Company Overview
Mission & Strategies

  1. Mission
  2. Our company is devoted to the development and implementation of next-generation wireless enterprise solutions to allow our customers to communicate, operate, and conduct transactions more efficiently and effectively than ever before.

  1. Market Opportunities
  2. 3G Rollout in China
  3. On December 31, 2008, the State Council of the PRC announced the approval of 3G license issuances to three telecom operators, namely China Telecom, China Mobile and China Unicom, and the Ministry of Industry and Information Technology (MIIT) officially issued 3G licenses to those entities on January 7, 2009. Third generation wireless standard, or 3G, is a family of standards for mobile telecommunication. 3G communications allow simultaneous use of speech and data services at higher data rates than services developed under prior generation standards.

    According to a January 2009 report by CITIC Jiantou Securities, it is estimated that investment in 3G between 2009 and 2011 by the three Chinese telecom carriers will total $44.0 billion. According to the MIIT, the 3G industry is expected to generate RMB 1 trillion, or $146.5 billion, in demand in the next three years. As mobile carriers further invest in applications and content, we believe the demand for enterprise mobile software/ middleware will experience significant growth.

    We believe the issuance of 3G licenses is expected to drive the growth of an enterprise wireless chain comprised of telecommunications service providers/carriers, converged mobile device providers, IT vendors, and software/middleware providers. Mobile software/middleware provides key platforms across which managed enterprise mobility services are deployed. We believe the 3G rollout and the upcoming commercial deployment will both inspire and facilitate new and diversified customer applications for mobile enterprise software.

  1. Mobile Enterprise Solutions in China
  2. We believe that China's enterprise mobility market is experiencing rapid development, driven primarily by the development of the mobile industry. In its January 2008 report, IDC forecasted the enterprise mobility market in China to reach $15.56 billion in 2011 with a forecasted compound annual growth rate of 6.0% from 2007 to 2011.

  1. Strategies
  2. Recruit, train and retain engineering professionals
  3. To sustain our high rate of growth, we must continue to add to our technical and business development teams through selective recruiting of university graduates and qualified lateral hires. Once employed, we provide our technical employees with a comprehensive training program to understand our technologies, market and product offerings.

  1. Expand operations
  2. We recently obtained the building ownership certificates for the "Kingtone Center", a six-story, approximately 20,000 square-meter warehouse and industrial facility in Xi'an, Shaanxi Province. The building will house over 500 employees in three years as business expands with an upgraded Research & Development center and a customer support center. It will also assist sales and marketing with a showroom for demo customer applications. We believe Chinese customers have more confidence in the financial strength of businesses that have their own building. We expect Kingtone Center to have a positive effect on our marketing activities and business expansion.

  1. Invest more in research and development to create more successful software products
  2. To keep our competitive edge, we are launching a new research and development program to keep abreast of the latest developments in wireless standards and information management technologies and to anticipate future customer needs. We also plan to invest in developing new applications for anticipated high-growth, vertical industry markets. Spending will be focused on testing equipment, including laboratories and 3G simulation systems, as well as expendable materials used during experiments. We plan to allocate a large portion of space in our new Kingtone Center facility to house our enlarged development team and increased research and development activities.

  1. Pursue strategic acquisition opportunities
  2. We will from time to time consider acquisitions or alliances that enable us to acquire talented and experienced software development personnel, enhance our technological capabilities and competitive advantages or provide licensing or recurring revenue opportunities, and propel our expansion.

  1. Capitalize on 3G adoption in China
  2. Since the issuance of 3G licenses in January 2009, we have been working with wireless telecom carriers on joint marketing initiatives aimed at increasing the utilization of 3G by enterprises. Our telecom partners are seeking new revenue streams to offset diminishing revenues from voice services, and we are offering solutions to enable wider forms of mobile computing that take advantage of the 3G bandwidth.