Transcript Document
www.safetone.net
SafeTone Technology Ltd.
Coal Mine Safety and Communication Systems
New Regulations Created New Market
China state Administration of Coal mine Work Safety (ACMWS) announced its’ new regulations for 2006-2010. Regulations Document number is #216, issued on Feb 17, 2007 In the section about safety, It says: The coal production methods and the demand for increasing coal production will not change dramatically in next 5 years.
Goal for safety: Reduce 25% of death toll; Reduce by 10% the death toll in greater than 10 people/accident incidents.
Improve the safety technology: Build an underground safety network monitoring system: Tracking system Coal Mines must have have underground communication system
The Market Size for Tracking and Communication systems
Trend: Increase the safety level in coal mines worldwide.
Coal mine Management takes responsibilities:
mine GM will loose his position if more than 10 die in one accident
mine Group GM will loose his position if more than 30 die The provincial safety officer will loose his position if more than 100 die in one accident Investment for increasing the safety in underground coal mines is the top priority for state owned coal mines in China. In 2005, the top 54 coal mines should have $10 B investment for safety. Ref. Page 4/13, Doc 216. ACMWS.
Mandated safety fund is $1.1/ton for Tracking, Communication and Production monitoring system. China 2008 coal production was about 2.5B ton. The fund should be $2.8B. Conservatively, the total fund for tracking and communication together will be at least $1.4B/year.
Existing Safety Products and Technology Have Very Limited Capabilities Tracking:
– –
RFID, Gate system
»
No real time tracking information Networked RFID-Short distance, (10+ meters)
»
expensive, large power consumption, inaccurate and difficult to maintain Communication:
–
Fixed pole phone
»
separated by kilometers
–
PHS phone with Coaxial cable connected base stations.
»
Installation and cable are expensive and signal is poor quality.
» »
Narrow bandwidth (can only do voice) It can not be extended to any other applications such as video, digital data, tracking and gas monitoring.
In most coal mines when an accident occurs, the emergency information is only transmitted by a person running to the fixed phone pole and making a call to the surface.
Milestones
2005
From May to August, Wang led the team in on-site (underground) investigations in several mines of the Datong Coalmine Group (one of the largest coalmine production companies in China).
Analysis of the situation in the coalmines led to the conclusion that applications should focus on Gas Monitoring, Personnel Tracking, Wireless Communication and Wireless Mobile Video; From August to December, the team developed prototypes of devices for those applications and completed a demonstration in a coalmine. Feedback from the customer was extremely positive.
Suggestions were made by the Datong Coalmine Group that four mines will be selected for the first trial. Each mine will invest of RMB5 million. If successful, the system will be employed by all of its mines.
Milestones
2006 Yajun Wang starts MWnet
• focus on coalmine safety communications system business;
MWnet commenced software system development, including:
• mining wireless communications software system; • mining wireless tracking software system; • mining wireless gas monitoring system; • mining wireless video monitoring system;
MWnet commenced hardware R&D for various mine communications equipment, including:
• mining wireless base station; • mining wireless phone; • mining wireless tracker device; • mining wireless gas data relay device; • mining wireless video camera
;
Milestones
2007
March
• trial of the system was conducted at Xiaoyu Datong Underground Coalmine.
• base stations, trackers and explosion proof wireless phones were successfully tested ；
May
• MWnet system achieved top rating at MSHA;
September
• Application for China MA certificate.
Milestones
2008
First quarter
• provide samples for certification; mine wireless phone, wireless base station, tracking device and data transmission device ；
October
• Because MWnet cannot meet all of the requirements of China MA certification, Yajun Wang, joins with new partners, Xiaojia Ma and Wentao Ji, to start a new company,
SafeTone Technology Ltd.
• Xiaojia Ma and Wentao Ji bring manufacturing capability and hardware technology to the venture, which will allow
SafeTone
to fulfill the certification requirements.
December
• Wang and his new partners start the new company
SafeTone Technology LTD.
Major Achievements
SafeWIN safety & monitoring software system
Gas monitor system: GAS WIN (Mar 06) Call center system: COM WIN (Oct 07) Personnel tracking system: MPS WIN (Mar 06)
Copyright registration is achieved by Jan 2009 for all software above listed.
Hardware design and pre-production
EX base station: safeRAP, developed in Feb 2009; EX wireless phone: safePhone, developed by Feb 2009; EX tracker: safeTracker, under development; EX gas data transmission device: safeBridge, under development;
Software
Hardware
Current Situation
Moving Forward
Copyright and patent application will be completed under the name of SafeTone; MA certification will be applied for under the name of SafeTone; Preparation for marketing and sales;
Major Challenges
Lack of operation capital to carry out marketing and production work
Operation Goal
Finalise Intellectual Property ownership Be the leading SI company in the professional mining industry
Providing the industry with a wireless technology, integrated solution for mine safety, protection and production.
Press home first mover advantage and gain dominant market share in the blossoming underground wireless communications market.
