$39.10
Zyxel Group Corporation (hereinafter referred to as “Zyxel Group”) was established through a share swap with Zyxel Communications Corporation (hereinafter referred to as “Zyxel”) on August 16, 2010. Since then, the Group has carried out the reorganization subject to the Group Member’ industrial characteristics in order to upgrade the performance and competitiveness in the industry, as well as its industrial focus and profitability.
1. Business results in 2022：
The operating revenue in Zyxel Group’s 2022 consolidated statement of comprehensive income is NTD30.52 billion, the gross profit NTD6.99 billion, the gross margin 22.90%, operating expenses are NTD5.14 billion, net income is NTD1.63 billion, and EPS NTD3.87.
(1) Outcome of performance：
Unit: NT$ thousand
| 2022 | 2021 | |
| Operating revenue | 30,515,803 | 25,681,970 |
| Gross profit | 6,987,954 | 6,060,518 |
| Operating income | 1,847,262 | 1,425,434 |
| Income (loss) before income taxes | 1,992,303 | 1,438,064 |
| Net income | 1,626,931 | 1,095,459 |
(2) Analysis on profitability：
| 2022 | 2021 | ||
| Return on total assets % | 6.95 | 5.46 | |
| Return on attributable to shareholders of the parent % | 16.92 | 12.50 | |
| As a percentage of paid-in capital % | Operating Income | 46.16 | 31.42 |
| Income (Loss) before income taxes | 49.79 | 31.70 | |
| Net income % | 5.33 | 4.27 | |
| Basic earnings per share/NTD | 3.87 | 2.49 | |
2. Business Outlook：
Zyxel Group is dedicated to the networking industry to have deeply set its roots in various areas about the network technology and market. Zyxel Group plans the Group’s business strategies and goals, uses the best effort to plan and utilize its resources effectively and provides the affiliated companies with a better development platform to upgrade its competitiveness and shareholders’ equity. The three subsidiaries, namely Zyxel Communications Corporation (hereinafter referred to as “Zyxel”), MitraStar Technology Corporation (hereinafter referred to as “MitraStar”), and Zyxel Networks Corporation (hereinafter referred to as “ZNet”), are in charge of telecommunication, OEM, and channel business, respectively, and strive in the technologies and markets in the network industry.
Zyxel’s brand promise is “Keeping service providers ahead of the competition” It dedicates to developing comprehensive, reliable solutions that accelerate and satisfy the advent of next-generation fixed and mobile broadband technology. Zyxel aims to help operators in 150 markets around the world to open up more opportunities with truly converged services. MitraStar specializes in R&D and OEM of network communication technologies and products; by working with the brand clients around the world, it provides value from the customers’ point of view and improves the performance of mass production by virtue of innovative design and control over costs, and satisfy customers’ needs with excellent production management, logistic management, technical support and customer services. Looking to 2023, the supply chain problems affected by the pandemic will be normalized again. MitraStar will continue to optimize the deployment of capacities and maintain the partnerships with customers and the supply chain. ZNet is committed to the channel business management, providing customers with localized sales and services, while actively expanding the extent of brand services, and planning products and solutions satisfying customers’ needs.
Zyxel provides solutions, rather than products, to meet the needs of service providers, while MitraStar seeks more clients for one technology to expand quantity and scale. Zyxel and MitraStar work together to expand their business and support each other. They jointly contribute to the R&D of broadband access equipment, pursue operational optimization and technological interoperability, increase the return on investment of technologies, and enhance operating efficiency. Zyxel focus on product R&D, positioning itself in the areas of new generation high-performance fixed and mobile broadband technology and digital home multimedia, and provide faster service and better preforming products to telecom service providers. ZNet actively positions the cloud networking management, 5G, network security, and smart home living field, providing complete commercial and home solutions; in terms of the operating strategies, it also focuses on the management of Managed Service Providers (MSP) and Value-added Resellers, and continuously launches software subscription licensing services to increase user loyalty.
Zyxel is actively developing 10G active and passive fiber (PON) broadband access network solutions to help telecom service providers meet the challenges of serving high demand for bandwidth and provide users with real Multi-gig services. Except for the active investments in the 10G optical fiber user equipment market, the focus will be on the promotion and sales of All-In-One Whitebox OLT central office terminal equipment in the future. As 5G is formally operated commercially, Zyxel has launched the complete 5G NR Fixed Wireless Access (FWA) product portfolio, including outdoor, indoor, and portable products, which has been chosen by many European leading mobile telecom service providers. Meanwhile, excellent software research and development capabilities are adopted to launch the MPro Mesh® solution.
To respond to climate change issues, Zyxel has made it a core target to launch low-carbon green products aligning with the environmental protection trends in recent years. Zyxel plans to launch the WiFi 7 MPro Mesh® solution in 2023, implementing the concept of green products from the shell material, mechanism design, software functions to packaging materials. Through the specific implementation of ESG and the innovation of green products, the Company further grasps the world trends and advantages.
Furthermore, in terms of development of the networking solutions for business application, ZNet combines the popularity of cloud services to provide products and services that can meet the networking needs of businesses and home users. By successfully launching the Nebula smart cloud networking management solution in Taiwan, ZNet has not only made the Nebula cloud management platform support its popular ATP firewalls and USG FLEX firewalls, but also provided SMEs and MSPs with more comprehensive information security protection. Additionally, ZNet continues to release various WiFi 6/6E commercial wireless access points, switches and 5G/LTE mobile routers to meet the deployment needs of SMEs or SOHO users in any environment.
As a networking company, Zyxel Group’s expertise in networking technologies is also applied to the areas of national defense communications and information security. Zyxel Group is one of the few Taiwan-based suppliers capable of researching and developing the information security hardware products, such as radar, military wireless communications and firewalls.
By virtue of professional management and market deployment, Zyxel Group will increase rewards to employees to encourage employees and increase the incentives to solicit talents. Externally, it will improve profitability and long-term competitiveness. The entire management team will use its best effort to combine the sound technical energy, create more infinite possibilities for network communications, and upgrade the shareholders’ equity and create a win-win-win situation for Zyxel Group Corporation and its employees and shareholders.
At last, we wish all of you good health and everything goes well!