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SmartTrans secures major China deal

28.08.2015 12:13



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SmartTrans is entering the China logistics market with contract with Yanfeng Visteon Automotive, a major subsidiary of China’s largest auto manufacturer.

Australian mobile and online payments platform and logistics software provider SmartTrans Holdings Limited has expanded the company’s logistics division into China, by securing a contract to develop and supply its proprietary software to automotive components manufacturer Yanfeng Automotive Trim Systems Co. Ltd (‘Yanfeng Visteon Automotive’).

SmartTrans has been chosen by Yanfeng Visteon Automotive to supply a module of the company’s best-of-breed logistics software. The proven and established system, which uses mobile internet connectivity to provide information and evaluation of driver performance, safety, route optimisation, fuel efficiency and which can also reduce greenhouse gas emissions, was selected for implementation with an initial 450 vehicles commencing in Shanghai this month. Under the terms of this agreement, SmartTrans will earn revenue from an upfront payment and also via a monthly per unit licensing fee.

This partnership will also provide SmartTrans with exposure to the fast growing connected car sector, which enables internet connection in vehicles for a variety of purposes, including the potential for integration with SmartTrans existing payment platform. Worldwide revenue from the sale and supply of connected car products for the passenger vehicle segment alone is anticipated to reach approximately US$149 billion by 2020, with China expected to maintain its position as the largest market.

The Yanfeng Visteon Automotive group is a subsidiary of Shanghai Automotive Industry Corporation (SAIC), a state owned enterprise (SOE) that is China’s largest car manufacturer and which also has joint venture agreements with numerous global vehicle manufacturers.

Headquartered in Shanghai and with operations in over 20 countries, Yanfeng Visteon Automotive specialises in the design and manufacture of automotive seating and electronics, including instruments, navigation, audio, ‘infotainment’, security, control and safety systems. The company has supply, OEM and joint venture agreements in place with a number of leading marques, among them Mercedes Benz, Volkswagen, Fiat, Nissan, Ford, General Motors and Chrysler.

SmartTrans managing director Bryan Carr said: “This is a fantastic milestone for SmartTrans and a huge vote of confidence in the performance of our technology as well as a great endorsement of the credibility of company itself. We have worked long and hard to establish our presence in China and this hard work is now paying off in the form of contracts such as this, which take time and a commitment to the market to secure.

“We have been deliberately selective and strategic as to how we expand our logistics division into China, and for SmartTrans to secure a partnership like this with the major subsidiary of such a large and esteemed SOE is a huge achievement. We are honoured to have been chosen as the preferred partner to supply software and services to Yanfeng Visteon Automotive.

“Critically, this contract provides a valuable entry point for our logistics software into a large and rapidly expanding market and delivers a new revenue opportunity in China for our established software. With the connected car sector growing at a rapid rate in this market, we are excited to be a part of it and see a natural fit for our logistics business with the opportunity to integrate our mobile payment systems.

“We will now work closely with the Yanfeng Visteon team to develop and deliver this software with a view to promoting and distributing our software to others in the auto sector in China. Also, we are jointly assessing opportunities to immediately sell an after-market logistics software product for commercial vehicles in China. Distribution channels are being reviewed and we believe this opportunity represents a new potential revenue driver for our logistics business.”

Mr Carr added that the recently completed $5.5 million capital raising has given SmartTrans the financial flexibility to fast-track the growth of both its SmartPay division in China, and now its logistics business in both Australia and China. The company has the necessary skills and resources devoted to grow both business units.

 

Source: http://www.tandlnews.com.au/


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