We are principally engaged in supplying digital and optical network equipment to cable
system operators in the Henan Province of China. We have developed a line of internet
protocol television ("IPTV") set-top boxes that are used to provide bundled cable
television, Internet and telephone services to residential and commercial customers. We
have assisted in the installation and construction of over 400 local cable networks
covering more than 90 municipal districts, counties, townships, and enterprises. Our
services and products have been recognized with various certifications, including
"integrated computer information system qualification class III" issued by the Ministry of
Industry Information, "communication user cable construction enterprise qualification"
issued by the Henan Province Administration of Communication, "Henan Province
Security Technology Prevention Engineering Qualification Class III", a certificate of
"ISO9001: 2000 Quality System Authentication", and "Double High" certification, high
tech product and high-tech enterprise issued by the Henan Province government.

The Company has also launched a commercial line of GPS devices and support services
for transport-related enterprises to track, monitor and optimize their businesses.

At present, we have two main client segments. First, relating to our IPTV products and
our legacy cable networking equipment products, our main customers are broadcasting
TV bureaus and cable network operators serving various cities and counties within Henan
Province. We have over 30 main customers, including the broadcasting TV bureaus and
cable network operators of the cities of Nanyang, Mengzhou, Xuchang, Pingdingshan,
Kaifeng, Zhoukou and Gongyi, and the counties of Yuanyang, Luoning, Neihuang,
Yinyang, Xixia, Kaifeng, Nanzhao, and Gushi.