The company has released its investor update. NetLinkz Limited (ASX: NET) completed a pilot program with China Telcom Wuxi, Jiangsu Province successfully in December 2018 through its Chinese agent, JAST Limited.
The company is continuing to sell software solution as a replacement of Virtual Private Network (VPN) in broadband bundles with China Telecom through the product catalogues of China Telecom.
JAST limited is ready for expansion into new cities and provinces under Mr. Zhang’s direction to sell the Virtual Invisible Network product as a secured VPN replacement through the China Telecom Catalogue.
Mr. Zhang, who is the Senior President of China Telecom Wuxi has joined the Board of NetLinkz. The successful pilot program with China has enabled JAST to expand its territory just beyond four cities in Jiangsu. JAST awarded a National IP- VPN licence by the Ministry of Industry and Information Technology of the Chinese Government to distribute VPN replacement product throughout China.
Reseller is raising capital in order to fund the accelerated roll-out by JAST beyond the Jiangsu Province and into China. The partnership between JAST and China Telecom will enable the full commercialization of China Telecom’s catalogue offering NetLinkz’s secure VPN replacement Virtual Invisible Network product throughout China. Moreover, the reseller has established a wholly foreign-owned entity in Shanghai, necessary for the reseller to be paid license and service fees by JAST from sales of VPN replacement since the pilot program with China Telecom is completed.
NetLinkz is in partnership with IsoftStone. The engineering excellence of IsoftStone offers NetLinkz the best possible partnership to establish a secured IoT solution for cloud service providers. It has a reputation as a digitization leader in China, providing a total technology solution to more than a thousand customers globally. It has achieved 30% Y-o-Y growth in revenue for the last decade. Moreover, IsoftStone has a diverse customer base across various sectors, which provides the most optimal distribution opportunity in China.
An IoT Lab has been established in the Beijing headquarters of IsoftStone to be closer to the China market, reducing the risk of distribution strategy. The joint IoT Lab of IsoftStone and NetLinkz will enhance the VPN replacement product going forward for distribution by JAST and IsoftStone. It will also develop an SD WAN solution for Cloud, IoT and 5G services shifting NetLinkz to the larger market of cloud providers from telecommunication operators.
On the price-performance front, the stock of NetLinkz Limited is currently trading at $0.040 with ~17.647% increase during the day’s trade (AEST 03:18 PM) and a market capitalization of ~$46.93 million. The stock has generated a YTD return of 9.68% and generated returns of 13.33%, 3.03% and 41.67% over the past six months, three months and one-month period, respectively. It had a 52-week high price of $0.043 and a 52-week low price of $0.022, with an average trading volume of ~ 1,177,285.