Reportedly, Orchid Asia staked in Shenxinfu Science and Technology Co., Ltd. (Shenxinfu for short) for RMB55 million at the end of last year. Recently the two sides have revealed the transaction to the public for the first time. This is also the first found funding for Shenxinfu.
Zhaoxi He, Chairman of the Board of Shenxinfu, indicates that in the network equipment market full of fierce competition, small enterprises' competition strategy is to seize opportunities in segmented markets. Meanwhile, Shenxinfu has been expanding its product line in the segmented markets. Currently it has formed four product lines: IPSECVPN, SSLVPN, Internet behavior management, and net acceleration products. Its products jointly provide overall solution for users to connect to the Internet.
Ning Cong, Vice-president of Orchid Asia Investment Group, considers that Shenxinfu promises huge potentials in areas of Internet and connections of the Internet, with the reference from the U.S. market.
This investment proceeds will be used for R&D, sales network extension and overseas market expansion.