HKU153

11/09/01

enterpriseAsia.com: Investing in High-technology Businesses

in Asia Pacific
On 31 August, 2000, Mr Benjamin Ng, CEO of enterpriseAsia.com plc (EA), a UK company
with an HKSAR-based business involved mainly in investing in Asia Pacifics Internet and
IT-related businesses, was preparing a report to his companys shareholders that was due to
be published, together with the first interim results of EA, no later than 31 October, 2000. On
the same day, a local Internet portal operator, Tom.com, which was more than 600 times
oversubscribed when it issued its IPO in March 2000, announced it was cutting 50 jobs (83
per cent of its total workforce in the HKSAR office) on its China travel Website
GoChinaGo.com. 1 It was the second job cut announcement from the same company group
within a month. Several negative news reports had been making headlines in the region,
suggesting a bubble-bursting phenomenon in the Internet market. With all those tales of woe
from the IT industry, Benjamin was concerned these could be off-putting for the EAs
shareholders and clients. One of his major concerns was how he could convince the
shareholders and clients to keep faith with Asia Pacifics Internet and other IT developments.
Another concern involved how EA should look at the market, as this could impact on the
Companys investment strategy. For the investments to be successful, EA required a project
evaluation and selection process that would enable them to pick the right start-up
businesses.
EAs challenge was three-pronged: managing the investment portfolio so that it could sustain
the market downturn and eventually enhance shareholder value; evaluating business plans and
identifying entrepreneurial spirit and innovation in project owners; and dealing with the
changing market conditions in Asia.
The High-technology Industry in Asia Pacific
Since 1996, the high-technology industry in Asia Pacific had revolved mostly around the
Internet. The buzzword dotcom became a household word when companies started using
the Internet for more than just e-mail communication and static advertisement billboards.2
Companies began to focus on becoming an Amazon.com, eBay.com or Yahoo.com. As more
1
Chan, R. (2000), iTravel Further Expands in the China Travel Market, Tom.com Limited Press Release,
http://www.us.tom.com/ about/20000831.htm, 31 August.
2
Dotcom is a term given to businesses that operate based on the Internet and related technologies.

Marissa McCauley prepared this case in conjunction with Eva Chang under the supervision of Dr. Simpson P.H.
Poon for class discussion. This case is not intended to show effective or ineffective handling of decision or
business processes.
This case is part of a project funded by a teaching development grant from the University Grants Committee
(UGC) of Hong Kong.
Copyright 2001 The University of Hong Kong. No part of this publication may be reproduced or transmitted in
any form or by any means - electronic, mechanical, photocopying, recording, or otherwise (including the Internet)
- without the permission of The University of Hong Kong.
Ref. 01/101C

9 November, 2001
1

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

people connected to the Internet, the idea of selling and buying goods electronically became
more attractive. Several factors encouraged the growth of the e-commerce and e-business,
including improvements in telecommunication infrastructures, localisation of development
tools and contents, customer demand, foreign investments and global competitions, and
support from local governments (see Exhibit 1).
The successes of China.com and Singapores Pacific Internet in being listed on the NASDAQ
in 1999 gave hopes to many Internet companies in the region. 3 Even though the Net stocks on
the US market had some significant corrections around June 1999, the enthusiasm remained
in Asia Pacific, especially in markets with big technology-related companies, such as Seoul
and Taipei, and those vying to be high-tech hubs for Asia, such as the Hong Kong Special
Administrative Region (HKSAR) and Singapore. On Christmas Eve of 1999, stock records in
HKSAR, Tokyo, Singapore and Taiwan all closed high, with technology sectors in the lead. 4
IPO listings on the HKSARs Growth Enterprise Market (GEM), launched in November
1999, had been hundreds of times oversubscribed. Up to 18 August, 2000, the GEM had
helped 45 emerging growth businesses to raise capital totalling over US$2 billion, and 71 per
cent of these companies were in Internet, software or telecommunication-related businesses.
Nevertheless, the aftershock of the tech-stock tremor in the US, which began in April 2000,
was felt subsequently in the Asia Pacific region, with big Internet players share prices
plunging sharply between 21 February, 2000 and 17 April, 2000. 5 Over that period, Japanbased Softbanks share price fell 66 per cent; China.coms share price fell 74 per cent and
HKSAR based Pacific Century CyberWorks share price fell 43 per cent.6 The mood was
worsened by the overflowing negative news report about the Internet-related companies in the
region throughout the summer. Catcha.com, one of Southeast Asias leading portals,
announced on 26 May, 2000 that it had delayed its IPO due to extreme market volatility and
worsening market sentiment, and on 10 July, 2000, it declared a 15 per cent staff cut and cuts
in management salaries.7 Tom.com cut 80 jobs (16 per cent of its workforce) on 31 July,
2000, and a month later its subsidiary GoChinaGo.com cut 83 per cent of its staff in its
HKSAR office. Hongkong.com, 36.com, Starteastnet.com and Tom.com considered the
stars among the HKSAR dotcoms all reported heavy operating losses, ranging from
HK$14 million to over HK$193 million in August 2000. 8 Chinese Books Cyberstore (CBC),
once touted as the HKSARs Amazon.com, went into voluntary liquidation in the first week
of August 2000 after two of its 15 shareholders rejected a HK$27.5 million re-capitalisation
proposal. 9 Analysts reported that even non-dotcom high-technology companies with
profitable track records were affected.
However, not all the investors were abandoning the high-technology sector. Some of them
believed that the significant Internet growth in most Asian markets indicated there were still
opportunities around, they just needed to look more particularly at the business plan behind an
idea; the investee companies management teams and cash position would be important
factors (see Exhibit 2). Analysts anticipated that the Internet industry would continue to
consolidate and they advised investors to select companies with traction, strong market
3

