Dutton Associates Featured Company: Qiao Xing Universal Telephone, Inc. (XING)

Qiao Xing Universal Telephone, Inc. is principally engaged in the sale of telecommunication terminals and equipment, including cord and cordless telephone sets, and the production and sale of mobile phones and accessories, throughout all of China. The company has grown substantially since they first started original design manufacturing (ODM) in 1992, and today has become the fourth-largest domestic manufacturer of mobile phones. Over the years, they have expanded their product lines to cover telecommunications terminals and related products, including conventional fixed line telephone, fixed wireless phones, ADSL, mobile phones, and consumer electronic products.

Through their two primary subsidiaries, CEC Telecom Co., Ltd (CECT) and Qiao Xing Communication Industry Co., Ltd (HZQXCI), they are able to incorporate many of their services and products within China’s booming mobile phone industry. China has one of the largest demands for mobile phones and XING is implementing their two-pronged sales strategy of offering their “CETC” branded phones at the high-end of the market and targeting their “COSUN” branded phones at the mass-market level.

CECT has evolved into one of the leading domestic manufacturers of mobile handsets in China in terms of unit sales volume, as they develop, produce and market a wide range of mobile handsets, with an increasing focus on differentiated products that generally generate higher profit margins. Qiao Xing Communications Industry is one of the largest local indoor telephone players in China and an emerging mobile phone player in China Market, focusing on higher-end indoor phones and economy mobile phones.

The company has an established in-house research and development capacity that is demonstrated through their innovative products. Their PDA mobile phone launched in 2004, multimedia phones began in 2005, mobile phones that possessed the greatest standby battery were introduced in 2006, and information security mobile phones with Five-star ratings commenced in 2007. Additionally, the company launched the first model of LCD telephone sets and the first model of wireless fixed phones in China. The company employs 241 employees for the development of their own products alone. They have also created strong strategic relations with renowned domestic and international telecommunication terminal R&D firms, such as TechFaith (NASDAQ: CNTF), and Longcheer.

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