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The Chinese security industry
is the largest undeveloped security market in the world, at a growth stage similar to the North American security industry of 20 years ago. Now in our 5th year of operational experience in China, Tranzcom has successfully applied the proven, North American business models to this huge untapped market creating exceptional value for our shareholders.
  • China has over 1.3 billion people and is an economic dynamo for global economic growth. China has been the fastest growing economy for the past two decades. It has become the most attractive destination for foreign direct investment in the world;
  • In order to sustain such growth in the long run, the Chinese government is facing the great challenge to build a "harmonious" social environment for its citizens and businesses. That is creating a tremendous opportunity for the security and protection industry in China;
  • The economic prosperity has created an affluent and growing middle class, while a large number of successful businesses have emerged. At the same time, the widening gap between rich and poor produced a sharp rise in crimes. Private citizens and businesses are demanding a higher-level of security and protection for their homes and enterprises;
  • 2008 Summer Olympic Games in Beijing and global terrorism threat will boost both new short-term demand and sustained long-term demand for security and personal protection in China;
  • The young Chinese security market is full of opportunity and growing rapidly; from only 8 billion RMB in 1997 to 57 billion RMB in 2003. It is estimated that the Chinese security market will reach 300 billion RMB in 2020, as business and consumer's security needs and awareness increase;
  • The security protection industry is one of the fastest growing industries in China. The national growth rate for the industry is above 20% in recent years; yet the industry is still underdeveloped, as the majority portion of its revenue is still derived from sales of hardware and from non-residential sectors, compared to  the North American Industry where most of the revenue is from monitoring fees and from residential customers.