Seawright, S. (1999), HK Net stock trades in US, South China Morning Post, 14 July. See also Rahul, J. (1999), China.com
income up 174%, Financial Times, London, 23 August, and Woods, B., (1999) Pacific Internets IPO Heads Skyward,
Newsbytes, 5 February.
4
High-Tech stocks lure investors to Asian markets, The Wall Street Journal, Brussels, 27 December, 1999.
5
The Nasdaq Composite dropped over 30 per cent from its record high on 10 March, 2000.
6
Softbank, Inc. (Tokyo Stock Exchange: 9984) was one of the worlds Internet leaders, owning more than 300 Internet
companies worldwide. See Erickson, J. (2000), Fire in the valley, Asiaweek, 28 April, and Creed, A., (2000) Southeast Asia
portal network lays off employees, Newsbytes, 10 July.
7
Creed, A. (2000), Southeast Asia portal network lays off employees, Newsbytes, 10 July.
8
Hui, Y. M. (2000), News portal swept up in dotcom red-ink tide, South China Morning Post, 12 August.
9
Ling, C. (2000), Bookstore is latest dotcom failure: Inability to raise funds forces Chinese Books Cyberstore into liquidation,
Asian Wall Street Journal, 3 August. See also Szeto, W. (2000), New chapter for book cyberstore, South China Morning Post,
8 August.
2

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

positions, large market opportunities, financial and operating leverage and a clear path to
profitability (P2P).10 Investors began to move away from pure dotcom to technology
companies, which might deploy the Internet as a medium, offering niche products and
services that could empower people. Others focused their interests in telecommunications
software.
The Venture Capital Industry in Asia Pacific
Investors had been actively involved in building the new economy in the region ever since
Asia Pacific caught the Internet fever around 1996.
Hong Kong

HKSAR was the largest venture capital (VC) centre in Asia, excluding Japan. At the end of
1998, there were approximately 494 VC professionals managing a total venture capital pool
(total of funds under management) of over US$14.5 billion. 11 (See Exhibit 3 for the
disbursements of some of the US$5.8 billion investment portfolios to the various hightechnology industries and by the different financing stages).12 In 1999, the Government
reported that over US$17 billion venture capital was managed through the HKSAR.13 In the
frequent exit strategies for Hong Kongs venture-backed companies were public offerings and
trade sales. Indeed, the launch of the second board, GEM, by the Hong Kong Stock Exchange
(HKSE) provided an alternative fund-raising channel for growth enterprises.
Mainland China

Across the border, Mainland Chinas total VC pool for the year ending 1998 was around
US$3.1 billion. 14 (See Exhibit 4 for the disbursements of some of the US$2.99 billion
investment portfolios to the various high-technology industries and by the different financing
stages.) A factor that hindered the growth of the VC industry in Mainland China was the
difficulty in exiting, despite several companies succeeding in listing their shares on the HKSE
board and the National Association of Securities Dealers Automated Quotation (NASDAQ)
stock market in the United States. The situation might change after the planned merger of the
existing Shanghai and Shenzhen stock markets, in which Shanghai would become the primary
Exchange whilst Shenzhen would be redesigned as a second board. This second board was
scheduled for operation in November 2000, focusing on high-growth and high-technology
stocks.
Taiwan

In Taiwan, the electronics, computer-related and information technology industries received

the largest amounts of disbursements, accounting for 67.5 per cent of the total investment
portfolio of NT$66.2 billion (US$1.98 billion) at the end of 1998. 15 Most of the Taiwanese
venture-backed companies listed on the Taiwan Stock Exchange (TSE), over-the-counter
(OTC) and NASDAQ markets were engaged in high-technology businesses. Analysts
believed that its VC industry had helped Taiwan to become the worlds third-most important
high-tech centre after the United States and Japan. However, from 2000 onwards, some
Taiwanese were considered likely to venture overseas due to the cancellation of an investment
tax credit that they had enjoyed for the previous 17 years. A portion of these overseas
10
Gupta, R., Barnert, R., Chang, Y., Murray, C., Tewari, A., Tan, S., Han, S.H. (2000), Diamonds in the rough, Goldman
Sachs Global Equity Research, Technology: Internet, Asia Pacific, 15 September.
11
The 2000 Guide to Venture Capital in Asia (Eleventh) Edition, Asian Venture Capital Journal (AVCJ), October 1999.
12
Investment portfolio is the cumulative total of existing investments less any divestments (exits through public listings or trade
sales, not including disbursements to limited partners) made.
13
HK plays significant role in high-tech development of mainland region, HKSAR Government Press Release, Information
Technology & Broadcasting Bureau, 21 August, 2000.
14
AVCJ, October 1999.
15
US$1 = NT$33.41

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

investments was made in Mainland China. Despite the political problems, Taiwan venture
capitalists envisaged Mainland China as a great opportunity for them, due to the high-tech and
Chinese-language capabilities and the close business relationships between the business
communities of Taiwan and Mainland China.
Other Countries in the Region

