China is proving a lucrative market for electronic security company Electronic Control Security International (ECSI), which has just received a $5.152 million order to provide software and hardware for China's National Alarm Response (NAR) system.
Earlier this month, ESCI completed a backdoor listing on the Australian Stock Exchange, after raising more than $13 million from a share issue and convertible note to help speed the progress of the China contract. The deal is part of a 10-year exclusive contract to upgrade security for the NAR system, which is similar to Australia's 000 network, according to the company.
ECSI secured the deal through its wholly owned Chinese subsidiary, Electronics and Computing 21, which has an exclusive renewable contract with Beijing Jeton Yangtze Technology Company (Jeton) to supply and monitor the NAR system.
Originally owned by the state, Jeton was privatised by the former Director of the Ministry of Public Security, Lu Xiao Bing, who is now its major owner and CEO. Lu Xiao Bing also has an 8 per cent stake in ECSI.
The $5 million order is the first in the contract, and represents around 5 per cent of the hardware and software needed in the cities of Beijing, Dalian and Chengdu, said ECSI chief executive officer Graeme Green.
"This is the first of what will be a production line of regular hardware and software orders to get the system up and running across China," he said in a statement.
"We're pleased things are moving so quickly as there are healthy profit margins from the large volumes of hardware and software sales to set up the national security system, and then from ongoing fees from nationwide security monitoring."