Innocom Technology Holdings, Inc. (The Company) (OTCBB: INCM) is a leading mobile communications technology company based in Hong Kong . With operations in Hong Kong , the Company is currently one of the largest independent mobile handset design houses in the People's Republic of China . The Company was incorporated under the laws of the State of Nevada on June 26, 1998 , and began trading on May 5, 2006 on the Bulletin Board. In March 2006, the Company acquired and wholly owns entire interests of Innocom Technology Holdings Limited which was founded in October 2004. After the acquisition, the Company has two principal lines of business: mobile phone handset design and the trade of mobile phones, handsets, and components. The Company provides complete design services spanning the entire handset pre-production cycle including industrial design, mechanical design, software and hardware design, component selection and sourcing, prototype testing, pilot production and production support.
The Company wholly-owns Beijing Unismobile Communication Technology Co., Ltd., a firm providing customized mobile handset design to licensed manufacturers. The Company adopts technologies for mobile handset design from third party licensors. To cost effectively streamline the development-to-market process, licensed manufacturers outsource the design of new products to independent design houses, such as Innocom Technology Holdings, Inc., and then sell the final product under their own brand name to the retail market. The Company also relies on third-party suppliers for manufacturing handset modules and components as well as complete handsets. The Company's customers include leading Chinese mobile handset brand owners such as TCL, CECT, Cosun Communications, Panda Communications and Zhejiang Holley Communications Group Co., Ltd.
The Company generates revenues via a three tiered business model. Revenues are derived from the provision of total mobile handset design solutions to clients negotiated on a project by project basis. Additionally, the Company collects royalty fees from handset manufacturers once a client begins commercial production of a handset. The royalty is levied on each printed circuit board shipped or on a lump sum basis. The Company also receives monies from the sale of complete mobile handsets and components. In addition to providing a full service mobile handset design solution to handset manufacturers, the Company generates revenues from the bulk trade and shipment of handsets through Chinarise Capital (International) Limited, the Company's operating subsidiary in Hong Kong .