In other Asia Pacific countries, investing in high-technology industries, in particular Internetrelated companies, also became popular (see Exhibit 5). In Japan, Japans Securities Dealers
Automatic Quotation System (JASDAQ) launched a second section on the OTC market, the
Frontier Market, in June 1995 to facilitate public listings for technology companies and to
encourage venture capitalists to invest in early-stage businesses. This was followed by the
new stock markets opening in Tokyo, the Market of the High-Growth and Emerging Stocks,
in December 1999 and the NASDAQ-Japan opening in Osaka Stock Exchange in June 2000.
Both provided venture capitalists with a potential exit strategy of an early IPO, which was
previously unavailable in Japan.
Analysts anticipated that South Korea would become one of Asias most wired nations, with
more than half its population using the Internet at least once a week by 2004. 16 Despite the
huge potential in the growth of high-technology industries, Korean VC firms had been extra
cautious about investing since 1998. They shifted their investment focus from start-up
ventures to expansion-stage companies as many small and medium enterprises (SMEs) were
bankrupted by the continued restructuring in the domestic economy. Nevertheless,
investment continued to centre on manufacturing and high-technology-related industries.
Singapores VC pool was the third-largest in Asia, following the HKSAR and Japan, with
S$9.4 billion (US$5.63 billion) as at June 1999. 17, 18 Its government played a significant role
in promoting the growth of the local VC industry, with the establishment of funds, the
introduction of various fiscal incentives and investments in technology-intensive projects. In
1998, close to 50 per cent of the VC funds were invested in computer products/services,
information technology, electronics and telecommunications.
In total, some VCs predicted that more foreign VCs would set up shop in Asia from the end of
2000 to the beginning of 2001. As Derek Kwik (assistant vice president of the Hong Kong
venture firm, AsiaTech Ventures) said, there were still a lot of cash in the US from
companies and individuals that received windfalls of cash before the recent correction looking
for investment opportunities. With the US market more mature, VCs will look for areas
where opportunities are greater. One of those is Asia.19
enterpriseAsia.com
Although listed on the London Stock Exchange, enterpriseAsia.com plc operated through
enterpriseAsia.com Ltd., its main subsidiary, which was an HKSAR-based venture capital
company investing mainly in start-up and early-stage Internet-related and information
technology (IT) companies that arise from Asia, in particular the Far East. EA focused its
investment opportunities on the growth potential offered by new businesses rather than on the
track record of existing businesses. For each project, EA aimed to realise the investment at
the appropriate time, either through a trade sale or floatation. The Company did not take up a
controlling interest in any of the projects, but had representatives sitting on the board of the
investee in each case. If EA had identified suitable opportunities, it was allowed to change its
16
Booth, J. (2000), Asian Economic Survey (A Special Report): Digital Divide Which parts of Asia get wired fastest will do a
lot to determine which countries are most competitive in the New Economy, Asian Wall Street Journal, New York, 23 October.
17
US$1 = S$1.67
18
AVCJ, October 1999.
19
Lam, S. (2000), Interview with a venture capitalist, internet.com Corp , May.

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

investment criteria without the prior approval of shareholders. EA would typically invest no
more than 10 per cent of its gross assets in any one investment.
EA was incorporated on 11 January, 2000, and was floated on the Alternative Investment
Market of the London Stock Exchange on 22 February, 2000. About 239,600,000 new shares
were issued at 5p each, with total net cash proceeds, after floatation expenses, of about
11,600,000 for investment and working capital. EA was listed in London because the
Company was formed in an environment where investors in the UK were interested in
investing in IT and Internet-related projects emanating in Asia. EA was operated and based in
Hong Kong as it provided proximity to its target markets and was within a stable legal and
financial environment. The focus on the Greater China markets was also due to the EA
directors experience and business connections in the region.
The Investment Portfolio

In an eight-month period, following the Companys successful floatation on the AIM of the
London Stock Exchange in February 2000, it had invested in eight projects, accounting for
approximately 65.66 per cent of the GBP11,600,000 (US$18,316,400) capital raised by the
floatation. 20 EA focused mainly on the Greater China markets and therefore the projects
selected consisted of businesses from that region.
Among the eight projects, EA held 50 per cent equity in two technology companies based in
Hong Kong that were developing components and software systems for on-line stock trading.
EA also held a 49 per cent equity in an e-commerce solutions provider focusing on companies
in the Greater China market, and in an on-line recruitment advertising media company in Asia
Pacific region. EA did not have more than a 50 per cent equity in any of the projects, as it did
not want to control the projects. EA believed the project owners should get a bigger share of
the reward and that they therefore had to adequately work out and be responsible for the
success of the project. EA however provided their expertise to all project owners through
regular meetings.
In terms of project location, one was managed from Mainland China while the rest were Hong
Kong-based. The operations of each one of these projects were planned to cover different
geographical areas according to its respective business nature, and would normally include
Mainland China as one of the main markets, but EA only invested directly in either Hong
Kong-incorporated vehicles or companies that were incorporated under an acceptable offshore
jurisdiction, because Hong Kong had a more stable legal framework and financial market than
the Mainland, while offshore incorporation offered legal stability and administrative
flexibility. EA, however, did not preclude investment in projects emanating from Europe or
elsewhere. (Refer to Exhibit 6 for a detailed description of the business ventures of EA and
the corresponding per cent equity.)
Directors of EA

