We are a home and office telecommunications product design company and sell products through telecom operators, major consumer goods retail chains and distributors mainly located in Europe and Latin America. According to the Frost & Sullivan report, the Alcatel brand ranked third in the European home phone market segment in terms of revenue for the year ended December 31, 2016. Our revenue mainly comes from designing, developing and selling licensed trademarks and other customer-branded home and office telecommunications products for the European, Latin American and Asian markets. Since the Group was founded in 2013, we have established a remarkable track record of performance and established relationships with our customers. Our customers include large consumer goods retail chains, telecom operators and distributors, mainly located in Europe and Latin America. We are mainly engaged in the design and development of products and solutions for home and office telecommunications products, sales, marketing and after-sales service. Most of our sales come from licensed products. We generally seek orders from customers in the following ways: (i) directly promote product concepts to them; (ii) respond to customer requests for products or specific product features; or (iii) bid for projects from telecom operators in multiple countries. We outsource the production process of telecommunications products to our production subcontractors because we think this is more cost-effective and allows us to focus on the design and development of new products. Over many years of history, we have adapted to technological changes and are committed to utilizing our product design and sales and marketing capabilities. At the last practical date, our telecommunications product line includes home phones (wired and wireless), office phones (analog and VoIP phones) and other telecommunications products (including IP conference equipment, network cameras and surveillance products). Please refer to the “Our Products” section of this section of this prospectus for details. During the record period, we sold our products under a licensed trademark or Swissvoice brand or the brand of our telecom operator or retail chain customer (if required to do so). We have entered into a licensing agreement with Alcatel Lucent for the exclusive use of the licensed trademarks for the global sale of licensed products, which will expire in 2027. Please refer to the section “License Agreement with Alcatel Lucent” in this section of this prospectus for details. Additionally, we entered into an agreement in November 2016 to acquire the Swissvoice brand and plan to develop product categories sold under the Swissvoice brand. For details, please refer to the section “Acquisition of the Swissvoice Brand” section of this prospectus. We will focus on growing our business by diversifying our product range, improving design and development capabilities, and investing in marketing to generate sales.
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