Heng Xin China Executive Director and CEO Mr Xiao Yan said: “Our CA card is a 32-bit encryption product and is the only one that complies with China’s national standard. Being the largest DTT equipment integrator in China, we are poised to benefit from the tremendous demand for wireless DTT network systems integration as the country is on course to switch off analog television broadcasts by 2015.”
The Group has already secured official procurement contracts with DTT network operators in Hunan and Hubei provinces, with the contract sum aggregating to RMB450 million. Similar letters of intent have also been entered into with operators in Hebei and Henan provinces. The Group plans to capture 30% share of the rural DTT market over the next five years, through the conclusion of integration contracts in eight to ten provinces. Furthermore, the Group will seek to sustain growth by injecting certain of the operators’ interests into the Company. In response to the country’s plan for ‘Convergence of Broadcast, Mobile and Internet Networks”, the Group will actively roll out business operations for metropolitan network two-way conversion services, aiming to convert 10 million subscribers in three years. The Group’s goal is to become the largest wireless DTT systems integrator and a top-three investor and operator in two-way conversion for broadcast networks.
As the Group actively responds to the country’s convergence policy, it will leverage on its existing resources in the broadcasting industry to tap further into digital television migration and two-way conversion. It plans to provide broad-band connection, video-on-demand, interactive content and other paid value-added services for the next-generation broadcasting (NGB) network. With its target set to become a top-three non-broadcasting operator in this field, the Group anticipates attractive revenues from cable television operations.
On April 23, the Group announced a business cooperation agreement with Nanchangxian Radio and Television Network Transmission Centre (江西南昌縣廣播電視網絡傳輸中心) pursuant to which, the Group will provide cable digital television two-way conversion equipment and services and jointly develop and operate a range of value-added services for a term of 15 years. The Group is entitled to share 50-70% of net revenues generated from the new value-added services. The initial subscriber base under the agreement will be 500,000, and is expected to reach 1.5 million for the Nanchang area alone.
Further on April 30, the Group announced another cooperation agreement with Anhui Radio and Television Information Network Co., Ltd. (安徽廣電信息網絡股份有限公司) pursuant to which, the Group will provide cable digital television two-way conversion equipment and services and jointly develop and operate a range of value-added services for a term of 12 years. The Group is entitled to the sharing of 40-70% of the net revenues generated from the new valued services. The initial subscriber base as stipulated in the agreement is 1 million, with the base expected to increase to 4 million in two years. The agreement will enable the Group to participate in the provision of television value-added services, and will help it gain market share in conversion and ‘three-net’ convergence. It is also expected to drive the Group’s revenue and profit growth in future.
Mr Xiao concluded: “We will leverage the unique technological support of Beijing Huada Hengtai (北京華大恒泰) to achieve focused developments in digital television systems integration. We aim to tap further into the burgeoning rural digital television market and two-way conversion businesses, with the target of covering 20 million subscribers of DTT and 10 million subscribers of cable digital television. This shall provide sound foundation for our mid-to-long-term development.”
About Heng Xin China Issued by : Through :
Heng Xin China completed a business restructuring in 2008. The Group now holds 93% interest in Beijing Jinqiao Hengtai Technology Co., Ltd. (“Beijing Jinqiao Hengtai”) (北京金橋恒泰科技有限公司), as well as 100% stakes in Zhongze Mingxin Technology Co., Ltd. (“Zhongze Mingxin”) (中澤明芯科技有限公司) and its wholly-owned subsidiary Huzhou Mingxin Microelectronic Co., Ltd. (“Huzhou Mingxin”) (浙江湖州明芯微電子設計有限責任公司). Beijing Jinqiao Hengtai is principally engaged in the design, production and sales of encryption IC, as well as related systems integration services for wireless DTT networks. Zhongze Mingxin is engaged in cable digital television two-way conversion. Huzhou Mingxin is focused on the research and development of wireless digital audio IC for deployment on mobile phones and consumer electronics. The products developed by Huzhou Mingxin have been recognized and used by Philips, with trials being completed by Sony and Samsung for future adoption.
Heng Xin China is the largest wireless digital television network equipment integrator and IC designer in China. It specializes in advanced encryption IC for terrestrial wireless digital broadcast, and is pursuing to participate in the growing digital television market through provision of technology to networks.
Heng Xin China Holdings Limited
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