This is a pretty exciting company. A long time ago (as Xin Net Corp) they were in the DNS business in China. In fact, they were one of the leading Domain Naming Service companies in China (China-DNS), but sold off the business when DNS services became highly commoditized (as happened in the US as well). As a result of that business, they have a database of more than 500,000 Chinese corporations.
Recently, the company acquired QuickNet. QuickNet is a mobility solutions company, focusing on short-messaging (SMS) infrastructure for corporate clients.
There are over 1 billion short messages sent per day in China, and mobile phone user must use access phone numbers (much like a toll-free phone number in the United States) to access these messages. And access them they do. Short Messaging is a way of life in China. Mobile phone use is horribly expensive (between $0.70 and $1.00 per minute!), but short messages (text messages) are very, very cheap (under $0.01 per received message). Everyone in China (or so it seems) is busy typing away on their mobile phones, sending and receiving messages 'round the clock. Like I said, this is a way of life over there.
CHMS has licensing agreements with both mobile phone companies in China (China Mobile and China Unicom), allowing their messaging infrastructure to send messages via these two access numbers (1111 through CM, and 9111 through CU). There are currently more mobile phone users in China than there are people in the United States. This is big, big business over there.
CHMS has developed messaging solutions for corporations, including Office Automation, Police Services, Mobile Banking Solutions, and Mobile Tax Solutions. The company currently has more than 6,000 corporate clients using their messaging infrastructure, and they add more clients everyday.
Recently they announced a reverse split of their stock on a 1 new for 3 old basis. This is a company that knows its markets, has executives in place that are very well connected throughtout China, and has already begun to build a huge base of corporate users. They are very well positioned to absolutely become the 800 pound gorilla in this sector, as most other SMS companies are focused on the consumer side of the equation.
The management team was introduced today, as was their trading symbol change. I guess this means the reverse split will be effective any day now. This generally means a litte shake-up, followed by everything settling back down, and then onto the business of doing business.
If you're interested in Chinese companies that show huge potential, this is absolutely one of them. I would definitely keep an eye on this company.