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China Daily Report about RADIOLINK

Radiolink has eyes on sky-high markets!        


____Reported by CHINA DAILY

_____Updated:2015-07-03 BY QIU QUANLIN (CHINA DAILY)


Xie Bo, founder and general manager of Radiolink Electronic Ltd, has a lofty goal-to see his company's electronic remote controllers used in major global model airplane competitions in the next few years.

The company, which was founded in 2003, would seek an initial public offering to finance its expansion amid increased domestic and export demand, he said.

"We make advanced electronic remote controllers, which are widely used as the popularity of unmanned aerial vehicles grows," said Xie.

Radiolink, based in Shenzhen of Guangdong province, achieved sales of about 1.8 million yuan ($290,000) in April alone, according to Xie. Total sales in 2014 were about 4 million yuan, he said.

Surging use of unmanned aerial vehicles, or drones, has been driving sales, he said.

"As the drone industry has developed rapidly, a growing number of domestic and foreign drone producers have contacted us about potential business cooperation," Xie said. The company had so many orders in April that it could not satisfy them all.

"Our shortage of capacity is due to dramatically increased demand, especially from abroad," Xie said.

Before 2012, when Radiolink embarked on its transformation, the company was a chip supplier for toy producers based in Shantou, one of the key toy centers in eastern Guangdong. Radiolink also developed and sold information technology products, according to Xie.

Hu Lantian, vice-director of the Shenzhen Toys Industrial Association, attributed Radiolink's success to a decision to shift away from supplying chips for toys to making its own innovative electronic products.

"It is not easy for a traditional chip supplier (to decide to) transform its business, given that Radiolink already had a large market share in the toy chip industry," Hu said. Investment in innovation and technology was a major factor behind the company's success, according to Hu.

"There are a growing number of small and medium-sized electronics companies in Shenzhen that pro-actively upgraded their business in line with changing markets," Hu said.

Upgrading has helped expand the industry, with the output of the electronic information sector in Shenzhen, a testing ground for China's reform and opening-up, increasing 9.1 percent year-on-year to 1.2 trillion yuan in 2014, according to the Shenzhen Electronic Chamber of Commerce.

After Radiolink began its transformation, it took almost two years to begin the complete production of electronic remote controllers.

"We started making profits only at the end of last year. Before that, we had to invest heavily in technology research and development for the electronic remote controllers, which was a brand new business for us," said Xie.

Citing the success of DJI Technology Co, a major domestic drone maker, Xie said startups in Shenzhen usually go through problems before they turn a profit.

"We realized there would be difficulties, even as we began to transform our business. We did not want to simply be a supplier for toy producers. We wanted to develop our own brand," said Xie.

DJI Technology became a household name in the drone industry over the past two years, after its expansion in the international market.

According to Xie, his company has a long-term strategy to enter the global market by introducing more advanced facilities and equipment in the model airplane electronics industry. For example, the company is developing chargers for radio-controlled vehicles and remote controllers.

"Our ultimate goal is to catch up with foreign players in the industry," Xie said.

According to Xie, fewer than five similar domestic companies make electronic remote controllers. Internationally, the market is dominated by leading brands such as Japan's Futaba Corp.

"We will look for investment (overseas) to expand our international presence," Xie said.


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