PRD transformation and upgrade (5): Fibre optic firm banks on urbanisation

Rapid urbanisation, coupled with increasing infrastructure construction, has stimulated growing demand for related facilities such as power and communication networks in the Chinese mainland. In view of this, Shenzhen Skyee Optical Fiber Communication Technology Ltd is stepping up its R&D activities and expanding its production capacity in a bid to increase its share in China’s optical fibre communication products market.

When it was first established in 2001, Skyee already focused at opportunities arising from three-network convergence, namely, the integration of telecommunications, broadcasting and Internet networks, as a result of urbanisation in China. Staying away from the highly competitive market of consumer products, the company focuses on the development of communication devices for smart power grids. At present, Skyee is engaged in a full range of operations involving optical fibre communication equipment, covering R&D, production, marketing and servicing. Its products include the software and hardware for EPON (ethernet passive optical network) devices used for automatic information collection for power distribution, the transmission lines for the ultra / super high voltage power lines of power grid interconnection systems, as well as the pre-twisted products for the special optical cable of urban distribution networks. Interconnected indoor access solutions are also provided for FTTH (fibre to the home) services under three-network convergence.

Utilising local R&D resources

“The company pays particular attention to R&D activities. It designs and constantly reinvents products and solutions for power grid application so as to meet the changing and stringent requirements of customers in terms of technology and specification. Ongoing technology upgrade is indeed the key to the company’s survival and success,” Skyee told the HKTDC economist. Today, Skyee is recognised as a High and New Technology Enterprise in China.

China has a keen demand for technical staffing support. Despite the rise in labour and operating costs in the coastal areas, Skyee maintains its management, marketing and R&D bases in Shenzhen for its higher concentration of technical expertise and related supporting services. This operation model facilitates easy access to external technical services and support on a need basis, as well as customer liaison. While purchasing, logistics and technical support is provided by the Shenzhen headquarters, its production base has moved to Ji’an, Jiangxi province where the operating cost is lower.

Diversifying into overseas markets

At present, many of Skyee’s products are supplied to the state power grid, southern power grid, and most provincial power grids. Apart from the domestic market, Skyee also pays attention to the overseas market. In particular, the steady rise in infrastructure activities in emerging markets has generated a growing demand for the company’s products. Skyee has therefore started to explore the export opportunities to Southeast Asia, Africa, South America and Europe in recent years, in the hope of increasing its sales while diversifying market risk.