Notice of Business Alliance Basic Agreement Reached with aisidi (深圳市爱施德股份有限公司) of China on a Comprehensive Business Alliance in the Used Smartphone Trade-in and Distribution Busines
January 25, 2017
Aucnet Inc. (headquartered in Minato-ku, Tokyo; Kiyotaka Fujisaki, President and CEO; hereinafter “Aucnet”), an information distribution service provider, on January 25 reached a basic agreement on a comprehensive business alliance in the used smartphone trade-in and distribution business in China with 深圳市愛施徳股份有限公司 (headquartered in Shenzhen, China; Huang Wenhui, Chairman; hereinafter “aisidi”), a major smartphone distributor listed on the Shenzhen Stock Exchange.
|Official name, representative|| 深圳市爱施德股份有限公司(Shenzehn Aisidi Co.,Ltd)
FY2015: 50.0 billion yuan (850.0 billion yen [1 yuan = 17 yen])
Sales of mobile phones and digital devices, communications
services,China’s largest domestic distributor of mobile phones
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 in 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 y
ears 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.
■Mobile market in China
The population of China is slightly less than 1.4 billion, more than 10 times that of Japan, which is about 130 million. In 2015, the volume of shipments of new smartphones in Japan was in the 30 million unit range, while in China the volume is said to have been over 400 million units, or more than 13 times that of Japan. The volume of shipments of the iPhone with its high brand value was a little less than 15 million units in Japan in 2015, while in China more than 40 million units are said to have been shipped. Consumers replace their smartphones about once every 1.5 years. According to a survey, every year 20 million units of the iPhone are replaced, and used terminals are generated.
(The source of unit sales in China is SINO Market Research Ltd., and in Japan it is MM Research Institute, Ltd.)
■Outline of the business alliance
Combining aisidi’s relationships with major carriers in China, the nationwide smartphone sales network, and brand recognition among consumers, with Aucnet’s expertise in the used smartphone distribution business operated by Aucnet Digital Products Inc. (headquartered in Minato-ku, Tokyo; Shinichiro Fujisaki, President and CEO), data erasing technique, and buyer network, the two companies will form a comprehensive business alliance primarily in the business fields below:
(1) Trading-in of used smartphones with end users in China, the collection of used smartphones, and the promotion of trade-ins
(2) Improving the used terminal distribution market to encourage the replacement of terminals and contribute to the carriers and manufacturers of terminals
(3) Promoting recycling to contribute to environmental protection and society
Through this business alliance, aisidi and Aucnet will be committed to revitalizing the used smartphone distribution market in China and will benefit a wide range of stakeholders in China, including end users, carriers, manufacturers of terminals, the environment, and society.
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 distribution volume 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.
Aucnet Inc. General Planning Department MAIL：firstname.lastname@example.org