In November, 2007 CHVC announced Signed Agreements with China’s 2nd largest Telecommunications Carrier, China Netcom ((NYSE:CN)) to provide CHVC with preferential rates and cooperation. In addition, China Netcom has chosen Candidsoft’s SKY O/A voice and data solution with an initial budget of $6.5 Million for SKY O/A software licenses through June, 2008. China Netcom is the FIRST major Chinese carrier to strategically align itself with CHINA VOICE. China Netcom is a $20 Billion Valued Chinese Telecommunications giant with over 140,000 employees. The Agreement with ChinaNet provides CHVC with a National Sales Force for its proprietary technology throughout China.
In September, 2007 CHVC received its Second Contract from the Beijing Municipal Water Bureau for Command Center system consulting implementation services. The Contract value was estimated at $400,000.00. The Beijing Municipal Water Bureau manages all local water resources in Beijing City which include surface water, ground water and aerial water. The Contract was awarded upon CHVC’s meritable record of completing work ahead of schedule and achieving positive results.
Awarded last December was a $348,000 contract from the Urumuqi City Police Department for a Criminal Investigation System. Urumuqi City is located at the foot of the snow-capped Tianshan Mountain Range, and is the capital of Xinjiang Uygur Autonomous Region in northwest of China. The largest of China’s provinces, Xinjiang Uighur Autonomous Region is likely the most ethnically diverse. Urumqi is a multi-national city, where 43 ethnic groups reside. It borders eight nations other than China and takes up a full 16% of China’s land mass. CHVC’s CEO, Bill Burbank said, “This is yet another contract that shows the high level of trust that BTSE has earned with law enforcement agencies as well as their ability to work within sensitive and secure environments.” In November CHVC had won a $265,000 Contract from the Beijing City Police Department Video Conferencing and Monitoring System.
Also in December CHVC brought in the large agriculture market of China’s 800 million farmers through a Signed Partnership and Revenue Sharing Agreement with Golden Agriculture Access (AgriAccessCn), China’s Premier Agriculture Network e-Information Provider. The contract is for the supply of CVHC’s SKY O/A™ Enhanced Services Platform and to manage the transition from an informational website like “GOOGLE” to one that creates significant transactional revenue much like “EBAY.” The SKY O/A™ solution includes hosting, managed services, systems hardware and application software to support e-information access and e-commerce services.
Other customer contractual arrangements include those made with the China Foreign Trade Commission, China Telecommunication Administration Bureau, China Tourism Bureau, China Anti-Poverty Office, Beijing Normal University, and Zhong Shan University, as well as a number of privately-owned businesses. Serving the Navigation Affair Administration Bureau of the GuangXi Autonomous Region is one among the several vast projects aligned with the 2008 Olympics.
CHVC anticipates multiple revenue sharing streams from these projects, including VoIP telephone services, unified messaging, video conferencing, wireless broadband and other advanced voice and data services, membership fees, payment gateway, logistics commissions, traditional advertising revenues and transaction-based E-fees.
In January 2008 CHVC announced that its wholly owned U.S. subsidiary, StarCom Alliance, Inc. had signed an Exclusive Supplier Agreement in Excess of $40 Million in Annual Revenue with Power Prepaid Phone Card Distribution (Power Distribution), a distributor of prepaid cellular products, located in Fullerton, California. StarCom Alliance Inc. is a Master Distributor of prepaid and postpaid cellular/wireless products, discount prepaid calling cards and other telephony related products and services that enable users to call anywhere in the world at significant savings.
CHVC expects to solidify acquisition or exclusive supplier relationships with several companies in the U.S. cellular/wireless arena during the first quarter of 2008, to add a minimum of $50 million in annual sales to its U.S. operations.
CHVC’s President and CEO Bill Burbank explained, “Power Distribution is a well known and respected Company focused solely on prepaid cellular products and is currently purchasing in excess of $25 Million of product annually. We anticipate that with our support infrastructure and financial resources, Power Distribution will purchase more than $40 Million of our StarCom Alliance products in the next 12 months.”
Burbank continued, “We are also in the final stages of negotiating Exclusive Supplier Agreements with three additional companies located in California that are focused primarily on the Prepaid Calling Card business and together generate over $35 Million annually in revenue, which if completed would boost our U.S. revenues to over $100 Million. Our goal is to complete these Agreements by the second quarter of this year. Prepaid cellular and prepaid calling card products will represent a significant percentage of our U.S. revenues and when added to the results of our Chinese subsidiaries will produce continued strong growth in 2008.”
Through its U.S. Subsidiaries, CHVC maintains a world-class Fulfillment and Supply Chain environment providing this important function to the Company’s Chinese subsidiaries and Asian partners. This environment also provides centralized, cost-effective and efficient warehousing, shipping, receiving and fulfillment for all U.S. operations.
In December, 2007, CHVC Chairman Hin Hiong Khoo spoke at the China Access 2008 international economic ‘legacy’ program, planning along with major world players for the Beijing 2008 Olympic Games. Attending the following 11th Annual BusinessWeek CEO Forum in Beijing in December, Chairman Khoo pointed out, “American companies that once thought of China as only one of many market opportunities now realize they must operate in China. We recognized that in order to have a high probability of success and to take advantage of the huge Chinese market, we needed to build an infrastructure within China managed by Chinese nationals. Over the last four years, we have built a solid team both in the U.S. and China, patented technology, cemented strong relationships and partnerships in the right places, and obtained sizable contracts with both Government and large corporations.”
In March, 2008 CHVC’s Chief Financial Officer, Ron Allen, announced it has hired Tony Chen as the Company’s Corporate Controller. The bilingual Mr. Chen brings to CHVC a wealth of accounting and financial experience having held senior accounting and financial management positions in private and public companies both in China and the United States. He will coordinated the completion of CHVC’s financial audits and help guide the Company to become a Full Reporting Company preliminary to a listing on NASDAQ or the AMEX.
