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NetLinkz expands Chinese distribution network

Technology
ASX:NET      MCAP $11.63M
07 August 2019 23:38 (AEST)

Virtual network company NetLinkz has seen shares spike more than 12 per cent today after expanding its Chinese distribution network.

A Strategic Cooperation Agreement (SCA) has been signed between Sichuan Meixunda Communications Corporation — a subsidiary of China Communicaions Services Corporation — and NetLinkz’ China-based reseller JAST Limited.

China Communications Services boasts being the largest telecommunications infrastructure service group in the country. It controls over 100 companies, and among its customers are China’s three major telecom operators — China Telecom, China Mobile, and China Unicom.

NetLinkz gives customers secure and efficient cloud network solutions. It is the inventor of the Virtual Invisible Network (VIN) product, which is typically used by military organisations or Fortune 500 companies to connect devices to each other without needing to pass through a centralised point.

With no centralised point, the network system is incredibly secure because it essentially becomes invisible to potential intruders. As the company puts it, “it is difficult for intruders to hack a network that they can’t see”.

Sichuan Meixunda is the number one reseller into China Telecom Sichuan, and has confirmed that it will add the NetLinkz VIN product to its sales catalogue.

Sichuan Meixunda services 20 cities in the Sichuan Province which have a combined population of 81 million people. On top of this, Sichuan Meixunda owns 381 retail stores, employs over 1800 people, and is a direct reseller of Huawei and Samsung.

JAST CEO Yang Chuan said the company is excited with this new partnership.

“The cooperation with Meixunda will start from Sichuan Province, and gradually expand to the five southwest provinces in China. It is a fantastic opportunity for the distribution of NetLinkz’ products,” Yang said.

NetLinkz shares are up 12.5 per cent at 3:05pm AEST today, trading for 22 cents per share in a $357.80 million market cap.

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