About DIRECTEL Company

The Group is a mobile virtual network operator with MVNO and ETS licenses in Hong Kong, China. The Group has been mainly engaged in providing outstanding “One Card Multiple” services in Hong Kong, China under the “China-HK Telecom/China-Hong Kong Connect” and “Directel/Direct Connect” brands. The service allows its users to simultaneously have mobile phone numbers from different designated regions (especially mainland China and Hong Kong) with a single SIM card, making it easy to make and receive long-distance calls from Hong Kong, China and other designated regions at a lower cost than roaming services. The Group also provides users with international long-distance telephone services from Hong Kong, China to all parts of the world and local mobile services in Hong Kong, China. The Group's mobile phone service has prepayment and postpayment plans. In addition, the Group provides telemarketing agency services to a number of major mobile network operators in Hong Kong, China, to maintain the Group's strategic relationships with its main customers (one of whom is the Group's call time service provider). The Group has adopted a low cost strategy for its business and operations. One characteristic of the Group's low-cost business model is that, with the exception of a relatively small amount of core equipment associated with 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 airtime from major mobile network operators in Hong Kong, China at the agreed rate, and purchased mainland China airtime from major mobile network operators in mainland China, and then resold the purchased airtime to its users or dealers under its own brand name or to its corporate customers under its own brand name. This model saved the time and huge sums of money required for the Group to invest in building a complete mobile communications network infrastructure on its own. Furthermore, the Group is not required to maintain a team composed entirely of technical staff to continuously repair and maintain such network infrastructure. In addition, the Group also minimizes the size of its company and reduces general expenses by outsourcing many non-core business operations or administrative functions such as data processing and bill management services and call center services to third parties. Through these initiatives, the Group has been able to concentrate on investing in its “One Card Multiple” service and developing and maintaining its business relationships with mobile network operators in different regions such as mainland China, Hong Kong, and Taiwan, and developing new products or services for its customers. Despite fierce competition in the mobile communications market and the global financial crisis, the Group's low-cost strategy helped it remain profitable during its track record. The Group's sales and distribution channels for mobile communication services are mainly wholesale to dealers and mobile network operators and retail to end users. The majority of the call time of the Group's mobile communication services is distributed to dealers in the form of pre-paid SIM cards and recharge vouchers. The sales network of these dealers covers a wide range of stores and stores in Hong Kong, China, including convenience store chains and mobile phone stores where it is convenient for users to buy. In addition to purchasing Hong Kong airtime from major mobile network operators in Hong Kong, China, the Group has also been selling mainland China calling time originating from a mobile network operator in mainland China. Similarly, in addition to purchasing mainland China calling time from mainland Chinese mobile network operators, the Group has also been selling Hong Kong calling time originating from a major mobile network operator in Hong Kong, China. Since the Group has its own system infrastructure to support the “One Card Multiple Number” service, the Group has successfully distributed large amounts of mainland China calling time and Hong Kong calling time to major mobile network operators in Hong Kong, China and a mobile network operator in mainland China, respectively. Furthermore, a portion of the Group's airtime is sold directly to its end users through its service plans. In order to further expand its market share and enhance profitability, the Group will cover its “One Card Multiple” service to Taiwan, China, and plans to expand this service to other regions in the Asia-Pacific region after Taiwan's business matures. The Group also plans to develop 3G mobile data services by upgrading its existing system infrastructure to increase the variety of services provided to its users. Furthermore, the Group plans to introduce RF-SIM (mobile phone SIM card and contactless smart card in one) to provide its users with more value-added services, such as access control systems for entering and leaving parking lots and housing estates, and receiving promotional materials or promotional coupons through mobile phones. Continuing the past and creating further brilliance, the Group continues to improve customer service standards and stabilize market profits in the traditional communication field. Looking ahead, the Group will enter the mobile Internet market through various apps such as new roaming, softphones, and encrypted address books. By developing integrated communication, we will continue to forge ahead courageously towards the goal of developing a new type of mobile internet.