NetLinkz Ltd (ASX:NET) has achieved sales of more than 5,000 VINs (virtual invisible network) in China over the first quarter of the calendar year.
The VIN software is sold as part of a China Telecom Bundle which ranks in the top 5 products for China Telecom nationally.
This accords with the Chinese Government’s requirement for Chinese companies to transition to cloud base solutions by providing secure access pathways.
Under its reseller agreement with China Netlinkz, Netlinkz receives a licensing fee monthly for each VIN sold.
Netlinkz has earned 150,000 RMB (about $31,000) for the quarter, which translates to at least 600,000 RMB on an annualised basis.
Current sales have intentionally been restricted to one city to refine the sales cycle and deployment of the VIN.
Expanding into larger cities in China
NetLinkz is planning to expand into other larger cities in the Jiangsu Province which has a current population approaching 100 million.
Netlinkz chairman James Tsiolis said: “This is watershed moment for the company.
“First revenue in China confirms the strength of our co-operative relationship with China Telecom.
“I look forward to continued expansion beyond the Jiangsu Province into the rest of China.’’