News and Research on Ninetowns Internet Technology Group Company Limited (NINE)
Business Description
Ninetowns Internet Technology Group Company Limited engages in the sale of enterprise software, the provision of the related after-sales services, and software development services in the Peoples Republic of China.
Products and services
The products and services the company offered in 2006 included the following:
Enterprise software
The company has five enterprise software products available commercially or in trial version: iDeclare.CIQ, iProcess.CIQ, User Message Agent, or UMA, iMonitor.CGA, and iValue.
iDeclare.CIQ series: iDeclare.CIQ series, commercially introduced in August 2000, of products enables international trade enterprises to complete the declaration process electronically over the Internet. The company initially offered the iDeclare.CIQ basic package, which included two separate software functions, including one year of customer maintenance services. In September 2001, the company started to offer the iDeclare.CIQ basic package, which includes six separate software functions, including one year of basic customer maintenance services. In September 2006, the company also developed Ninetowns Network Quality Supervision Software v1.0, the newest version of software in the iDeclare.CIQ series.
The company’s iDeclare.CIQ product series users include various international trade enterprises operating in a range of businesses. They include the PRC branch offices of multinational trading companies that might purchase multiple copies of iDeclare.CIQ, as well as smaller PRC companies focused on businesses that might buy only one copy of iDeclare.CIQ.
The company’s iDeclare.CIQ product series allows users to submit encrypted applications to the PRC Inspections Administration for examination, comment and approval over the Internet. In addition, iDeclare.CIQ is capable of generating electronic documents with information inter-linking ability to replicate documents required for international trade transactions. Such documents include invoices for export, packaging forms, bills, customs clearing forms and approval forms for special goods. Additional software functions are designed for installation and incorporation into the iDeclare.CIQ product series.
The iDeclare.CIQ product series has three main applications: Origin Certificate processing, declaration processing, and registration and permit processing.
The Origin Certificate processing application allows users to apply for and obtain over the Internet an Origin Certificate, which is a required document showing the place of origin of goods imported or exported. iDeclare.CIQ’s Origin Certificate processing application has five software functions that allow an international trade enterprise to obtain Origin Certificates. The different software functions relate to the import/export regulations of different countries and can help an enterprise determine if it qualifies for favorable tariffs between China and a second country. All five software functions have been included in the iDeclare.CIQ product series.
The declaration processing application allows users to declare their imported or exported goods for inspection by the PRC Inspections Administration, which involves a general inspection of the goods, the packaging material and the shipping container. The declaration for inspection of goods has been included in the iDeclare.CIQ product series.
The registration and permit processing application allows users to register goods to be imported or exported and to apply for a permit for such import/export transaction. This application is used when animals, plants or related products are imported or exported. The registration and permit processing application is a new function and is only available in a trial version.
The company’s iDeclare.CIQ product series transmits all user submissions to the PRC Inspections Administration electronically in an encrypted format over the data exchange platforms operated by iTowNet.
iProcess.CIQ series
The company, in June 2005, launched iQS, one component of a new product series called iProcess.CIQ, in certain major cities of the PRC including Ningbo, Qingdao, Dalian, Hangzhou, Jinan, Tianjin and Shanghai. The company’s iProcess.CIQ product series enables international trade enterprises and their suppliers to submit product quality-related data to the PRC Inspections Administration throughout the production process. In addition, the company’s iProcess.CIQ product series enables manufacturers to submit production-related data over the Internet to the PRC Inspections Administration regarding the nature and quality of the components and materials being used by the manufacturers in creating their products.
UMA series: Commercially launched in October 2003, the UMA series of enterprise software facilitates data transfers: with in iTowNet’s data exchange platforms; among PRC Inspections Administration’s internal processing systems; and between PRC government agencies.
iMonitor.CGA series: The iMonitor.CGA series of software and hardware products was commercially introduced in June 2004 and was designed to be installed at the customs clearing gates of PRC Customs branch offices to allow inspection of goods-in-bond. The purpose of an inspection of goods-in-bond is, among other things, to monitor and inspect shipping containers to prevent such shipping containers from passing PRC Customs without paying the required tariffs. The company’s iMonitor.CGA product series has two main applications: data collection through container number recognition, and gate inspection.
The container number recognition application allows PRC Customs to manage the several shipping containers that pass through China’s import/export ports daily by using cameras to observe, identify and process identification numbers painted on the exterior of shipping containers.
The gate inspection application provides PRC Customs an entire suite of applications, ranging from the container number recognition application to the tracking of vehicles and containers. The gate inspection application uses automatic sensors to electronically observe, transmit, process and manage data such as vehicle driver identification, vehicle license plate numbers, shipping container identification codes and shipping container size and weight, as well as the movement of vehicles and containers in the PRC Customs ports. The gate inspection application also verifies the collected information against the information stated in the relevant declaration documents.
The company’s iMonitor.CGA series of products interfaces with PRC Customs’ multiple cameras and sensors installed at import/export clearing gates to process the captured images and output the results in an organized and easy-to-manage manner.
iValue series
A trial version of iValue product was introduced in March 2004. The purpose of the iValue product series is to provide services that are complementary to a user’s interaction with the PRC Inspections Administration and PRC Customs. iValue product series has only one principal application: electronic bill payment. This application allows users to electronically pay PRC Inspections Administration- or PRC Customs-related fees over the Internet through a platform that the company operates. Electronic payments are made as wire transfers directly from a payor’s bank account at a participating bank. Funds are released upon receipt of wire instructions by the participating bank through its iValue platform. As a result, the company is not exposed to the credit risk of the payor. The iValue product series also allows integration of payment records into other software and databases.
Software development services
The company provides software development services to PRC government agencies, their related entities and their third party service providers in order to enhance electronic data exchange, processing and monitoring capabilities. Its software development services consist of the design, development and maintenance of, and upgrades to: the internal software systems used by PRC government agencies and their related entities to process electronic filings made with its enterprise software; and the data exchange platforms which serve as the interface between such systems and users of its enterprise software.
Customers
The company’s customers for software development services include the PRC Inspections Administration, iTowNet, eGrid and other third party customers.
Significant Events
Acquisitions: The company’s indirect wholly-owned subsidiary, in October 2006, Beprecise, acquired a 16.25% interest in Global Market, a Chinese B2B trade facilitator headquartered in Guangzhou. As of April 27, 2007, Ixworth, its wholly-owned subsidiary, acquired a 70% interest in Ample Spring, a related party of Baichuan, a Chinese B2B vertical search engine operator.
The company, in May 2007, launched tootoo.com, its new B2B vertical search platform.
Competition
The company’s major competitor includes Fujian Ronji Software Development Co., Ltd.
History
Ninetowns Internet Technology Group Company Limited was founded in 1995.
