Profile: Qiao Xing Universal Telephone Inc (XING.O)

Qiao Xing Universal Telephone, Inc. (Qiao Xing), incorporated on December 6, 1994, is engaged in the selling of telecommunication terminals and equipment, including cord and cordless telephone sets in the People’s Republic of China, and the production and selling of mobile phones and accessories in the People’s Republic of China. The subsidiaries of the Company include Qiao Xing Mobile Communication Co., Ltd. (QXMobile), which is an investment holding company; Qiao Xing Communication Holdings Limited (QX Communication Holdings), which is an investment holing company; CEC Telecom Co., Ltd. (CECT), which is engaged in the manufacturing and selling of mobile phones and accessories, and Hui Zhou Qiao Xing Communication Industry Limited (HZQXCI), which is engaged in the manufacturing and selling of mobile phones and accessories. On April 6, 2009, the Company completed the acquisition of China Luxuriance Jade Company, Ltd. (China Luxuriance).

QX Mobile and its subsidiary CECT’s business overview

QX Mobile is a manufacturer of mobile handsets in the People’s Republic of China. It manufactures and sells mobile handsets based on the global system for mobile communication (GSM) global cellular technologies. During the year ended December 31, 2008, QX Mobile sold approximately 2.71 million handset products approximately. QX Mobile sells its products to its national distributors, provincial distributors, television direct sales distributors and Internet distributors, which resell its products to customers either directly or through their own distribution networks, which are typically composed of local distributors and retail outlets. As of July 12, 2009, QX Mobile’s distribution network included five national distributors, 73 provincial distributors, 29 television direct sales distributors and one Internet distributor. These distributors sell its products to approximately 300 local distributors, over 3,600 retail outlets and directly to end users in the People’s Republic of China. In addition, certain of its distributors and other third parties provide repairs and other after-sales services to its customers through over 200 after-sales service centers located throughout the People’s Republic of China. In November 2008, QX Mobile also began the online retailing of its VEVA branded handsets directly to customers at its Website, www.vevago.com. As of July 12, 2009, QX Mobile operates six VEVA retail stores in the People’s Republic of China.

HZQXCI’s business operations and product range

HZQXCI designs indoor telephones, Internet-related products and GSM mobile phones. 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. As of December 31, 2008, HZQXCI developed and sold more than 464 corded models and 46 cordless models, 12 models of fax machines, 66 models of wireless fixed phones, 16 models of asymmetric digital subscriber line (ADSL), six models of Little Smart phones and five models of voice over Internet protocol (VOIP) phones. The mobile phone division of HZQXCI has introduced 92 models of COSUN-branded GSM mobile phones.

The Company competes with TCL, Desai, BBK, CHNO, GIONEE and Tian Yu.