Key Data

Date of report: 8^th June 2000

Stock code: 616

52 week H/L: $20.95/0.245

Current price: $2.225

No. of issued shares: 960m

Market capital: 2.4b

Rating: Outperform

A focused vision with dedication

The Group has committed itself to become one of the pioneers in internet business in the Asia Pacific region and has already formed a strong alliance with renowned venture capital H&Q Asia Pacific and Whitney & Co. The management has been actively pursuing quality acquisition opportunities in order to strengthen the asset base of the Group and enhance shareholder equity.

Corporate strategy

The Groupˇ¦s uniqueness lies in its corporate strategy that distinguishes itself from traditional venture capitalists. The management strongly believes that its strategy would make them outperform.

1) As a venture capital fund possesses abundant financial resources

2) Embarking on acquiring start up IT companies and taking controlling share.

3) As an idea laboratory to incubate infant IT companies

4) Participating in the operation of acquired companies through its own experts and thus invests significantly in human resources.

The Groupˇ¦s team is very versatile yet highly professional, which included experienced people from the spheres of computer software and hardware, IT technology, e-commerce and media development, legal, finance, as well as mergers and acquisitions.

Operating direction

1) Connection and utilization of wireless internet and wap

2) Development of broadband Internet

3) Financial online services

4) Provision of media content and substances

5) E-commerce

Development and prospects

The launch of ask100.com has proved to be a remarkable success as its valuation surged 10 to 20 times by US funds. Furthermore, The Group has recently acquired 49% of AsiaWebASP to tap on the hi-tech publishing market in China. The acquired company has market share of 40%, 85% and 100% in Taiwan, Hong Kong and Singaporeˇ¦s electronic publication market respectively.

Moreover, in conjunction with the China State Farms Agribusiness (Group) Corporation of China, an electronic B to B trading centre, foodEtrade.com is set up to launch online trading of agricultural related goods. The Web is currently no competitor in the market place.

It is anticipated that the above ventures shall contribute positive results to the Group in relatively short period of time. In addition, the Group has signed up alliances with some European enterprises, e.g. Windhorst and VMR to continually look for investment opportunities in hi tech arena and several projects are pending of announcement. The Group currently has 200 million cash in hand to continuously look for opportunities of expansion.

Competitive advantages

1) Since the Group has the expertise in assessing potential investing projects, thus reduce significantly its investment cost.

2) The Group well understands its acquired businesses and thus in good position to have operational control.

3) The group has the capabilities to guild the growth path of the newly acquired business and thus has higher chances of success.

4) Better structure plan for new business and hence greater chances for spin-off and IPOs.

Risk factors

1) The Group has to invest a significant amount in human resources in advance yet might not be worth of its while.

2) Its current businesses are still in developing stage and future earning stream is of postulations only.

3) High-tech ventures are high-risk investments and percentage of failure should never be underestimated.