NetLinkz further expands its China footprint
NetLinkz Limited’s (ASX:NET) majority-owned entity, the Beijing iLinkAll Science and Technology Co. (iLinkAll), has signed an agreement to provide its Virtual Secure Network (VSN) lite software to Pinnacle, a provider of services to the finance sector.
NetLinkz owns 80% of iLinkAll with an iSoftStone entity controlling 20%.
iLinkAll is a joint venture between Netlinkz through its wholly owned Netlinkz subsidiary Netlinkz Technology Hong Kong Ltd and an entity nominated by iSoftStone Information and Technology.
iLinkAll is approved to sell its products in China and has a 24/7 China wide customer service centre in Shandong, China.
iLinkAll will provide development and technical services in conjunction with its software to Pinnacle Shanghai whose customers include Morgan Stanley, Nomura and Aon Insurance.
The VSN software will provide a secure remote connectivity control system and an information management system platform.
This continues the focus of iLinkAll to provide secure network solutions for large scale projects such as the recently announced World Bank sponsored initiative to improve water supply and sanitation services in selected areas of Deyang Municipality of the Sichuan Province.
Immediate revenue recognition
The one year contract agreement will generate revenues for iLinkAll of RMB 1,000,000 (A$225,000) and will lead to a second phase of revenue generation to provide additional on-premise services and licences according to demand from Pinnacle’s clients.
The majority of the contract will be paid upfront.
Pinnacle will act as the agent of VSN Lite, iLinkAll’s intelligent network security product provided by ilinkAll and to sell iLinkAll network technical services and products for enterprise application purposes.
Pinnacle Shanghai, provides information technology services in various fields such as, web technologies, mainframe, SAP and as a global outsourcing service supplier.
In addition to the Pinnacle contract ILinkAll has signed a contract with another customer, Shanghai M-Soft Information Technology Co. Ltd., to distribute and sell VSN and VSN Lite which will initially generate revenue of 500,000 RMB (A$110,000) and lead to further enterprise sales of iLinkAll VSN product.
M-Soft’s client list includes China Aerospace Science and Industry Co. Ltd., and Abbott Laboratories (Shanghai).
Further opportunities could be on the horizon
The coronavirus shows no signs of letting up and in fact further opportunities for NetLinkz could emerge both in China and in other affected areas as the number of cases now exceeds 80,000, and related deaths are in the vicinity of 2800.
As MarketWatch.com reports, “Because of its genesis in China, coronavirus is both a demand and a supply shock to the global economy,” said Brian Nick, chief investment strategist at Nuveen, in a Tuesday note.’’
It was just a fortnight ago that Finfeed underlined the potential for NetLinkz to play an active role in assisting businesses in negotiating this tumultuous period, and since then the dire consequences of the coronavirus have become even more apparent in China and other global regions.
In discussing the order of this new contract, James Tsiolis, executive chairman of NetLinkz referred to other initiatives linked to the impact of the coronavirus in saying, “We have now engaged with Pinnacle Access Solutions to provide a total solution for networking remotely and securely, following on from our selection by the Beijing Municipal authorities to assist them with the fight against the coronavirus.”
Highlighting iLinkAll’s strong and well regarded presence in China, President Zen Wang said, “I am very pleased that we have signed up Pinnacle and M-Soft as our customers.
‘’Both companies have served the Chinese market for many years and they know the market very well.
‘’These contracts once again demonstrate that our customers recognise iLinkAll’s innovative products and solutions and our engineering capability.”