News and Research on Qiao Xing Universal Telephone, Inc. (XING)
Business Description
Qiao Xing Universal Telephone, Inc. engages in the design, manufacture, and sale of telecommunication terminals and equipment, including corded and cordless telephone sets in Mainland China. It also engages in the production and sale of mobile phones and accessories in Mainland China.
As of July 16, 2007, the company owned 61.3% of Qiao Xing Mobile Communication Co., Ltd. (QX Mobile), an international business company. QX Mobile owns 96.55% of CEC Telecom Co., Ltd., a limited liability company (CECT). The company also owns 100% of Qiao Xing Communication Holdings, Ltd., an international business company (QX Communication Holdings), which owns 90% of Hui Zhou Qiao Xing Property, Ltd. (QX Property), a PRC joint venture, and 90% of Hui Zhou Qiao Xing Communication Industry, Ltd. (HZQXCI), a PRC joint venture. The remaining 10% of each of QX Property and HZQXCI is owned by Qiao Xing Group Limited, a PRC company.
The company's major operating subsidiaries include CEC Telecom Co., Ltd. (CECT), and Hui Zhou Qiao Xing Communication Industry, Ltd. (HZQXCI).
The company operates in two segments, Mobile Phones, and Indoor Phones.
Mobile Phones
The company, through its subsidiary, CECT, develops, produces, manufactures, develops, produces, and sells various mobile handsets based primarily on Global System for Mobile Communications (GSM), global cellular technologies in China. Its products are sold under the ‘CECT’ brand name. The company sold approximately 2.26 million handset products 2006. It has one manufacturing facility in Huizhou, Guangdong Province, China.
The company sells its products primarily to its national and provincial distributors that resell its products to end customers through their own distribution networks, which composes local distributors and retail outlets. QX Mobile’s distribution network includes 7 national distributors, 76 provincial distributors and 2 direct-sales distributors. These distributors sell itss products to approximately 300 local distributors, approximately 4,000 retail outlets and directly to end users in China. In addition, certain of its distributors and other third parties provide repairs and other after-sales services to the company's customers through approximately 200 after-sales service centers located throughout China.
Indoor Phones
The company, through its subsidiary, HZQXCI, conducts the business of the research and development and distribution of mobile phones and the design and distribution of fixed line telephones, wireless telephones and fax machines.
HZQXCI engages in: the design and manufacture through sub-contractors of COSUN-branded GSM mobile phones for its own account; the development and marketing of wired and wireless telephones (indoor phones), including telephones with special functions; and the development and sale of Internet-related products and other consumer electronics products. Its indoor telephones and internet-related products are manufactured by unaffiliated third parties, while its mobile phones are subcontracted to CECT and other third parties.
The company developed CDMA Cityphone handsets for supply to China Telecom Shenzhen Branch. Like the PHS phone, the CDMA Wireless Cityphone is a mobile wireless communication terminal product based on the landline network mainly operated by China Telecom and China Netcom in China.
The company developed and launched a number of wired or wireless phones and Internet-related products, including: Little Smart phones with removable cards; ADSL2, an upstream channel rate and downstream channel rate are much faster; and Home Gateway (residential gateway), a device that acts as a hub between the home environment and the broadband network.
As of December 31, 2006, the company developed and sold approximately 373 corded models and 46 cordless models, 12 models of fax machines, 56 models of wireless fixed phones, 15 models of ADSL, 5 models of Little Smart phones and 4 models of VOIP phones. The mobile phone division of HZQXCI has introduced 37 models of COSUN-branded GSM mobile phones.
The company launched the COSUN-branded GSM mobile handset and has continued its transformation from a sub-contractor of CECT to a designer and distributor of its own brand of mobile handsets. In June 2006, the company received a license from the National Development and Reform Commission (NDRC) to manufacture GSM mobile phones. In the first five months of 2007, the company has launched approximately 10 models of COSUN-branded mobile phones, including the Q8988, a dual call-waiting model with dual PRC SIM card capability, and the S188, a low-end model.
Sales and Marketing
HZQXCI has long-term strategic partnership relationships with China’s telecommunications operators, including China Telecom, China Netcom, China Railcom, China Mobile and China Unicom.
HZQXCI has strategic relationships with distributors of telecommunications terminal products in North America, Latin America, Southeast Asia, South Asia, Europe, the Middle East and Russia. These include Telefonica; Binatone; and Unisonic, a major supplier to Bell South.
Customers
The company's customers include China Telecom, and China Netcom.
Competitors
The company’s competitors in the indoor phones and internet-related products include TCL, Desai, BBK and CHNO in Guangdong. For mobile phones, the company's competitors include GIONEE and Tian Yu.
History
Qiao Xing Universal Telephone, Inc. was founded by Rui Lin Wu in 1992.
