I received this via e-mail this weekend and it looks very
promising. Does anyone have anymore info on this company?
I've heard from a couple of sources the promo is kicking off
and the stock should really start moving next week.
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XIN NET TECHNOLOGIES INC. (XNET-BB)
52 Wk High: $1.03 52 Wk Low: $0.15 Recent Price: $0.71
"Capitalizing on China's Emerging Internet Marketplace"
Shares Outstanding: 14.1 million
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August 2nd, 1998
Xin Net Technologies, Inc. through its wholly owned subsidiary
Infornet Investment Corp., has a joint venture agreement with
Xin Hai Technology Development Ltd.; an experienced Internet Service
Provider based in Beijing China. The agreement provides Xin Net with
100% participation in Xin Hai's expansion.
It is the Company's objective to capitalize on the booming Chinese
Internet market, which so far has been restricted to Chinese companies
only.
Xin Hai Technology Development Ltd.
Xin Hai started business in 1993 and successfully applied for one of
the 31 ISP licenses last year. On top of simple Internet access
service, their also offer value-added services including World Wide
Web server hosting and integration services, client software and
security products, training and network integration, as well as
consulting services. The most successful product is an "Integrated
Corporate Electronic Mail Service Platform" providing a variety of
value-added services to corporate clients. These services include:
Mail-Fax - This is an Internet Fax service. Clients would send their
fax messages locally to Xin Hai. The messages will then be sent
through the Internet to established proprietary service centers in
Europe and North America, and in turn faxed locally (or long distance)
to its final destination. This service eliminates the costly overseas
long distances charges originating from China.
Mail-Pager - This is an e-mail Pager service. This service is aimed
at the growing population of Pager users, estimated to be 60 million
today and reaching 200 million by the year 2000. Recipients of e-mail
will be alerted through their Pagers to go to a computer and check
their mail. This service enables people without regular access to
computers to use e-mail on the Internet. As China now has several
countrywide Paging networks, this service is widely accepted,
especially by business travelers within China.
Mail-Cellular - Similar to Mail-Pager, users will receive a call on
their Cellular Phone instead of their Pager. China also has a
countrywide Cellular Phone network, so this service also provides
coverage for the whole country.
Mail-Fax - This is an e-mail to Fax service, aimed at un-computer
oriented users providing them with hard fax copies.
Since 1993, Sin Hai has grown from an investment of 150,000 Renminbi
(US$18,000) and 8 employees to a company with over 80 employees and 10
million Renminbi (US$1.25 million) in assets. Xin Hai's competitive
advantage resides in its software capabilities, connections with the
Ministry of Posts & Telecommunications and understanding of the
Chinese user market. The "Integrated Corporate Electronic Mail
Service Platform" is a good example. The system is software driven,
developed completely in-house and aimed at various niche markets. The
ability to utilize these competitive advantages forms the cornerstone
for the Company's future growth.
Growth Strategy
Management is committed to becoming a significant Internet player in
the China market. It is essential to establish a critical subscriber
base with countrywide coverage. Xin Hai has a long and successful
relationship with the MPT and the Beijing Telecommunication
Administration Bureau. Through their working relationships, Xin Hai
plans to work with other local Provincial Telecommunications Bureaus
and open sales and service offices in Shanghai (east), Shenyang
(north-east), Guangzhou (south), Wuhan (middle), and Chengdu (west).
Together with headquarter in Beijing (north), Xin Hai will provide
Internet service coverage for the whole country. Beijing office has
been operating since April 1997 and Shenyang office since October
1997.
Xin Hai had recently signed a joint venture agreement with Unicom
China to offer their e-mail to Pager service to Unicom's customers.
Unicom is the only authorized telecommunications service company in
China besides the MPT. By the year 2000, Unicom is projected to have
10% of the China's long distance market and 30% of the cellular
market. They currently have a total of 400,000 pager users throughout
China. Xin Hai's e-mail to Pager and other Internet related products
and services will be offered to all new Unicom subscribers as well as
their large existing subscriber base. Together with a dedicated
marketing and advertising effort, management expects to achieve a 10%
market share in the above 6 cities.
On a longer-term basis, after a subscriber base is established,
management intends to start Internet advertising (similar to North
American companies such as Yahoo) and other large audience services.
Barrier to Entry
The MPT controls all licensing and pricing. There is no indication
of any rule changes so the barrier to obtain an Internet license is
still substantial. Therefore time is of the essence for Xin Hai to
build a large subscriber base before any changes can occur.
XNET now stands poised for rapid growth over the coming months.
Start your due diligence early, because the potential here is
tremendous.
For futher information please call: (604) 685-1978
--
courtesy of:
NETWiRE! by Watkins ONLiNE!
Vancouver, British Columbia, Canada
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