Others

We also render a variety of other services, including (i) procurement of third-party hardware and software for some of our projects, (ii) system integration services, (iii)business consulting services, and (iv) corporate trainings.

Procurement of Third-party Hardware and Software

The systems deploying our software products typically also use a variety of third-party hardware (such as servers) and software (such as database and middleware software). These third-party hardware and software are primarily sourced by our customers, and in a few cases, by us. For projects that we are responsible for sourcing third-party hardware and software, we purchase these hardware and software from third-party suppliers in accordance with our customers’ requirements and specifications. We enter into supply agreements with third-party hardware and software suppliers against back-to-back orders from our customers. These supply agreements, typically with a contract term of one year, provide for the third-party hardware or software to be provided, the contract price and payment terms, among others. The third-party hardware and software suppliers generally grant us credit terms of 90-180 days.

Business Consulting Services

We provide comprehensive business consulting services. In the process of providing business consulting services, we are able to accurately assessing the customer’s medium- to long-term business trends, business challenges and specific business needs, which have allowed us to promote products and services that are best aligned with their growth strategies when appropriate. We have recently established a new business division dedicated to the provision of business consulting services.
We provide business consulting services pursuant to consulting service agreements we enter into with telecom operators and large enterprises, the term of which generally ranges from two months to one year. The contract price for our consulting service agreements is typically a fixed amount based on the estimated costs to provide the business consulting services, calculated at the day or hourly rates of the relevant business consulting personnel. We generally require a deposit upon signing the project development contracts, with the remaining contract price due upon completion of the project.

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