Digital set-top box products have accounted for about 80% of Yinhe Electronics (002519.SZ)'s operating revenue in recent three years.

During the first nine month of 2011, operating revenue of Yinhe Electronics reached RMB 751 million, up 22.9% YoY; while its net income hit RMB62.48 million, up 17.8% YoY. Revenue generated by digital STB products increased by over 25% YoY, with improved market share of over 9% from 7%.

Yinhe Electronics started two capacity expansion projects after it was listed in December 2010. When the projects reach full production, STB capacity will be doubled and reach 5 million sets/year; newly added STB component capacity will be 800,000 sets /year and total 1.75 million sets/year. Currently, the above mentioned two projects are under construction and part of which has started pilot production. 

The State Administration of Radio Film and Television is exploring STB market in rural area. In Sept. 2011, Ningxia was set as the experimental city for rural area direct broadcast satellite service, which would bring development opportunity for STB enterprises such as Yinhe Electronics.