Case Studies

 

Shanghai Harvest Network Technology Co. Ltd.

 

Case Study: Harvest Network Technology

Description:

Harvest Network Technology (“Harvest”) is a leading innovator, distributor and operator of mobile prepaid data and payment processing terminals in high-growth provinces in China. Alongside China Mobile, the largest mobile provider in China, and China UnionPay, China’s central bank card processor, Harvest offers mobile data top-up, bill payment, credit card payment, ticketing and other payment services through Harvest’s payment processing terminals. The company is expanding its offerings geographically into the Shandong region (population of 94 million) and plans to incorporate e-payment processing through its network of home point of sale terminals. 

Investment Thesis:

Harvest’s profitable operating history, partnerships with all major Chinese telecommunications companies (China Mobile, China Unicom and China Telecom), high profit margins and low capital investment allows for easy geographic and product expansion. According to the Ministry of Industry and Information Technology, China remains the largest mobile market in the world with over 1.2 billion users as of 2016, with prepaid subscribers accounting for 87% of the market. An established distribution network allows Harvest to expand and develop other prepaid products within the internet, gaming and mobile payment industries. DLB became the lead investor in Harvest to fund a strategic growth initiative, helping Harvest distribute new prepaid products and expand its business outside of Shanghai. 

DLB Role:

DLB provides management oversight with board roles, hiring privileges and approval rights over any compensation plans, major expenses, liquidations or mergers. We use existing relationships to refine the business strategy and marketing plan for new product development within the internet, gaming, supermarket and stored-value card industries. 

Current Status:

Harvest is looking to expand on its traditional prepaid mobile top-up services to other payment channels such as e-commerce, gaming and mobile payments.  Harvest currently operates in Shanghai and Shandong and is looking to expand into the Guangdong region. In addtion it has opened a sales channel to micro merchants through its FREEMYPAY business to provide   payment terminals in return for a participation in their sales.Current terminals in use as of 2015 was approximately 250,000

 

To learn more about Harvest, please visit www.harvestnetwork.net/cn

Case Studies

 

DLB uses its existing relationships in China to refine Harvest's business strategy and marketing plan for new product development and help the company grow to its full potential