Information for investors

Information for investors

Business Scope:


ZKP Group Limited is concerned with the manufacture, processing and sales of optical communication products, intelligent electricity and energy-saving equipment; fiber optic network engineering technical services, automation of software systems, research and development of new materials, and the import and export of technology products.

Chinese Fiber Optic Industry Overview

Ceramic ferrules manufactured by ZKP Group Limited are ceramic components made of ZrO2. The components are constructed with maximum precision at a submicron level with an error of just 0.5μm. The physical properties of ceramic ferrules for use in fibre optic communications industry include low friction, corrosion resistance, good compatibility, low loss and low attenuation. As such, ceramic ferrules are the most common precision positioning component in fibre optic communication networks. The main function of ceramic ferrules is to form the physical connection between the fiber optic cable and the ceramic sleeve for connectivity purposes.
Compared with traditional electrical communication, fiber optic communication has many advantages including: increased bandwidth, higher message capacity, lower transmission loss, longer relay distance, thinner wire diameter and lower weight. Using quartz instead of metal, Fibre optic cable has a higher capacity of insulation against anti-electromagnetic interference. It is also characterized by higher corrosion resistance, emissivity resistance, reliability, immunity to power surges, lower leakage and higher confidentiality, making the technology attractive the military.
The range of applications for fiber optic communication technology is constantly expanding due to the development demands of the communications industry. From its original use in local exchange to long distance communication, and now further expanding to serve user access networks, from digital telephone to cable television (CATV), fiber optic technology is versatile and growing in applications. At present, fiber optics have become the major media of broadband information transfer.  Due to the rapid development of internet services and the increasing abundance of audio, video, data and multimedia, there is constant demand for high-capacity (super-speed and ultra-long distance) optical wave transmission systems and networks.
The fiber optic communication industry is the indispensable network basis for the integration of telecommunication, television broadcasting and internet, as well as the major pivot for the future development of the ‘Internet of Things’. With the explosive increase in 4G users, the acceleration of broadband service speed and the integration of the above mentioned networks, the fibre optic communication industry has developed considerably in recent years and has played a significant role in the communications industry.
At present, 90%  of information is transmitted by fibre optics. With the issuing of 4G licenses, China has entered the 4G era. Fibre optic communication and its relevant opto-electronics industry has become the new growth point for the development of the entire information industry.
From a policy perspective, the optical communication industry cannot develop well without the strong support of the government. Globally speaking, the development of the fibre optic communication industry in different countries is closely related to government support. In the 12th Five-Year Plan Summary, China has clearly identified next-generation internet as the strategic industry for priority development. The Plan makes it clear that with the constant growth of digital applications in China, the sales value of the audio-visual industry focused on digital technology will double between 2010 and 2015, to reach a value of RMB 2 trillion. The scale of digital technology shall be the direct engine for motivating the development of fibre optic communication equipment.
In terms of television networks, the State Administration of Radio Film and Television and Technology Bureau have jointly signed the NGB Framework Agreement. The State Administration of Radio Film and Television has invested in the NGB “3T” technology, which will greatly improve the development of interactive TV. It will also encourage the fibre optic communication industry to thrive and enhance the demand for fibre optic systems and devices. Current network arrangements for television broadcasting utilises a fibre optic backbone nationwide, but most of the access network is based on coaxial cable with very limited bandwidth.
As required by Ministry of Information and Technology in 2013, newly-built residential buildings shall be equipped with fibre optic connectivity in conditional villages, towns and rural areas. In addition, the Ministry of Information and Technology also requires that existing residential buildings be refurbished with fibre optic connectivity. Housing and urban construction industries should strengthen the supervision of resource sharing between the existing residential areas, to solve the problem of bringing fibre optic connectivity to households. 
