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Aucnet Begins Full-Scale Joint Venture for Smartphone Trade-in and Distribution Business in China with aisidi (China) and Blancco Technology Group (United States)

2017/3/30

Aucnet Inc. (headquartered in Minato-ku, Tokyo; Kiyotaka Fujisaki, President and CEO; hereinafter “Aucnet”), an information distribution service provider, on March 30 launched a full-scale joint venture for a smartphone trade-in and distribution business in China with Shenzhen Aisidi Co., Ltd. (headquartered in Shenzhen, China; Huang Wenhui, Chairman; hereinafter “aisidi”), a major Chinese smartphone distributor listed on the Shenzhen Stock Exchange and Blancco Technology Group (headquartered in Georgia, United States; Patrick Clawson, CEO; hereinafter “BTG”), a global leader in data erasure and handset diagnosis listed on the Alternative Investment Market (AIM) of the London Stock Exchange.

■ Overview of the Smartphone Market in China

The smartphone market in China has undergone rapid expansion since around 2010, and is today said to have grown to more than ten times the size of the Japanese market. On the other hand, systems to protect personal information, along with the trading-in and distribution of used smartphones, have not kept pace with the market. These issues have brought about the urgent need to develop a safe and secure market.

– Annual used smartphone shipments in Japan for 2016:29.2 million units*1
– Monthly smartphone shipments in China for the single month of January 2017:45.03 million units*2
*1 Source: IDC JAPAN
*2 Source: China Academy of Information and Communications Technology

– Compared with other countries, the protection of personal information is not considered to be sufficiently developed.
– At the same time, communication between users via smartphone and electronic payments are advancing rapidly on a widespread scale.
– In recent years, used handset trade-in businesses have launched, producing a flood of trade-in services. The trade-in prices are extremely low, the safety of personal information is not always guaranteed, and various troubles have occurred.

■ Developing a Safe and Secure Smartphone Trade-in Service in China through a Joint Venture between Three Companies

In the Chinese smartphone market described above, three companies will launch “CooDoo” (Chinese: 酷兜) a consumer-oriented brand for a used handset trade-in and distribution service. The endeavor will utilize the respective strengths of the three companies to establish and offer the safest and most trusted used handset trade-in service in the Chinese market.

<Strengths of the Three Companies>

aisidi

Aisidi maintains close relationships with China’s three largest carriers, China Mobile, China Telecom and China Unicom as their strategic partners and has a network of more than 20,000 distribution agents throughout mainland China. It has developed its own distribution network, and enjoys strong consumer brand recognition as a comprehensive service company engaged in the sale of digital products and communication.

BTG

BTG represents the global standard in data erasure and handset diagnosis, and has obtained numerous certifications from government organizations and digital product industries around the world.


Aucnet

Aucnet has more than a decade of experience and expertise in B2B auctions and distribution for used digital products, and maintains a high-quality, global network of buyers.

In addition, according to research by the major US-based trade-in firm Recellular *6, some 100 million used mobile phones contain an estimated 1,600 tons of copper, 35 tons of silver, 3.4 tons of gold and 1.5 tons of palladium. By promoting of the trade-in and distribution of used handsets, the three companies aim to contribute to the environment and society by effectively utilizing resources.

Aucnet Inc. is a pioneering company in the B2B distribution of used digital devices. Since 2005, Aucnet has been thoroughly inspecting used digital devices and erasing data for safe and secure distribution. Over the past few years, the volume of distribution of used smartphones, in particular, has been expanding rapidly. Aucnet will actively continue its efforts to expand the used smartphone distribution business in Japan, China, and other markets in Asia.

About aisidi

Founded in June 1998, aisidi was listed on the Shenzhen Stock Exchange in China on May 28, 2010. The company’s main business is selling mobile terminals for China’s three largest carriers, China Mobile, China Telecom, and China Unicom as their strategic partner. It has 26 branches nationwide and a network of more than 20,000 distribution agents in all 31 provinces of China. Unit sales of smartphones in FY2015 were a little more than 24 million units. In addition to the sale of mobile terminals, since its foundation aisidi has developed business in fields such as mobile terminals, digital products, communications services, mobile Internet, and finance. Currently, its main business fields are smart devices, Internet, the sale of mobile devices, and financial services. It aims to become a comprehensive channel service company with the highest enterprise value in China.
Almost 20 years since its foundation, aisidi has grown to become a leading mobile terminal distributor in China and has been chosen as one of the Fortune 500 Chinese Companies, the top 500 Chinese private enterprises, the top 500 Chinese companies, and the top 100 private service providers in China.

About BTG

Since it was established in Finland in 1997 as Blancco Oy Ltd., BTG has expanded to locations across the globe, providing data erasure solutions to companies and government organizations in various countries. Today, the company has been reorganized into Blancco Technology Group plc. In addition to adding device diagnostic solutions to its lineup of services, BTG relocated its headquarters to the state of Georgia in the United States, and has grown into a global company listed on the Alternative Investment Market (AIM) of the London Stock Exchange. To date, BTG has shipped a cumulative 100 million licenses for its data erasure software worldwide. It also boasts 20 million such licenses in Japan, and is recognized as the standard in data erasure software used in more than 100 countries. As a global leader in data erasure, BTG touts its “Certified Data Erasure” to earn the trust of enterprise users and has obtained produce certifications from government organizations in various countries, along with its development structure and product safety evaluation based on the ISO15408* international standard.

*ISO15408: International evaluation criteria for IT security

【Corporate Information】

Company Name:
Head Office:
Representative:
Established:
Capital:
Consolidated Sales:
No. of Employees (Consolidated):
Stock Listing:

Aucnet Inc.
Aoyama OM Square, 5-8 Kita-Aoyama 2-chome, Minato-ku, Tokyo, 107‐8349, Japan
Kiyotaka Fujisaki, President and CEO
June 29, 1985
5,804 million yen (as of January 1, 2017)
19.9 billion yen (year ended December 2016)
583 (as of January 31, 2017)
1st Section, Tokyo Stock Exchange

■Inquiries————————————————-
Aucnet Inc. General Planning Department:Tsuchiya, Yoshioka and Kashima 
Email : request@ns.aucnet.co.jp



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