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Bien Perez

Coolpad, the third-biggest smartphone supplier on the mainland, plans to ramp up investments in 4G mobile technology to boost global handset sales, after posting steady net profit growth on record revenue last year.
The firm, formerly known as China Wireless Technologies, aims to expand its international sales this year and bolster domestic demand through online retail channels, according to its regulatory filing yesterday.
"The group believes that the 4G smartphone market will bring more opportunities," said Guo Deying, Coolpad's chairman and chief executive.
To stay competitive and introduce smartphones early to market, Guo said the company would allocate "more than half of its research and development resources to 4G products in 2014".
Analysts consider Coolpad the most aggressive among the mainland smartphone makers, with a chance to record even higher revenue this year.
The company plans to ship more than 30 million 4G devices and was the first to announce a 1,000 yuan (HK$1,240) model in January.
Coolpad's net profit rose 7 per cent to HK$348.3 million from HK$324.3 million in 2012, mainly because of the firm's record sales of smartphones.
Revenue increased 36 per cent to HK$19.6 billion from HK$14.4 billion. About 96 per cent of turnover came from HK$18.9 billion in 3G smartphone sales.
Ricky Lai, a research analyst at Guotai Junan International, said Coolpad's performance should improve this year "as it supplies more models for China Mobile's 4G services roll-out nationwide".
Coolpad's strategic co-operation with JD.com the mainland's second-largest e-commerce services provider, was also expected to help it reach more domestic consumers who would make the switch from 2G and 3G plans to high-speed 4G mobile services, Lai said.
JD has already placed a 10 billion yuan purchase order to Coolpad under their multiyear agreement.
In a report, Goldman Sachs analyst Robert Yen estimated Coolpad revenue from online sales this year to reach 12 billion yuan and total revenue to hit HK$36.6 billion.


Coolpad poised for record sales this year on 4G smartphone demand

Coolpad's net profit rose 7 per cent to HK$348.3 million from HK$324.3 million in 2012, mainly because of the firm's record sales of smartphones. Photo: Reuters

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