Application of Funds
Amount: $10M For operational period of 18 months The funds will be used in the following area:
Loan payback: $1M Factory buildup: $3M Hardware R&D: $1M Sample production: $1M Marketing & sales: $2M Operation costs: $1M Cash reserve: $1M
Funding Requirements
ITEM
Loan payback: $1M Factory buildup: $3M Hardware R&D: $1M Sample production: $1M Marketing & sales: $2M Operation cost: $1M Cash reserve: $1M
TOTAL:10M 06-12/2009 01-06/2010
0.5M
1M 0.5M
0.5M
1M 0.5M
1M 0.5M
0.5M
0.5M
0.5M
4M 3M
01-06/2011
1M 1.5M
0.5M
3M
2009 Plan
Task Software Copyright requisition Hardware patent requisition safeCOM system samples production safeCOM system China mine Authentication Marketing Private Placement safeMPS system sample production safeGAS system sample production safeMPS & safeGAS China mine Authentication Factory scale-up Resource scale-up Marketing & Sales 1 Q1 2 3 4 Q2 5 6 7 Q3 8 9 10 Q4 11 12
Program Moving Forward
2009
Reorganize the company
Obtain system certification Trial system Installation:
•
Bofang coalmine, Lanhua Group, one of the large-scale coalmines in China
•
Wangzhuang coalmine, Luan Group, one the large-scale coalmines in China
standard Model buildup
•
4 coalmines at Datong Group
•
Datun China Coal Group, the 2nd largest coal production group in China 2010-2011
Promote to all domestic coalmines including
•
Other coalmines in Datong Group
Mass promotion domestically
•
All other coalmines in China Coal group
•
Other domestic coalmines and groups
SafeTone Current investment structure
Yajun, Wang &Wentao Ji 65% SafeTone LTD (CN/BeiJing) 100% SafeTone Factory (CN/ChongQing) Xiaojian, Ma &Zuo Wang 35%
SafeTone Current Operation structure
Board of Directors Yajun Wang/Xiaojia Ma Wentao Ji
、
wang Zuo
、
Guiping Wang CEO: Yajun Wang SafeTone (Beijing) Yajun Wang SafeTone (Chongqing) Xiaojia Ma Sales & Marketing: Java Wood Software Develop: Guiping Wang HR Accounting Network Engineering Base station:Wentao Ji Tracker& Bridge:Wentao Ji Wifi Phone:Wang Zuo
Financial Data:The stabilized Net Margin Should be Around 35% USD(1K) Sales and Service revenue COGS Product Margin Depreciation Gross Profit Operation Expenses Salaries, and Benefits Payroll Taxes & Benefits Employee Relations Payroll Service Fixed Assets Travel Rent Utilities Sales Promotions Commissions Meals & Entertainment Training & Seminars advertisement Admininstration Expenses Total Operating Expenses Operating Profit Income Tax Net profit/Loss Net profit:Income 2006 123.08
-123.08
93.73
26.61
0.00
6.67
23.92
5.92
14.40
0.11
0.00
0.00
1.44
0.00
6.59
179.38
-179.38
-179.38
2007 230.77
-230.77
134.95
37.57
1.50
6.67
26.49
16.65
24.34
0.19
4.34
0.00
1.93
2.34
7.45
264.40
-264.40
-264.40
2008 138.46
-138.46
218.57
54.64
2.03
14.60
4.15
1.84
39.42
0.56
2.06
0.00
1.01
0.00
4.14
34.30
-34.30
-34.30
2009 2,081.25
416.25
1,665.00
181.13
1,483.87
62.44
520.31
26.17
25.81
75.00
63.17
3,336.44
-1,255.19
655.16
79.96
51.91
494.28
905.67
69.61
143.00
163.96
-126.12
-6.06% 2010 12,936.72
2,587.34
10,349.38
455.70
9,893.68
1,145.79
135.14
100.40
688.10
1,372.83
122.81
276.00
288.93
388.10
3,234.18
44.11
70.60
100.00
108.31
8,075.30
4,861.41
4,859.81
37.57% 2011 23,023.44
4,604.69
18,418.75
655.52
17,763.23
1,487.14
175.39
148.71
760.47
999.11
159.40
332.00
375.01
690.70
5,755.86
57.25
91.64
112.00
140.58
11,285.26
11,738.18
2,465.02
9,271.12
40.27% 2012 32,631.25
6,526.25
26,105.00
771.81
25,333.19
1,807.63
213.19
180.76
652.63
581.47
193.75
360.00
455.83
978.94
8,157.81
69.58
111.39
120.00
170.88
14,053.85
18,577.40
3,901.25
14,673.82
44.97%
Management
Yajun Wang, Founder and CEO, SafeTone
2006
－
2008
：
MWnet’s founder & CEO.
He has more than 15 years solid management and technology leadership and a track record of success.
2000-2008:
Built his own software company with total over USD$10M revenue Software became the top SW vendor choice of the largest private bank in China
1992-2000: CEP Hexun Communications, a subsidiary of China Telecom.
He developed the hardware and software for safeock trading through mobile phone system. Achieved sales of $60M annually and awarded VC funding for $50M.
Has strong relationship with Datong coal mines given his family background.
Has broad network in China telecommunication and software industry.
BE and MS in EE & ME from Chengdu Communication University.