Peter So:
Benjamin Ng:
Phillip Brown:
Siu Fai Ng:

Non-Executive Chairman
Chief Executive Officer
Corporate Relations Director
Non-Executive Director

All four directors had considerable experience in identifying, evaluating and investing in
start-ups and early-stage businesses. (See Exhibit 7 for biographies of the directors.) Peter,
Siu Fai and Phillip were directors of StartIT, a company that invested in the same target
market in the UK. Additionally, Peter, Benjamin and Siu Fai each had experience in
investing in Asia and the Far East. Peter was an experienced banker and broker, and his role
20

GBP1=US$1.579
5

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

as EAs non-executive chairman and director was to bring in the contacts and project
opportunities as well as to advise the executive team in their process of making judgements
about the investments. Siu Fai had a similar advisory role, backed by his extensive
experiences in managing China investments. Benjamin, EAs CEO, who had a background in
marketing and finance, was responsible for the overall management and operations of EA in
the UK and in Hong Kong, from corporate administration to investment management. Phillip
worked closely with Benjamin in all areas, in particular as EAs resident representative in the
UK and in areas related to shareholder relations and regulatory issues.
EAs directors were supported by two senior officers in Hong Kong. Sydney Lo, Commercial
Director, had a background in marketing, retail and media, and was responsible for the
evaluation and management of the commercial aspects of EAs projects. Hans Kristiansen, a
Norwegian national, was the Technology Director. Hans had a strong IT background, and
apart from managing the IT aspects of EAs projects his contribution to EA, according to
Benjamin, was his Western culture and management discipline, which was complementary to
the all-Chinese teams in EAs HKSAR operations as well as at the project levels.
EA Project Evaluation and Selection Process
In evaluating the suitability of potential investments, EA applied the following criteria:
1. Relevant intellectual property should be owned by the investee company.
2. The scale of the potential market must be such as to enable appropriate investment
returns to be obtained.
3. The growth potential within a given market for the product/technology must be
sufficient to enable the Company to achieve target returns.
4. The ability to deliver a product/technology to the market at a commercial price must
be apparent.
5. The timescale required for the development of the product/technology should be short
enough to reduce competitive threats.
6. The cost of market entry must be realistic in the context of the investment.
7. The experience of the management team must be appropriate.
8. The development plan for the business must be suitable.
9. The financial projections (and the underlying assumptions) for the business must be
reasonable.
10. The funding requirement for the business must be within the investment guidelines of
the Company.
11. The proposed exit strategy for investors must be acceptable.
Asked if there was an order of preference to the criteria listed above, Benjamin said there was
none, but mentioned two important things they looked for in a plan:
First, would there be a market or a sizeable amount of people, target users or
buyers who are willing to pay a reasonable price to buy that product or
service? Second, is using my classic formula of profit = revenue cost. All
the other criteria would be a spin-off from these two basic aspects.
In addition to the evaluation criteria listed above, an important factor in evaluating a project
was the entrepreneurship and innovation element present in the project and in the project
owners. J.B. Say, a French economist, defined the entrepreneur as somebody who shifts
economic resources out of an area of lower productivity and into an area of higher
productivity and greater yield.21 Peter Drucker mentioned that entrepreneurs view change as
21
Drucker, P. F. (1985), Innovation and Entrepreneurship, Harper and Row Publishers: New York, p. 21 in Yarzebinski, J. A.
(1992). Understanding and Encouraging the Entrepreneur, Economic Development Review (Vol.10: Iss.1), Winter, p. 32.

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

the norm and as healthy, but usually they do not bring about the change themselves; however,
the entrepreneur constantly searches for change, responds to it and exploits it as an
opportunity. One of the traits of entrepreneurs is they are pragmatists, dealing with the world
as it exists not as they would have it. They are calculated risk takers, not gamblers; risks are
taken where the entrepreneur can establish a high probability of achieving a set goal. Joan
Magretta, a contributing editor at the Harvard Business Review, commented: Conventional
wisdom says that most entrepreneurs are good at starting companies but not good at managing
them.22 Entrepreneurs are classified into two basic styles: (1) the peripatetic deal junkie,
restlessly seeking new ventures and markets, and (2) the methodical optimiser, who starts
with a good idea and then tirelessly executes that idea.
EA received project proposals daily and according to Benjamin, some of them were dismissed
on the spot. Benjamin commented, Some did not really make any sense. The proposals
received varied from a short phone conversation to a detailed business plan proposal of up to
200 pages. In evaluating the projects, EA considered factors such as the market, the sector
and the current investment portfolio (for diversification purposes). Once a project satisfied
some of the criteria, EA would meet with the project owner to discuss the project further.
We would talk to them like a hundred times probably; if we get answers from them, we
challenged them until we are satisfied with the answers, Benjamin explained. It was an
interactive process of exchanging ideas between EA and the project owners.
The EA teams main approach in evaluating projects was to look at the commercial and
technology side of the proposal. That was why EA had two very distinct streams of
management commercial and technological. The Commercial Directors job was to look at
the commercial aspects of the investment, to assess whether it would make any sense as a
business. Benjamin reasoned that this role was important in project evaluation. In
1998/1999, there were a number of people in the IT industry who were blinded by the
heatwave in the Internet world. They believed that with a great idea and some seed capital,
they could easily float the company and become instant billionaires. In 2000, there were still
those who approached EA with an idea that they thought would work. Benjamin said, They
would come to EA with an idea and would ask us when we could provide the seed money.
However, we would invest into a project only for one reason: we expect to get some profits
after some time. How the profit would come in, we do not know and the project owner will
need to show and prove to us. We look at a very basic formula, profit = revenue cost.
The projects were also evaluated based on the special contribution or element in the
technology proposed and the cost implication involved in building the technology. This task
was performed by the Technology Director. Some of the projects EA received involved basic
technology that an average programmer or a systems team could work out, while others
involved more complex technology. Benjamin said that the financial model of a project had
to be realistic to be considered for evaluation, regardless of how simple or complex the
technology was. For projects that featured advanced or unique technology, the Technical
Director had to conduct a thorough evaluation to determine the value of the technology, and
to assess whether there was a need to protect it from competition or piracy. The constant
developments in technology, however, meant that EA had to be up-to-date with those changes
to be able to conduct a thorough project evaluation. In one of the projects, EA went through a
series of consultations not only with engineers and technology experts but also with lawyers
to help out in the technology evaluation. EA had plans to expand the committee to a larger
group including other experts such as investment specialists.
The process of project evaluation involved the team consisting of Benjamin and the
commercial and technology directors. This team was responsible for the information
22

