Alpha Networks Continue Strengthen Technology and Channel Development in Key Business Areas

Major network communication manufacturer Alpha Networks (TWSE:3380) hosted an institutional investor conference today (March 8) to announce last year's financial report. For 2021, the company reported annual consolidated revenues of NT$27.862 billion, down 13.4% from the same period in 2020. The decline was attributed to persistent material shortages during 2021. The gross profit margin of 16.5% was 0.9% higher than the previous year. Changes in the mix of product sales helped boost gross margins. Operating profits amounted to NT$710 million, NT$188 million less than the previous year, and the operating margin was 2.5%. Net income after tax was NT$540 million with NT$434 million being attributed to the parent company. Earnings per share was NT$0.80.

According to Chairman April Huang, the increase in product ratio of Alpha Networks’ MAN products from 27% to 32% was due to it being less affected by material shortages. Shipments remained steady, so its share of the overall business grew compared to other lines. Growth in data traffic from AI, big data and other trends also boosted the requirements for transmission speeds. The resultant surge in data centers’ network investments is expected to produce steady growth in overall revenues from switches this year; in terms of wireless broadband products, despite a decline in product revenue due to material shortages, its product ratio also increased from 43% to 46% compared to 2020. This year, 5G and private network products will be added to the existing portfolio; digital multimedia is making progress in its development in the North American market as well and will begin shipping in small quantities in Q2.

In 2022, Alpha Networks will continue to make Wind (4G, 5G, 6G/Low Earth Orbit Satellites), Earth (fiber optics), Fire (edge computing servers) and Water (artificial intelligence) as growth focus in order to satisfy the market demand for high bandwidth, low latency, and wide coverage. In addition to joining the national team on LEO satellites, Alpha Networks is actively investing in network infrastructure developments linked to Wind and Earth. The individual strengths of domestic vendors are leveraged to convert customer specifications into working products as soon as possible for accelerated product R&D. As the first provider of domestically-developed 5G base stations and total solutions in Taiwan and a member of the 5G national team, Alpha Networks can not only provide end-to-end 5G solutions and one-stop shopping of software and hardware. It can supply all the elements required for building a network from the RU, DU, and CU of 5G base stations to the core network. Customization based on client requirements and the intended field is available as well. These have now been deployed in different vertical fields and have found acceptance in the European, American, and Japanese markets.

Alpha Networks is continuing to strengthen its core competitiveness and consolidate its trans-product technologies. It will continue striving to improve corporate sustainability emphasizing environmental protection, social responsibility and governance performance. Compliance with global sustainability reporting standards is maintained in 2021 . Issues of concern to stakeholders were investigated to advance Alpha Networks’ ESG policy, publish quantitative indicators, enhance information transparency, link ESG goals with performance, as well as implement initiatives on environmental protection and friendly workplace.

Looking ahead to 2022, April Huang said that Alpha Networks will continue pursuing a strategy of market consolidation. In addition to optimizing existing businesses and product combinations, and the adding of new products and services to existing channels, Alpha Networks will actively expand into new channels and new fields applications. In Internet-of-Vehicle the focus will be on 4D imaging millimetric radar. Innovative 5G-related products and services will be offered to expand the services provided by the cloud management platform. Further acquisitions will also be made to fill gaps in technologies and channels. These moves are expected to improve company profitability.

《Alpha Networks Inc.》

Alpha Networks Inc. was founded in 2003 and is currently one of the largest professional network equipment manufacturers in Taiwan. With years of experience in product development and design, Alpha Networks has been a major provider of network product design, R&D, and manufacturing for renowned global brand. The Company’s product lines cover Local and Metropolitan Area Networks (LAN/MAN), wireless broadband networks, digital multimedia, and enterprise mobile solutions. The headquarters of Alpha Networks Inc. is located in the Hsinchu Science Park, Taiwan, and the Company owns 3 major R&D centers worldwide, as well as subsidiaries in North America, Japan, and China. For more information on Alpha Networks Inc., please refer to the company's website (www.alphanetworks.com).

《News Contact》

Claire Chen

Tel: +886-3-563-6666 ext. 6562

E-mail: Claire_Chen@alphanetworks.com