StockTalkJournal: Who is China Voice?
China Voice Holding Corp. (OTC: CHVC) delivers a portfolio of next-generation communications products and services doing business in the People’s Republic of China and the United States. CHVC has obtained full legal status as a licensed telecommunications company with the ability to offer products throughout China. The Company offers voice over Internet protocol (VoIP) and other telecommunication services, office automation, wireless broadband, unified messaging, hosted groupware, mobile and other advanced voice and data services. Through several subsidiaries, CHVC provides these next generation communication services in profitable niche markets in China and worldwide. The company’s services are designed to produce recurring revenues from activation, monthly subscription and utilization fees. CHVC operates through its five United States and three Chinese subsidiary companies. [Headquartered in South Florida, CHVC operates through several subsidiary companies located in the United and China] The Company’s United States operations provide the infrastructure to support the marketing, sale and fulfillment of Asian communication products and services in the United States. In turn, its Chinese subsidiaries provide a vehicle to distribute and deploy United States telecommunication, wireless and next generation technology products within Asia.
The Chinese telecommunications market is the largest and fastest growing in the world, with 812 million fixed land line and mobile phone subscribers as of September, 2006. As of December 2006, China had 137 million Internet users, an increase of 23% over 2005. China services the world’s largest SMS “Text Messaging” and Cable TV markets and is expected to overtake the United States as the country with the largest number of Internet users in approximately two years. CVHC leverages solid collaborations and strong relationships with state-owned Telco’s. The company’s focus is on providing innovative Next Generation telecommunication applications and solutions to all its customers by growing its customer base in China and other parts of the world through aggressive marketing and sales efforts as well as acquiring and merging with synergistic companies.
Proprietary Sofware Platform
CVHC obtained unique market presence with the development of “SKY O/A™” as China’s first patented proprietary groupware application platform. SKY O/A™ is organized into three operative modules: O/A Cooperative Office Solutions, O/A Integrated Office Solutions, and O/A Unified Processing Solutions. SKY O/A™ has no competition in China and currently supports over one million users. The scalable platform uses a web-based technology and was designed for realtime flexibility. It may be easily modified or extended to meet the specific needs of each Chinese Government Agency or Large Enterprise Company. Allowing multiple workers to collaborate on single or group projects, SKY O/A™ can be opened to many other platforms and programming interfaces for secondary development. The patented SKY O/A™ groupware platform maintains facile database performance, supports browser, client programming, mobile short messaging, and PDA etc. “SKY/OA” features a strong authority management system with automatic backup and storage management frameworks to protect clients’ data and network. The proprietary SKY O/A™ platform is installed on Dell servers and accessed by paid licenses through Next Generation VoIP and telecommunication equipment. Most important is that SKY O/A™ was uniquely designed to serve, fit, and customize the large expanding Chinese voice and data applications and digital telcom base, catapulting the Chinese business market into the future.
Multiple Contracts
Along with its proprietary SKY O/A™ product base, CHVC is also a high level authorized dealer for Cisco Systems, HuiWei, 3Com, Polycom Video products, NEC Monitors and many other IT products. The Company has built a diligent, experienced and well trained team-many of which are Cisco certified CCNP and CCIE engineers. Long-term relationships CHVC has established with numerous government and academic customers include Ning Xia Population Control Bureau, Chong Wen Education Administration, Xing Jiang Military Division, He Bei Province Economic Development Bureau, Qin Zhong Merchant Bank, Chang Sha Navigation Affair Administration Bureau, Jiang Xi Province Education Administration, Qing Dao Hospital, Qing Dao City Navigation Affair Administration Bureau, China Cotton Network, Beijing Engine Manufacturer, Beijing Language School, and the Shang Xi Province School of Chemical Engineering.
[Police and Water]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.
Contract with China’s Second Largest TELECOM
China Netcom is the first major Chinese carrier to strategically align itself with CHVC. Last year’s Signed Agreements between CHVC and China Netcom (NY: CNC), China’s 2nd largest Telecommunications Carrier, provide China Netcom with CHVC preferential rates and cooperation, giving CHVC unique and solid presence in China’s broad economic picture. Under the Agreement China Netcom allows an initial $6.5 Million budget for Software Licenses of the CVHC “SKY O/A™ voice” and data solution proprietary package. Servicing every Province in China, China Netcom is China’s number two broadband communications and fixed-line telecommunications operator. CNC employs over 140,000 people, trades on the New York and Hong Kong Stock Exchanges and has annual revenues approaching $11.5 billion.
800 Million Farmer Agriculture Access
CVHC has recently 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.” Candidsoft’s SKY O/A™ solution includes hosting, managed services, systems hardware and application software to support e-information access and e-commerce services.
CHVC Signs Contract Valued in Excess of $40 Million in Annual Revenue
Buttressing its China revenue stream are the recently acquired contracts by CHVC’s U.S. network of subsidiaries. In January CHVC’s wholly owned U.S. subsidiary, StarCom Alliance, Inc. signed an Exclusive Supplier Agreement 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’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.
CHVC participated with major world players in the China Access 2008 international economic ‘legacy’ program for the Beijing 2008 Olympic Games. Attending the following 11th Annual BusinessWeek CEO Forum in Beijing in December, 2007, Hin Hiong Khoo, CHVC Chairman and Director of China Access pointed out that the forum exposed CHVC to “many new and promising opportunities.” He said, “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.”
CHVC’s Chief Financial Officer, Ron Allen, has recently announced it has hired Tony Chen as the Company’s Corporate Controller. 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.
The ‘Rise of China’ – which since 2001 accounts for fully one-third of the world’s economic growth – is one of the most important economic trends of our time. Making successful international investments is not just a matter of identifying business opportunities. CHVC pursues its China investments within true peer-to-peer corporate environments and industry networks that are based on reciprocity, evolving trust and partnerships. CHVC’s U.S. based public company provides a vehicle for Chinese businesses to become participants in America’s economy and free enterprise system.
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