See Smith, E. (1999)., Michael Dell, Texas Monthly (Vol.27: Iss.12), December, p. 158.
7

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

collection and preparation of a detailed report and the corresponding investment

recommendation. The Investment Committee, which consisted of all the EA Directors, would
review the recommendation and would make the final decision. All decisions made were
based on a majority vote, but EA preferred to implement a project with unanimous approval.
A nay vote meant the project had to be reviewed again, which involved more discussions with
the project owners. It would take about four to six months for EA to decide on a project.
Asked whether EA would reconsider proposals that had been turned down once, Benjamin
said it all depended on how well the revised proposal met EAs expectations. There were
instances, however, when EA signified its interest in a project and requested the project
owners to submit a more detailed plan, only to receive no feedback from them. Benjamin
mentioned that most of those who did not respond to EAs request had great ideas but did not
have a logical and realistic plan to develop it into a business. There were also those who were
turned down by EA but came back with a detailed plan and additional pointers that enhanced
their business plan. Some returned with a totally new idea or a new project proposal. To
some project owners, EA offered advice about how to make their projects feasible. In one
incident, EA became interested in a project as they saw the potential. EA told the owner that
he was not the right person to do the job because he was not connected to the business market
at all, and advised him to look for a partner who was already a significant player in the field.
The Company expected that in the first two to three years a project would be ready for sale or
floatation. The first year would involve the preparation and consolidation, and the second
year was supposed to signal profits coming in. The third year would be the right time to plan
and prepare the exit. This depended however on the speed of the project and the market
environment. Even if the project was not ready for exit at the planned time and was not
performing as projected, Benjamin said the project would probably not be in a very bad
position; this was due to the tight evaluation of the project from the very beginning. EA
would have already tested the viability of the project, and so it should have been able to standalone and operate with a reasonable profit. As EA was closely involved with all of the
projects, Benjamin said they would not just come to us today and say we have failed
because before that would happen we probably would be taking some remedies already. As
an alternative, the project would be sold off at a discount or rescued by consolidating it with
other relevant projects. Fifty per cent of the Companys projects would not require a second
round of funding. The other half would need a second or even a third round of funding before
they could move into the scale that was projected. These projects however had a definite plan
for a second or third round of funding, and it would be unlikely that they would approach EA.
Benjamin commented that EA believed in looking at the basic fundamentals, rather than how
soon the projects could be listed or sold. He explained the reasoning behind this belief:
A project may have a chance for listing in the near future, but if the
fundamentals are not right the project may lose this chance easily. With the
right fundamentals, a project would remain profitable even though I have to
stay on with the project for a relatively long time. The project can be listed
for some good value when the time is right.
The Project: part-time.com.hk
The evaluation process that was involved in the part-time.com project could be considered as
a typical example of what EA had to go through for each potential investment. The list
mentioned above outlined the general criteria used in evaluating every proposal. The list
included two primary factors: fundamental and new economy. Fundamental factors included
evaluating the proposal in terms of the business, company, people, the market, key strengths,
business strategy, financial, risk factors and the investment opportunity. New economy
8

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

factors included concerns such as technology, scalability and marginal costs, patentability,
impact of pirates and copycat, among others.
The project, part-time.com.hk, involved a Web-based interactive recruitment advertising
network specialising in part-time, temporary, freelance and contract-based job opportunities.
Established by Cybermax Network Technology Limited, the Web site became operational on
1 July, 2000. The target market of the Web site was those who were seeking for part-time
job. Part-time.com was created to facilitate the recruitment process for recruiters and the job
search for job seekers. Its mission: to provide recruiters with effective and user-friendly tool
to find the right talents, at the right time, and with the right price.
Cybermax Network Technology Limited was managed by a Board of Directors and a team of
experienced people in the fields of marketing, media, audio-visual production, Web design
and China projects; they had also extensive connections with recruiters and advertisers. The
management team consisted of the following key members (refer to Exhibit 9 for details):
Toney Lam:
Founder, Chairman and CEO
Edmund Tong: Chief Administrator
Elton Wu:
Chief Technical Officer
Three other Board members, who offered strategic advice on all aspects of management,
marketing and sales, backed up the management team.
The business model of this project was that recruiters were charged for their advertisements
posted on the Web; charges depended on the category and size of the advertisement. There
were three advertising packages offered to fit a companys needs and budget:
Service plan
Basic
Economy
Corporate

