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Addvalue secures deal for Chinese market

19 April 2016

Addvalue Innovation Pte Ltd has, in furtherance to its alliance forged with Zhongyou Century (Beijing) Communications Co., Ltd. 中邮世纪(北京)通信技术有限公司 (“Zhongyou”) pursuant to the collaboration agreement entered into on 12 November 2015 with a view to distribute satellite communication-based products and provide customized solutions for the communication needs in China, including but not limited to the ‘Belt and Road’ initiative (一带一路倡议) spearheaded by China, entered into a three-year distribution contract with Zhongyou to supply satellite communication terminals and provide related support services to the China regional maritime vessels market estimated to comprise more than 300,000 vessels. The first batch of supply, totaling about US$4 million, under the distribution contract signed, shall commence delivery from May 2016 and be completed by November 2016 and will contribute positively to the financial performance of Addvalue for the financial year ending 31 March 2017.

Zhongyou, a subsidiary of China National Postal and Telecommunications Appliances Corp. 中国邮电器材集团公司 ("PTAC"), has been actively pursuing commercial opportunities in the under-served and cost-conscious small vessel market.

“The ability to provide very affordable and yet reliable communication services is essential to improve the quality of life of these under-served communities in terms of operational efficiency and the safety of the crew members”, said Mr Xiao Jian Shen , Vice President of Zhongyou. He added that “PTAC is confident that Addvalue’s equipment and its indigenous support services in China will fulfil such needs”.
Mr Tan Khai Pang, Chief Operating & Technology Officer of Addvalue, remarked that “our alliance with Zhongyou signed last November has led to this tangible collaboration. Not only will it enable us to build a solid foundation in the vast China small vessel market over the next three years, it also marks another major breakthrough for Addvalue’s foray into the China market”.

Mr Tan further added that “Addvalue has a wide repertoire of products and technical capabilities that will help a partner, such as PTAC, to develop its business into the satellite communications arena. This is indeed exciting times as such opportunities will inevitably latch us onto the promising China ‘Belt and Road’ initiative”.