Nanjing-based Hiteker bought the Hong Kong-listed company IDT International Limited ("IDT International" for short) during the Spring Festival holiday. After the completion of the acquisition, Hiteker will become the controlling shareholder of IDT International, and its product and channel resources will hopefully bring about a favourable turn for the new development of IDT International. Hiteker will also utilise IDT International's technologies and achievements in the field of intelligent hardware products, thereby realising the integration of the whole industrial chain covering design, R&D, manufacturing, and sales.

IDT International has entered a new cycle

Founded in 1977, IDT International mainly embarks on the design, R&D, manufacturing, and sales of lifestyle electronic products. IDT international has been renowned for its innovation capacity in the industry, known as a leader in the field of lifestyle products. Its subsidiary Oregon Scientific is committed to promoting the concept of Smart Living, with a view to enhance people's life quality with its technological wisdom and infinite creativity. It boasts a particularly significant advantage in the field of intelligent hardware, with its children tablets, smart bracelets, portable meteorological instruments etc. sold around the world.

The acquisition will enable the two sides to enter a new stage of development.

First, IDT International will rely on Hiteker's multiple enterprise platforms to enrich its products and its channel in the mainland market, which will bring better sales expectations for IDT International. Backed up by the rich resources of electronic products of Brookstone, its affiliate, Hiteker will inject momentum into the accelerated development of IDT International. IDT International intelligent hardware and health and beauty products will also benefit Hiteker.

Secondly, IDT International and Hiteker share a common orientation in terms of retailing categories, i.e., to create a smart living. The thousands of retail stores of Hiteker's subsidiary Hisap and affiliate Funtalk Telecommunications can not only greatly contribute to IDT International's sales in Mainland China, but also help Hiteker to develop a diversified product structure that features in-house brands, high-tech, and experiential attributes. Therefore, the products and sales channels of the two sides can form a benign complementation with each other.

Leveraging the advantages of Hiteker and Sanpower Group's omni-channel edge, IDT International is expected to release enormous profit potential in the short run, which will exert a positive impact on performance and results of operations of both sides.

Hiteker will realise transformation via leveraging

With the continuous penetration of the Internet economic model and the the changing of business model, traditional IT stores are being struck by e-commerce and household appliance retail stores. Against this background, Hiteker had established the idea of "to realise the transition to high-tech chain that leads the smart living through online and offline synergy, the upstream and downstream synergy of the industrial chain, and the high-tech and experiential attributes of products". In 2014, Hiteker established the market orientation of "Novelty, High-tech, Internet".

The acquisition will help Hiteker improve the the omni-industry chain system of the "Smart Living" electronic products from R&D to sales, and accelerate the transition of Hiteker and IDT International towards to the new high-tech global retail chain industry leaders. Meanwhile, it is also conducive to exhibiting the two companies' resource advantages.