Service fee
HK$ 300.00
HK$ 500.00
HK$ 750.00

No. of ads
1
5
10

No. of resums
10
30
80

Validity period
30 days
45 days
90 days

With any of the packages, the number of job advertisements and resums could not be
changed. Each job was posted on the part-time.com.hk within 30 days. The number of
resums represented the number of resumes retrieved through Seeker Pool search function.
Other sources of income included non-recruitment advertising targeted at job-seekers and
sales commissions derived from promotion partners, e.g. credit card, bank and insurance
companies. For the job seeker, he/she had to register to become a member and use the parttime.com services. Membership at part-time.com.hk was free of charge. At the site, job ads
were processed on-line and real-time, and job-seekers were able to apply instantly as the
entire process of posting job ads on-line to receiving applications from job seekers took only
six minutes.
Both employers and people seeking part-time work went through a process that was
considerably different from the process that people seeking full-time jobs had to go through.
For example, part-time workers were more concerned about work times and places.
Employers need for part-time staff often arose and needed to be filled quickly. Many of
these particular characteristics of the part-time recruitment and matching process could be
enhanced by IT. Only part-time.com.hk offered this tailor-made part-time recruitment
advertising service in HKSAR, even though numerous online recruitment services geared for
full-time jobs were already existing in the market.

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

Cybermax already bought the domain name part-time.com as it had plans to establish the
business beyond the HKSAR. Operations were being planned in China and Japan, while
other Asian countries were also being considered. (See Exhibit 8 for the financial projections
Cybermax submitted.)
Challenges
The downturn in the equity market did not make EA change its investment strategy. The
strategy remained the same, but the available resources became limited, which meant EA
could put the money into only a limited number of projects. Market conditions also affected
the exit plans for the projects. There were very few investors interested in buying start-up
projects. As most of the projects that EA invested in were only a few months old and were
just starting, Benjamin said EA would have to let the projects operate and wait for the right
time to float or sell them. These days, nobody believes in empty dreams anymore,
Benjamin said. However, he was positive that the projects EA invested in were evaluated
based on the fundamentals and would therefore not die off. Besides, Benjamin said, the
basic formula is something that is going to be correct no matter what the market condition is.
On 6 November, 2000, the South China Morning Post published an article that said EA was
being attacked for its investment strategy.23 Written by a correspondent in London, the article
reported that officials at Artisan, a London-based property developer and EAs single largest
shareholder, were not satisfied with EAs strategy and that the strategy was wrong and was
not enhancing shareholder value. Chris Musselle, finance director at Artisan, said the
company should have taken steps earlier to revise its strategy, but it has spent all the cash it
had to invest. This news reached some of EAs shareholders and project owners. Benjamin
got calls from them asking what was going on with the Company. Benjamin explained that
the report referred to an opinion from Artisan that had been made much earlier, in a situation
when Artisan had requisitioned an extraordinary general meeting by the EA shareholders to
remove two existing EA directors and appoint three new directors representing Artisans
interests. EA directors felt that action was just opportunistic attempt by a minority
shareholder to take control of the cash resources available in EA, because no concrete
proposal on EAs change in business strategy was ever presented by Artisan. The
extraordinary general meeting was held on 20 September, 2000. All resolutions proposed by
Artisan were defeated. Benjamin saw that the SCMP report was a belated and repackaged
article and that the editorial team in Hong Kong had misinterpreted some of the facts. He
talked to the London correspondent and gave her an update on EAs projects to correct any
misleading message that had been created. In general, Benjamin talked about how EA was
responding to the market. There is not really a change in the investment strategy. The
market has not changed us because we have been following the same fundamental approach
that anybody should have done in any business. Benjamin believed that soon more people
would be following their approach, which was to look at the fundamentals and remove any
confusion created by IT jargon.
Given the market conditions in Asia, EA intended to focus on Asia, particularly the Far East.
Benjamin said:
Were definitely in Asia. First, our team is attached to Asia and our expertise
is here. Second, its because we still believe in Greater China or the Far
East, and no matter whats happening to a certain sector or whether theres a
short-term low cycle in the capital market, the Far East is still a place for our
future.

23

Snee, A. (2000), enterpriseAsia Attacked Over Spending Policy, South China Morning Post, 6 November.
10

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 1: GOVERNMENT INITIATIVES THAT ENCOURAGED THE GROWTH OF

E-COMMERCE AND E-BUSINESS IN ASIA PACIFIC

HKSAR

The HKSAR Government had repeatedly expressed its strong support for local IT
development. It launched the Digital 21 IT Strategy in November 1998 under the Information
Technology and Broadcasting Bureau to provide a framework that would make the HKSAR a
leading digital city of the 21st century. The Government actively participated in IT campaigns
and competitions, seminars and exhibitions, and initiated various projects to provide
improved public services and to empower the general public with the know-how and
confidence to use the Internet.
Mainland China

