KPMG accounting firm
Windward 3, Regatta Office Park PO Box 1350 Grand Cayman KY1-1108 Cayman Islands
Head Office and Principal Place of Business
Rooms 1, 2, 14 and 15, 37 / F, Hong Kong Commercial Centre, 188 Connaught Road West, Hong Kong
The company and its subsidiaries (the "Group") are a mobile virtual network operator ("MVNO") mainly engaged in the provision of mobile telecommunications services, telecommunications value-added services and distribution of mobile phones, electronic products and mobile recharge and data electronic recharge coupons. The Group does not have its own telecommunications network infrastructure and its business mainly involves the purchase of talk time and mobile data from several mobile network operators within and outside Hong Kong, China. Then resell the call time and mobile data to users and dealers through different channels and in different forms. The Group also provides services including resale of talk time and mobile data, telemarketing agency services and other services.
The Group is a mobile virtual network operator holding MVNO and ETS licenses in Hong Kong. The Group has been mainly engaged in providing outstanding "one-card multi-number" services in Hong Kong under the brands of "China-HK Telecom/ China-Hong Kong Link" and "Directel/ Direct Link". The service allows its users to have mobile phone numbers in different designated regions (especially in China and Hong Kong) with a single SIM card, enabling them to easily make and receive long-distance calls from Hong Kong and other designated regions at a lower cost than roaming services. The Group also provides customers with international long-distance telephone services from Hong Kong to other parts of the world and local mobile services in Hong Kong. The Group's mobile phone services have pre-payment and post-payment schemes. In addition, the Group provides telemarketing agency services to a number of major mobile network operators in Hong Kong to maintain the strategic relationship between the Group and its key customers, one of which is the service provider of the Group's talk time.
The Group adopts a low-cost strategy for its business and operations. One of the features of the Group's low-cost business model is that, in addition to a relatively small number of core equipment related to the provision of "one-card multi-number" services, the Group provides mobile communication services through other third-party mobile networks that it does not own or operate. Instead, the Group purchases Hong Kong talk time from the major mobile network operators in Hong Kong at the agreed rate and China talk time from the major mobile network operators in China, then resell the purchased talk time to its users or distributors under its own brand name or to its corporate customers under the brand name of its corporate customers. This model saves the time and huge amount of money required for the Group's own investment in the construction of a complete set of mobile network infrastructure. In addition, it is not necessary for the Group to maintain a team composed entirely of technical staff to carry out continuous maintenance and maintenance of such network infrastructure. In addition, the Group also minimizes its company size and reduces general expenses by outsourcing many of its non-core business operational or administrative functions, such as data processing and billing management services and call centre services, to third parties. Through these initiatives, the Group has been able to focus on its "multi-card" services and the development and maintenance of its business relationships with mobile network operators in different regions such as China, Hong Kong and Taiwan, and to develop new products or services for its customers. Despite the fierce competition in the mobile communications market and the global financial crisis, the Group's low-cost strategy helped it remain profitable during the track record period.
The sales and distribution channels of the Group's mobile communication services are mainly wholesale to distributors and mobile network operators and retail to end users. Most of the talk time of the Group's mobile communication services is wholesale to dealers in the form of prepaid SIM cards and recharge coupons. The sales network of these dealers covers a wide range of shops and shops in Hong Kong, including convenience stores and mobile phone stores. In addition to purchasing Hong Kong call time from major mobile network operators in Hong Kong, the Group has been selling PRC call time derived from a mobile network operator in the PRC. Similarly, in addition to purchasing call time in China from PRC mobile network operators, the Group has been selling Hong Kong call time derived from a major mobile network operator in Hong Kong. As the Group has its own system infrastructure to support the "one-card multi-number" service, the Group has successfully wholesale a large number of PRC talk time and Hong Kong call time to major mobile network operators in Hong Kong and a mobile network operator in China. In addition, part of the Group's talk time is retailed directly to its end users through its service plan.
In order to further expand its market share and enhance its profitability, the Group has extended its "multi-card" service to Taiwan and plans to expand the service to other regions in the Asia-Pacific region when its business in Taiwan matures. The Group also intends to develop 3G mobile data services by upgrading its existing system infrastructure to increase the range of services provided to its users. In addition, the Group intends to introduce RF-SIM (a combination of mobile phone SIM cards and contactless smart cards) to provide more value-added services to its users, such as access to car parks and housing estate access systems and collection of promotional materials or promotional coupons through mobile phones.
To carry on the past and forge ahead into the future, to create resplendence, the Group continues to improve the level of customer service and stabilize market profits in the field of traditional communications. Looking to the future, the Group will enter the mobile Internet market through a variety of APP, such as new roaming, softphone, encrypted address book and so on. To carry out converged communications, we will continue to forge ahead towards the goal of developing a new type of mobile Internet.