Anyone just looking at SMGH:
Company Overview
Smooth Global Holdings, Inc. (OTC.BB: SMGH)
The company operates Public Payphone service, VoIP service and International Call Forwarding (ICF) service in P. R. China through its two subsidiaries: Beijing QTC Information & Services Ltd. (Beijing QTC) and Beijing GRT Information Services Ltd. (Beijing GRT).
Beijing QTC, founded in May 2003, is now operating the largest Public Payphone network for fixed line phone users in Beijing city and Zhejiang Province with 369 outlets and 5,600 lines through two distribution agreements with China Netcom Group Ltd. Beijing Branch and Shaoxing Branch. China Netcom Group Ltd. is one of the six telecommunication operators in China.
Beijing GRT, founded in August 2005, launched its International Call Forwarding service for mobile phone users in Shanghai city in China from February 2007, and is now planning to roll out this business into other 20 cities in China within two years. This company is the first, and currently the only, operator of this kind of business in China. The Company aims to be the leading operator in this business.
The company has always been providing communication service. Their professional history makes them better understand China’s communication business and has allowed them to accumulate rich experience and a wide social network. From 1992 to 1999, they mainly acted as an equipment agent and did system integration in the telecommunication business. Their successful cases include: Xiaolingtong System of CECT, integrated billing system and equipment of China Telecom’s “97 Project”, network management system of U.S. Wonder Group, net connection of Israel ECI Company, ADSL modem of Taiwan Heqin, etc. Our market regions include Guangdong, Zhejiang, Shandong, Liaoning, Henan, Yunnan and other provinces. As the market changed, China Telecom’s operators began to develop with outside support.
SMGH began to act as an IP audio products agent and distributor. They cooperated with Beijing NC, Beijing Unicom, Guangdong NC, Zhejiang Telecom, and Zhejiang Unicom. Their business included public phone, audio connection, telecommunication wholesale, etc.
In China mainland (mainly Beijing and Guangdong areas), SMGH possesses 368 public phone service halls and nearly 7000 IP phone users; they are the biggest public phone agent in China.
The company has a self-built exchange platform of 100,000 users and cooperates with domestic operators; they have provided IP phone service for China Kanghui Traveling Agency, China Youth Traveling Agency, Pacific Bond and more than 1000 other businesses. Customers come from traveling, aviation, bond, assurance, banking, and other fields.
After the basic communication need has being satisfied, customers begin to look for more suitable service, which provides the telecommunication business with a new market—value-added communication service.
We will cooperate with major telecommunication service providers, and provide our target customers with value-added telecommunication products approved by Chinese government.
Products and Services
ICF Service for travelers
This business is designed by the company for businessmen to satisfy their needs of communicating with family and saving service fee.
The target customers include:
1. Chinese citizens visiting abroad
There were 31,000,000 in 2005 and 38,000,000 in 2006; it is predicted the number will reach 100,000,000 in 2010.
2. Chinese border trade businessmen
There are more than 500,000 Chinese businessmen doing border trade every year.
3. Chinese students abroad
China has the largest number of students who are studying abroad around the world, and the number is still increasing.
4. Domestic businessmen
There are more than 40,000,000 who conduct sales and technical support and frequently travel among different cities in the country.
Product Functions
1. Receive calls when traveling abroad
Travelers use mobile phone, home phone, or fax phone to receive calls from China.
The Caller pays the local fee; the receiver pays the IP fee.
2. Make calls to China when traveling abroad
Travelers use mobile phone, home phone, or fax phone to make calls to China.
The receiver does not need to pay; the caller pays the IP fee.
3. Hold telephone conference when traveling abroad
Travelers use mobile phone, home phone, or fax phone to make hold telephone conference to China. At most 8 parties can participate.
The receiver(s) in China don’t need to pay; the conference holder pays all the parties’ IP fee.
IP Phone
Business IP Phone is designed by the company for the business users to satisfy mid and small sized companies’ needs of communicating by IP phone.
Product Functions
1. Dial PSTN phone
No local fee exists because dialing dose not pass through local service when business users dial PSTN phone.
2. PSTN phone dials IP phone
Business user applies for traditional telephone number as receiving PSTN and just pays the number fee.
3. Internal calls between IP phones (WAN CENTREX)
No fee exists because dialing between the company’s business IP Phone users does not pass through traditional telephone network
IP Public Paid Phone
IP Public Phone is designed by the company for the public phone market to satisfy the needs of school campuses, factories, military camps, transportation stations, and other places of crowded population.
Product Structure
The 4 connection methods help more public phone providers provide IP service to customers.
114 Mobile Phone Short Message
The users get audio report of telephone number after consulting 114 service, which is quite inconvenient for whose who can not record the number immediately, for example, people who are driving.
The company designs 114 Short Message service to satisfy such needs. SMGH cooperates with China Telecom so that the 114 will send a short message to users as well as report the audio information. The user can read the message on his/her mobile phone.
Market Background for the business of ICF
China now has the largest telecommunication market of the world; almost 600 million Chinese people (44% of the country’s population) use mobile phones. Before 2010, the mobile phone’s users will be half of Chinese 1.3 billion people.
The value of the China telecommunication’s market is staggering. So to operate the value-added telecommunication service market will sure be staggering rising as well. For the first nine month period ending September 30, 2007, Beijing GRT realized revenue of US$985,028 from ICF business in Shanghai city market, with a net income margin of 45%.
Mission & Strategic Objectives
· The Company’s mission is to satisfy customers with cheap, convenient, and high quality telecommunication services.
