AutoNavi is a leading provider of digital map content and navigation and location-based solutions in China. At the core of our business is a comprehensive nationwide digital map database that covers approximately 2.8 million kilometers of roadway and over 12.5 million points of interest across China. Through our nationwide digital map database and proprietary technology platform, we provide comprehensive, integrated navigation and location-based solutions optimized for the Chinese market and users, including digital map data and navigation solutions for in-dash navigation systems and PNDs, aerial photogrammetry solutions for government agencies and large state-owned enterprises, 3-D modeling applications, location-based public sector and enterprise solutions, nationwide digital map database for China Mobile, navigation solutions for mobile phones, and Internet-based map application solutions for over 6,500 websites in China.
Deloitte Touche Tohmatsu CPA Ltd., 8/F, Deloitte Tower, The Towers, Oriental Plaza, 1 East Chang An Avenue, Beijing 100738, the People's Republic of China.
AutoNavi is committed to the highest standards of corporate governance and our internal control system is an integral part of our assurance of transparency and quality in our internal processes. Since our initial public offering, AutoNavi has implemented a number of measures to ensure the quality of our internal control procedures.
These measures include the following:
Hired additional accounting personnel with strong analytical skills and extensive experience in U.S. GAAP and SEC reporting requirements;
Provided training on an ongoing basis to our accounting personnel covering a broad range of accounting and financial reporting topics to ensure that they are up-to-date with current and new regulations;
Engaged one of the major international accounting firms to serve as our external consultant on internal control matters to supplement our existing internal control team with Section 404 readiness services;
Expanded our internal control team by hiring two managers with a specialization in internal control and experience at major international accounting firms;
Established an audit committee consisting solely of independent directors and appointed Dr. Daqing Dave Qi, a professor of accounting and member of the American Accounting Association, as chair of our audit committee, leveraging his deep financial expertise.
Furthermore, underscoring our commitment to maintaining the quality of our internal control, we will continue to expand our team to strengthen our internal control structure and procedures for financial reporting over time.
AutoNavi currently has four independent directors on its seven-member board of directors. As a matter of policy and consistent with applicable laws, rules and regulations, the Board consists of a majority of independent directors. Each of our audit, compensation, and nominating and corporate governance committees, is entirely comprised of independent directors. More information can be found under the Board of Directors and Corporate Governance sections of our website.
We have two consolidated variable interest entities in China, namely, AutoNavi Software Co., Ltd. and Beijing MapABC Technology Co., Ltd. These two consolidated variable interest entities and their subsidiaries contribute a majority of our net revenues and net income for the year ended December 31, 2010. For a description of the contractual arrangements with these two entities, see our annual report on Form 20-F for the year ended December 31, 2010 under "Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions—Contractual Arrangements with Our PRC Variable Interest Entities and Their Shareholders."
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