Mr. Xu: The company was founded back in 1998. We sold multimedia broadcast equipment to cable operators in China in the beginning. Today we are the number one conditional access solution provider in China. Our products and services enable operators to protect broadcast content and manage subscribers access with ease. The current conditional access product solutions are actually our third generation of products addressing the needs of cable operators all over China. In the past few years smart card sales, which is the most important piece of our conditional access system, contributed about 90% of our revenues. We also have other revenue sources from licensing and royalties, which we charge from the set-top box makers in China. That's pretty much how China Digital TV makes money. What we are trying to do here is to leverage on the 50% market share we have achieved in China, and create diversified, value-added solutions for cable operators and share revenues with the operators.
TWST: Tell me about your own background and those of the key members of your
team.
Mr. Xu: I was a founding member of the company. I started with the company back
in 1998 and after a couple of years of working there, I went to the US for my
MBA studies, and I came back to China in 2003. I spent a couple of years working
for multinational companies, including Intel and another prestigious private
equity fund, CDH Investments. I rejoined the company in 2006 and it took me a
year to take this company public. As far as the other key members of our team,
the two founders have been working for the company for 11 years. That's our CEO
and Chairman. As for our CTO, he had 10 years of work experience with this
company. All of them graduated from the same university, which is Tsinghua
University - sometimes people call it the MIT of China. They all got their
engineering degrees, and they almost spent their entire careers with this
company.
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