The Strategic Program of Broadband China will further encourage operators to conduct fibre optic reform. It is indicated that by 2015, broadband access in China reached 250 million users. The average access rate in urban families is above 20M while that in rural families is above 4M. The total cost of building a nationwide broadband network for a single operator is RMB 200 billion to 280 billion and the total construction cost for China Telecom, China Mobile and China Unicom is over RMB 600 billion. At present, Chinese broadband uses copper-wire technology represented by ADSL. However, with the increasing service demand and user scale, broadband with copper cable is unable to continuously meet actual network requirements. In order to accelerate broadband development and implement the “strategy of Broadband China”, network transformation must be prioritized to realize the goal of bringing fibre optic connectivity to the home. 
China’s broadband communication network is the largest in the world. As at March 2015, the total length of cable line is about 930,000 kilometres and the number of ports for fibre optic connections to the home/office (FTTH/O) was 186 million. 93.5% of administrative villages nationwide have access to broadband and 3,539,000 mobile communication bases are in operation. The numbers of landline telephone, fixed broadband, mobile phone and internet users are 250 million, 200 million,1290 million and 650 million respectively. On this basis, informatisation of China’s manufacturing industry and other economic fields is inevitable. The applications of information and communication technology are constantly expanding due to industrial research and development. 
Information networks are also the emerging platform for modern culture and digital media. Fast promotion of educational informatisation increasingly helps guide education reform and improves education equality. informatisation in health care, social security, employment, food and drug supervision and other important fields continues to flourish. Smart city construction is constantly promoted and national network safety is continuously improved.
The future requirements of China’s policies involve appropriate planning and construction of a high speed and large capacity fibre optic communication transmission system to improve current transmission and network capacity. Within the overall aim to “speed up and reduce cost”, the existing bandwidth does not meet the necessary requirements. Thus the three operators of China telecom, China Mobile and China Unicom accelerate the development of a 100G network. These trends indicate that the demand a for 100G network have become very pressing. Unquestionably, network demand and business digitalisation are affecting the traditional telecommunications industry in multiple dimensions, pushing operators to keep pace with transformation and innovation.
China Mobile published an integrated distribution case for purchasing broadband access and initiated a CPE centralized purchasing on July 16th, 2015. This means that China Mobile will provide fixed-line internet services to users while broadening the coverage of the existing 4G network. The capital spending budget of China Mobile this year is RMB 199.7 billion, including a target of 920 thousand mobile base stations and upgrading of the current 3G network to 4G. 4G network coverage will also be extended to all urban and rural areas and townships. China Mobile’s 100G network has become the largest plan for deployment in the industry. China Unicom also published a 100G network purchasing plan on June 15th, 2015. According to the tender published by China Unicom, it intends to build a 16x100GWDM transmission system and purchase around 1544x100G board cards. The insiders believe that, as the three operators intensively promotes domestic 100G network construction, the communication equipment industry will see a golden decade of industry flourishing after many years of preparation.
As a matter of fact, user demand is only part of the drive for operators to upgrade the broadband network. Currently, OTT, big data, cloud computing, Internet of things, car networking and mobile broadband are pushing providers to upgrade networks and services to 100G. The rapid popularity of 4G and the emergence of new network architecture, such as the software defined network mean that the current network has been unable to meet new requirements, while flexible and open network evolution has become the key modernizing Chinese networks.
The data of Bell Labs show that global 100G technology application will rapidly develop in the next few years, and by 2016, 100G technology will dominate transmission networks. In next 5-10 years, network flow will peak at 45-125Tbit/s. This shows that development of 100G technology has become essential for operator network upgrading strategies. In the “Internet+” era, user demand has changed under stimulation of 4G. But network upgrading brings new innovation to the industry. The 100G network upgrade will provide the basic condition for flow operation transformation, such as cloud computing, big data development and promotion of SDN fiber optic networks, providing more precise services to Internet+ users and encouraging enterprise informatisation in the progress.
As core components of the fiber optic communications network industry, ceramic ferrules and fiber optic connectors have boosted China’s optical communication industry, which has retained a 30%-40% growth rate in recent years.
ZKP Group Limited products are of the highest quality, with excellent cost-benefit ratios and high engineered content. ZKP Group Limited meets the demands of different operators and corporate clients whilst pursuing rapid innovation. With increasingly enhanced innovation capacity and highly customizable solutions, ZKP products earn the trust and cooperation of customers. 

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