On the other side of the border, the Chinese government also placed great importance on the
development of the IT industry. From March 2000, commercial Internet companies, with
proper approval by the Ministry of Information Industry (MII) and relevant government
departments, were permitted to list on international stock markets. At the opening ceremony
of the 16th World Computer Congress on 21 August, 2000, President Jiang Zemin described
IT as one of Chinas top priorities and a driving force behind the countrys economic
development.
For the telecommunications and IT sectors, the MII was working on the gradual deregulation
of Chinas telecom industry, transforming the monopolistic mobile phone industry into an
oligopoly. Chinas pending accession to the World Trade Organization (WTO) would result
in lower tariffs, encouraging the importation of advanced technology and key equipment, and
the further liberalisation of Internet and telecommunication services, providing more
opportunities to foreign companies to invest in these businesses.
Under the direction of the Chinas State Council, Shanghai was designated as the first
Information Port. The goal was to turn Shanghai into a digital city where virtually all the
services, transactions and communications were to take place over the Internet. Up to August
2000, over RMB2 billion (US$240 million) had been invested into the project. For the
previous three years, a broadband network had been built in order to connect up the homes
and businesses in Shanghai. The Chinese government also established certification
authorities to safeguard the integrity of on-line transactions.
Development of the western region was also high on the governments agenda. Policies were
being set up to attract foreign investment and to speed up the deployment of e-commerce,
hence closing the gap with the more developed coastal provinces. The State had also planned
to end its involvement in the 270 government-subsidised technology research institutions,
beginning in October 2000. It was hoped that such changes would accelerate the
development of the IT industry and boost economic growth in China, once these institutions
started to operate as independent business entities.
Taiwan

Across the strait, the Taiwanese government planned to improve its competitive edge by
building intelligent industrial parks and developing Taiwan into a technology island.
Taiwans Ministry of Economic Affairs rolled out a four-year plan in 1998 (including the
creation of related financial structures and tax incentives) aimed at encouraging the islands
most important companies (up to 50,000 companies) to conduct commercial transactions over
the Internet by the end of 2001, bringing the annual projected e-commerce turnover to over
US$16 billion. The approval of a proposal to issue new national health insurance smart cards
beginning in 2001 further demonstrated the Taiwanese governments initiative to make use of
the latest technology in different sectors.
11

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

The Taiwanese government was preparing to launch its knowledge-based economy

development package on 1 January, 2001. Under the package, expenditure on research and
development was expected to account for three per cent of Taiwans gross domestic product
(GDP) within 10 years, and the total production value of knowledge-intensive industries was
expected to reach over 60 per cent of Taiwans GDP. The government would supply basic
network facilities, cultivate domestic talent and attract foreign expertise to Taiwan, establish a
mechanism for innovation and new ventures, and promote the application of information
technology and the World Wide Web.24
Other countries in the region
Singapore

In July 1999, Singapore relaxed the regulations for foreign Internet service providers, and
companies using the Web were no longer required to use a government-controlled proxy
server to download Web pages.
Japan

In summer 2000, Japan started to draw up a five-year plan to boost the long-overdue
development of its Internet sector and the rest of the IT industry. Huge amounts of public
funding were to be allocated to promoting IT. The Government had also agreed to lower the
connection charges that foreign companies had to pay to the local telephone company Nippon
Telegraph and Telephone Co. by 20 per cent in two years.25

24
25

Government aims to build knowledge-based economy, The Taiwan Economic News, 17 August, 2000.
Japan launches strategy to catch up with U.S., South China Morning Post, Associated Press in Tokyo, 4 September, 2000.
12

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 2: INTERNET GROWTH AND E-COMMERCE POTENTIAL IN ASIA

A. Asia's Internet Growth (millions)

1997
2.5
1.4
0.5
0.3
0.4
1.1
0.7
0.3
0.4
0.5
0.2
0.3

8.4

Australia
China
Hong Kong
India
Singapore
South Korea
Taiwan
Indonesia
Malaysia
New Zealand
The Philippines
Thailand
Vietnam
Total

1998
3.8
2.4
0.7
0.5
0.6
3.3
1.0
0.3
0.4
0.6
0.3
0.3

14.3

1999E
4.9
7.5
1.0
2.3
0.7
6.2
3.4
0.4
0.7
1.0
0.4
0.5
0.1
28.8

2000E
5.8
16.6
1.3
8.6
0.8
9.1
5.0
0.4
0.7
1.1
0.5
0.6
0.1
50.6

2001E
6.7
32.1
1.7
19.4
1.0
12.1
6.6
0.8
1.0
1.3
0.7
0.8
0.2
84.4

2002E
7.4
57.0
2.4
36.2
1.2
14.9
8.0
1.1
1.3
1.5
0.8
1.2
0.3
133.3

2003E
8.4
80.5
3.0
70.0
1.5
17.7
13.1
1.5
1.9
1.7
1.1
1.5
0.4
202.1

B. Asian Internet User Growth (1998 to 2003)

C. Consumer E-Commerce Potential in Asia

USA
1998
GDP
(US$billion)
Private
consumption
(%)
GDP per
capita (US$)
Private
consumption
per capita
(US$)

China

2000E

1998

Hong Kong

2000E

1998

2000E

India
1998

Korea

2000E

1998

Singapore

2000E

1998

2000E

Taiwan
1998

2000E

8,511

9,198

973

1,189

167

165

426

439

322

468

83

88

261

297

68

69

45

43

59

61

62

63

50

51

40

41

60

61

31,523

33,207

779

932

24,453

23,053

430

425

6,927

9,899

21,514

21,270

12,040

13,482

21,511

22,950

352

405

14,538

14,112

268

267

3,484

5,042

8,663

8,703

7,200

8,165

Source: Gupta, R. and Tan, S. (1999), Goldman Sachs AsiaWeb: 202 Million Internet Users
Expected in Asia by 2003, Goldman Sachs Investment Research, 14 October.

