Qiao Xing Mobile Communication Co.,Ltd is one of the leading domestic manufacturers of mobile handsets in China in terms of unit sales volume. QXM manufacture and sell mobile handsets based primarily on Global System for Mobile Communications, or GSM, global cellular technologies. QXM operates business primarily through CEC Telecom Co., Ltd., or QXMC, our 93.4%-owned subsidiary in China. Currently, all of our products are sold under the ‘‘QXMC’’ brand name. QXMC possesses the most advanced mobile phone R&D and output capabilities. It predominate the technology of GSM, GPRS, PDA, CDMA mobiles and value-added services, of which technology 2.5G & 3G’s GSM and CDMA are in the same phase with the advanced worldwide technology. Currently QXMC administers Beijing R&D Center and Huizhou R&D Center which have great strength and play an important role in respect of software technology and industry design in domestic mobile phone industry.