ZST Digital Networks, Inc., a developer, manufacturer, and supplier of digital and optical network equipment to cable system operators in China, reportedly has entered into an agreement with Xing Yang Security Service Co., Ltd., a provider of personal, logistics and technology safety services, to provide GPS hardware installation and monthly call center service to Xing Yang Security.

In a release, ZST Digital officials said that the company, as part of the pact, will supply and install GPS tracking units in Xing Yang Security's armored trucks.

Xing Yang Security's trucks will have access to ZST's 24/7 call center which provides direction, information and emergency support for subscribers.

"We are pleased to announce our first major contract for our GPS device and services. Xing Yang Security is well suited to benefit from our wide-ranging GPS solutions,” said Zhong Bo, chairman and chief executive officer of ZST said, in the release. “With GPS tracking, mapping and emergency support functionality, our products are ideal for large commercial organizations in the security, shipping, logistics and transportation industries.”

Bo said the company believes the market for commercial and personal GPS devices and services in China remains largely untapped, representing a significant growth opportunity for ZST given the company’s integrated product and service offering, strong product development capabilities, and track-record of successful execution.

"Our GPS products and services represent a key growth engine for the company, and our agreement with Xing Yang Security highlights the quality of our product and service offering,” added John Chen, chief financial officer of ZST.

Chen said that by providing hardware and installation in conjunction with services, this agreement will have an immediate impact on revenues, with the potential for steady and recurring service fee revenue in the coming years.

“As we continue to market our GPS device and services solutions, we believe we have the potential to build a powerful platform for stable financial growth to complement our market leading position in the IPTV (News - Alert) set-top box market," he said.