The Antenna System segment is engaged in the manufacture and sales of antenna systems and related products. Its antenna products include smart antennas, microwave antennas and repeater antennas, among others. The Base Station Radio Frequency Subsystem segment is engaged in the manufacture and sales of base station radio frequency subsystems and related products. Its radio frequency products include duplexers, filters, couplers and drives, among others. The Coverage Extension Solution segment is engaged in the manufacture and sales of coverage products. The Company operates businesses in China, Thailand, Japan, Canada, Mexico and Russia, among others.