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The Group is a market leader in the distribution and marketing of rechargeable battery packs for mobile phones in the People's Republic of China ("PRC") under its own brand name of "SCUD 飛毛腿". The Group has also further broadened its product range and developed compatible rechargeable battery packs for other 3C products, including notebook computers, digital cameras and other portable electronic devices in order to enlarge the Group's revenue sources and enhance its market competitiveness.
The Group has been developing its brand name of "SCUD 飛毛腿" since 1997. As at 31 December 2007, the Group's own "SCUD 飛毛腿" brand products comprised approximately 2,800 models of rechargeable mobile phone battery packs which are compatible with approximately 3,100 mobile phone models. During the year, the number of fi rst tier distributors of the Group has exceeded 360, at least over 180 are exclusive distributors, with over 35,000 points of sales. Fundamentally, the fi rst and second tier cities in the PRC with high consumption power have been covered and a stable and extensive sales network has been established.
The Group's own brand business uses "SCUD 飛毛腿" as its sales brand name and is well known in the PRC. Since the Group launched its "SCUD 飛毛腿" products, four major product series, namely "Business Series 商務系列", "Gold Series 金品系列", "Standard Series 標準系列" and "Economy Series 經濟系列", have been developed to cater for the needs of different consumers. In the past fi ve years, the sales of the Group's own brand rechargeable battery packs grew signifi cantly with approximately 25 million pieces sold in 2007, which is 6.6 times of the fi gures in 2003 (approximately 3.8 million pieces) and refl ected rapid growth of the Group as the brand has gained extensive popularity in the market. In addition, the Group also engaged in original equipment manufacturing (OEM) business, supplying original rechargeable battery for renowned mobile phone manufacturers such as Lenovo, Huawei, ZTE, UT Starcom, Sangfei, Hisense, Haier and etc.
To further develop the Group's market segments, the Group entered into an agreement to acquire the principal operating assets of one of its largest competitors "Chaolitong 超力通" in December 2007. "Chaolitong 超力通" has strong retail networks in rural areas, second tier and third tier cities and could complement the Group's networks in fi rst and second tier cities. The Group believes that the different advantages from the two brands will be benefi cial for reducing the cost and market competition risks in the Group's rural market expansion and increasing the productivity, lowering integrated costs and enhancing effi ciency of the Group. With the inclusion of "Chaolitong 超力通" after the acquisition, the Group's points of sales will reach 50,000, forming an extensive network with national market coverage.
updated 24th October, 2008
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