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Redtone International Bhd, a telecommunications solutions provider, sees significant progress coming from its China operations, mainly driven by both geographical and product expansion.
REDTONE ASIA INC., THE SUBSIDIARY OF ACE market listed Redtone International Bhd, which is currently engaged in providing discounted calling services and telecommunications related value added services in the People's Republic of China, is set to enjoy better growth going forward.
The Redtone's China operations contributed 16% to the company's overall turnover last year and was the most profitable segment, posting a pre-tax profit of RM5.6 million in FY2010 ended May 31.
In fact, Redtone Asia was valued at US$22 million (RM67 million) last year - already nearing Redtone's market capitalisation of RM90 million. This valuation was imitative after Redtone's reverse takeover of Hotgate Technologies Inc, a company that was listed on the US OTC Bulletin Board last year. In the exercise that was completed in October, Redtone ended up with 92.3% of Hotgate Technologies, which was formally renamed Redtone Asia last March.
Today China looks set to contribute more to Redtone's bottom line as its pre-tax profit is expected to jump at least two-fold.
And not too long ago, Redtone Asia bought a 100% stake in China's Shanghai QianYue Business Administration Co Ltd (QBA) in a move to expand into the prepaid shopping card business, which has tremendous growth potential in the republic.
Redtone managing director Wei Chuan Beng says the China market's potential is extremely huge and `Redtone is just only starting.'
Redtone's China business started in 2006 with prepaid discounted call services for consumers in Shanghai where its customer base currently is more than two million and these customers are supported by a 40,000-strong dealership network.
Basically, backed by a proprietary software platform called E-Account Management System, Redtone Asia provides e-sales and distribution for prepaid services such as mobile airtime, gaming reloads, discounted call...