We procure a majority of the ELV equipment used in our IBS Solutions business and IBS Distribution business from various technology partners. Such ELV equipment includes CCTVs, color videophones, access control systems, CABD systems, SMATV systems, bio-metric security systems and public address systems. In this connection, we constantly seek to enter into distribution arrangements with these technology partners for the sale and distribution of the ELV equipment manufactured by them. Most of our technology partners are based in the United States, Germany, the United Kingdom, Japan, Korea, Taiwan and the PRC. We regularly give our technology partners feedback on the design and specifications of these ELV equipment and related software. As a leading IBS solutions provider in Hong Kong, we believe we can offer our technology partners with a platform to further their market share and achieve further growth with them.
We select the ELV equipment that we distribute based on several criteria which include the function, capability and reliability, the aftersales service and support provided by the technology partner, the cost of their products, the delivery time and credit terms offered, as well as whether such technology partner is the principal manufacturer or the sole agent/distributor for their products.