Management
Xiaojian Ma, Founder & President, SafeTone
1998-2008: VP of Bird Inc., Chairman of Bird Chongqing Corp.
Responsible for manufacturing and group customer sales. Hands on experience in sales and marketing at China’s wireless product market, close relationship with China Mobile;
1987-1998: General Manager of Product Development at China NASA, Chongqing Branch
focus on communications product development;
BE and MS in EE & ME from Chengdu Communication University.
Management Wentao Ji
Founder & Vice President, SafeTone
2007-current, Chairman of Shenzhen Zheyang Technology • focus on wireless product development; 2006-2007, VP of MWnet • responsible for hardware R&D management; Master of EE, Cornell Univ., • engineering expert • Previously worked at Titan Wireless (US), ChinaSat and Shenzhen Kingsky Inc.
Management Zuo Wang,
Founder & Vice President, SafeTone
2006-Current, CEO and founder of Shenzhen Celltel Ltd.
• focus on cell phone development and production; 1998-2005, VP of Bird Chongqing • responsible for cell phone production; 1987-1997, Deputy General Manager Product Development at China NASA Chongqing Branch; BS EE degree, Beijing Insafeitute of Technology;
SafeTone> Core Team
AP & Zigbee design team: Lead by Yaming XU, master of ME, Shanghai Communications Univ.
wireless expert, previously worked at Shenzhen Kingsky Inc.
WiFi Phone design team: Led by Yang Bing 15 engineers spun off from Bird Wireless Chongqing and now merged with SafeTone.
They own the fundamental layer of the code with WiFi chip. This team can customize WiFi phone application with special features.
Software team: Lead by Guiping Wang, assited Yajun Wang for 5 years on software development.
Sales team: Lead by Java Wu, Sales Manager with successful sales experience on IPTV, a similar system which focuses on insafeitution customers.
SafeTone new structure of ownership
investors(can) 40%
Yajun
Wang &Wentao Ji 39% Xiaojian MA &Zuo Wang 21% SafeTone International Inc.
100% WFOE(cn) 100% SafeTone(cn/Beijing) 100% SafeTone(cn/ChongQing)
SafeTone New structure
VP production Zuo Wang VP hardware Wentao Ji Board 5 members CEO/President Yajun Wang /Xiaojian MA VP software Guiping Wang Adsafen Director Lang Yuru Marketing Director Java Wu material safePhone Server & PC Accounting
Marker
HR production testing administration AP Team Tracker Team Gas Team PDA safePhone system integration
Sales AD
Appendix: SafeTone Product & Service>
Brief(1)
Roadmap of product and solutions Safe WIN-the software platform PC version PDA version safePhone version mine LAN-the network platform Wired network Wifi wireless network Zigbee wireless network Safe COM-the wireless communication system Safe GAS-the gas monitoring system Safe MPS-the tracking system
Appendix: SafeTone Product & Service>
Brief(2) SafeTone Solution Safe GAS Safe MPS Safe COM SafeWIN (software) PC & PDA Gas Monitor PC & PDA MPS Monitor Mobil & Phone Call Center
SafeTone Terminal Backbone network(FDDI/RJ45/Wireless) safeRAP safeSENSOR safeTRACKER safePHONE
Appendix: SafeTone Product & Service>
Brief(3) safeWIN 6.
safeRAP
7.
safeVIEW safeCOM safeMPS
safeRAP
safeGAS safeCOM safeGAS safeMPS safeMPS
Appendix: SafeTone Product & Service>
SafeWIN
Safety monitoring software platform For: mines, oil refineries, municipalities Functions: Phone GasMonitor Personnel Tracking Video Monitor Alarm Process Features: Supports PC, PDA and EX wireless phones GIS and database selectable
Appendix: SafeTone Product & Service>
SafeLAN(1)
Ethernet for mining industry explosive or hazardous environment Including Backbone: fiber-optic Ethernet: wireless Access: Ethernet, Wifi and ZigBee Applications: Wireless phone calls, personnel tracking, gas monitoring and video transmission
Appendix: SafeTone Product & Service>
SafeLAN(2)
Tracker safeMPS Phone safeCOM Dual Sensor gas monitor iTrans 4 sensor portable gas monitor safeGAS Single sensor gas Monitor safeGAS Wireless Cam SafeLAN platform can have all these devices link up to the surface monitor and control center at the same time.
Appendix: SafeTone Product & Service>
SafeCOM
Total solution for industrial & mining Wireless Communications
Including:
Device: safePhone Network: SafeLAN Software: SafeWIN
Functions:
Voip SMS Push-to-talk Alarm Broadcast Tracking Management
Appendix: SafeTone Product & Service>
SafeGAS
Total solution for industrial & mining Gas Monitoring Including: Terminals: iTrans/zBridge, GBEX/zBridge, MX4/zBridge Network: SafeLAN Software: SafeWIN Gas Functions: Fixed position gas monitoring Portable gas monitoring
Appendix: SafeTone Product & Service>
SafeMPS
Total solution for industrial & mining Tracking Including: Terminal: safeMPS Network: SafeLAN Software: SafeWIN MPS Functions: Personnel tracking Attendance management SOS Alarm process