The Company’s vision is to build the largest value-added voice telecommunication service operator in China.
The Company’s strategic objectives in the next 2 years include:
To become the largest international call forwarding service operator in China;
To migrate to NASDAQ main board from OTCBB within 2 years.
Why Invest In SMGH
Fast growing outbound tourism;
First-mover advantage in the international call forwarding service market;
Profitable service with net profit margin of 30%;
Management team with strong market development capability;
Fifteen years’ partnership with a major fixed line operator helps the company get the best support from this operator.
Leadership
Shuying ZHENG, Chairman of the Board of Directors, CEO and CFO
Ms. ZHENG Shuying, the founder of the Company, has served as the President of Beijing QTC Information & Services Ltd. since May 2003. She is an accountant and was a Chinese C.P.A. ten years ago.Ms. Zheng obtained a Bachelor’s degree in management engineering from Zhengzhou University in China in 1988. Ms. Zheng has 15 years of operational, managerial and financial rich experience in telecommunication industry in China. From 1988 to 1990, Ms. Zheng was a civil servant in Harbin Finance Bureau, with responsibilities for auditing; From 1990 to 1992, Ms. Zheng was a civil servant in Finance Ministry of China, with responsibilities for inspecting; From 1992 to 1999, Ms. Zheng founded and served as the President of Beijing Haodu Science & Technology Development Co., Ltd.; From 1999 to 2003, Ms. Zheng founded and served as the President of Beijing Quantongchang Science & Technology Development Co., Ltd.; Since 2003, she has founded and serves as the Chairman of the Board of Beijing QTC Information & Services Ltd.
Gary Guoqing XU, Senior Vice President and Chief Marketing Officer
Mr. XU Guoqing, the founder of the Company has served as the Chairman of the Board of Directors of Beijing QTC Information & Services Ltd. since May 2003. Mr. Xu is a Senior Engineer. He graduated from Beijing Institute of Posts and Telecommunications in International Telecommunication in 1976. Mr. Xu has 25 years rich experiences in telecommunication technology and business management. From 1976 to 1986, Mr. Xu worked in Beijing Institute of Posts and Telecommunications as a secretary of the President and a director of Foreign Affairs Office of the Institute; From 1986 to 1992, Mr. Xu founded and served as the CEO of Beijing Sanyou Patent Agency; From 1992 to 1999, Mr. Xu founded and served as the Chairman of the Board of Beijing Haodu Science & Technology Development Co., Ltd.; From 1999 to 2003, Mr. Xu founded and served as the CEO of Guangdong Telecom Science and Technology R&D Institute Beijing Branch Co., Ltd.; Since 2003, he has founded and serves as the CEO of Beijing QTC Information & Services Ltd.
Eric Hanquan Gao, Special Assistant of the President and Chief Strategy Officer
Mr. Gao has serves as Special Assistant to the President and CSO working for investor relations. He obtained a Bachelor’s degree in 1978 and obtained a Master’s degree in Economics in 1981 from University of Toronto in Canada. Mr. Gao has 20 years rich experiences in the field of international finance. From 1983 to 1998, he has worked in three C.P.A. firms of Toronto and London; From 1998 to 2002, he was a partner of Oceanic Securities LLC in Canada; From 2002 to 2006, he was a senior partner of First View Capital Group; He has acted as a senior V.P. taking charge for fund raising and investor relations of the Company since October 2006.
Meifeng LIU, Director and Financial Manager
Ms. Liu has serves as the manager of the financial department since May 2003. She is a Accountant. She studied accounting at Renmin University of China during 1996-1999. Ms. Liu has 22 years of financial experience. From 1980 to 1996, she worked in Beijing Glass Factory as a worker and a accountant; from 1999 to 2003, she worked and served as a financial manager in Beijing Zhonglian Architecture & Decoration Engineering Ltd. She was appointed to act as a director of the Company on March 28, 2007.
Qing YU, Vice President and Chief Technology Officer
Ms. Yu has serves as our V.P. and CTO since December 2006. She is a Senior Engineer. Ms. Yu obtained a Bachelor’s degree in radio engineering in 1998 and obtained a Master’s degree in communication and information systems in 2005 from Beijing University of Posts and Telecommunications. Ms. Yu has 12 years of operational and managerial experience in telecom industry in China. From 1988 to 1998, Ms. Yu worked and served as an engineer in Telecom Science and Technology R&D Institute of Posts and Telecommunications Ministry of China; from 1998 to 2002, she was a sales director for Chengdu and Chongqing offices of Beijing Representative Office of Aeroflex Group Ltd., a famous American company founded in 1937.
Lin XIONG, Chief Accountant
Mr. Xiong has served as the Chief Accountant since November 2006. He is a professor level Senior Accountant. Mr. Xiong obtained a Bachelor’s degree in finance from Renmin University of China in 1985. Mr. Xiong has 22 years of financial experience. From 1985 to 1993, he was a civil servant in Beijing Finance Bureau; from 1993 to 2006, he worked and served as the Financial Manager in China National Complete Plant Import & Export Corporation (Group).
Yiwen FU, Chief Operating Officer
Mr. Fu has served as COO since May 2006. He is a professor level Senior Engineer. Mr. Fu graduated in International Telecommunication from the Beijing Institute of Posts and Telecommunications in 1976.
Mr. Fu has 25 years rich experiences in telecommunication technology and operation. From 1976 to 2006, he worked and served as the Chief Engineer of the Long Distance Telephone Bureau of Sichuan Province and the director of the Network Management Center of Sichuan Telecommunication Co., Ltd.