13

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 3: HONG KONG DISBURSEMENT OF INVESTMENT PORTFOLIO

1998 Investment Portfolio Total: US$5.817 billion

Disbursement to High-technology Industries
Industry
Computer related
Information
Technology
Telecommunications

Amount Invested
(US$ million)
254
89

Per cent of
Total
4.4%
1.5%

879

15.1%

Number of
Companies
156
38
61

Per cent of
Total
15.4%
3.8%
6.0%

Industry Classification
Computer related
Computers components
Computers desktops,
related equipment
Computers mainframes
Computers portable
Computers retail
Peripherals
Semiconductors
Software/OS/Other
applications
Software services

Information technology
Internet e-commerce
Internet content provider

Telecommunications
Cable
Cellular and wireless

Internet infrastructure
Internet networking
Internet online services
Internet offline services

Phones and related equipment

Satellite
Service provider

Disbursements by financing stage

Financing
stage
Seed
Start-up

Expansion
Mezzanine

Buyout

Turnaround
Other

Definitions

Per cent of Total

Financing for a venture with an initial concept for

research and development of a product
Financing for product development and initial
marketing to an early-stage company (has been in
business for a short time or is in the process of
being organised)
Financing for the growth and expansion of a
company with a short track record
Financing for a company to go public in the form of
a private placement in exchange for the company's
shares
Financing provided, in terms of loans and/or equity
investment, to enable the existing management
team or an outside investor to acquire a product line
or business
Financing for the re-establishment of a business
with performance difficulties
Financing made available for privatisation, bridge
loan and public market purchase

5%
27%

43%
2%

15%

6%
2%

Source: The 2000 Guide to Venture Capital in Asia (Eleventh Edition), Asian Venture Capital
Journal, October 1999.

14

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 4: MAINLAND CHINA DISBURSEMENT OF INVESTMENT PORTFOLIO

1998 Investment Portfolio Total: US$2.997 billion

Disbursement to High-technology Industries
Industry
Computer related
Information
Technology
Telecommunications

Amount Invested
(US$ million)
154
53

Per cent of
Total
5.1%
1.8%

144

4.8%

Number of
Companies
18
13
10

Per cent of
Total
5.3%
3.8%
3.0%

Industry classifications
Computer related
Computers components
Computers desktops,
related equipment
Computers mainframes
Computers portable
Computers retail
Peripherals
Semiconductors
Software/OS/Other
applications
Software services

Information technology
Internet e-commerce
Internet content provider

Telecommunications
Cable
Cellular and wireless

Internet infrastructure
Internet networking
Internet online services
Internet offline services

Phones and related equipment

Satellite
Service provider

Disbursements by financing stage

Financing
stage
Seed
Start-up

Expansion
Mezzanine

Buyout

Turnaround
Other

Definitions

Per cent of Total

Financing for a venture with an initial concept for

research and development of a product
Financing for product development and initial
marketing to an early-stage company (has been in
business for a short time or is in the process of
being organised)
Financing for the growth and expansion of a
company with a short track record
Financing for a company to go public in the form of
a private placement in exchange for the company's
shares
Financing provided, in terms of loans and/or equity
investment, to enable the existing management
team or an outside investor to acquire a product line
or business
Financing for the re-establishment of a business
with performance difficulties
Financing made available for privatisation, bridge
loan and public market purchase

8%
31%

41%
6%

9%

3%
2%

Source: The 2000 Guide to Venture Capital in Asia (Eleventh Edition), Asian Venture Capital
Journal, October 1999.

15

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 5: ASIA DISBURSEMENT TO HIGH TECHNOLOGY INDUSTRIES 26:

1998 Investment Portfolio Total: US$23.6 billion

Disbursement to High-technology Industries
Industry
Computer related
Information
Technology
Telecommunications

Amount Invested
(US$ million)
1,886
1,175

Percent of
Total
8.0%
5.0%

Number of
Companies
1,782
898

Percent of
Total
9.3%
4.7%

2,131

9.0%

709

3.7%

Industry classifications
Computer related
Computers components
Computers desktops,
related equipment
Computers mainframes
Computers portable
Computers retail
Peripherals
Semiconductors
Software/OS/Other
applications
Software services

Information technology
Internet e-commerce
Internet content provider

Telecommunications
Cable
Cellular and wireless

Internet infrastructure
Internet networking
Internet online services
Internet offline services

Phones and related equipment

Satellite
Service provider

Source: The 2000 Guide to Venture Capital in Asia (Eleventh Edition), Asian Venture Capital
Journal, October 1999.

26
Countries included Australia, Hong Kong, China, India, Indonesia, Japan, Korea, Malaysia, Myanmar, New Zealand, Pakistan,
the Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

16

July 2000

July 2000

August 2000

September
2000

September
2000

September
2000

CFN (UK) Limited

Winshare Technology
Limited

ecAgent.com Limited

Cybermax Network
Technology Limited

Best Wisdom Limited

Net Fun Limited

1,223,000 GBP
(US$1,931,117)

1,280,000 GBP
(US$2,021,120)

1,379,000 GBP
(US$2,177,441)

1,170,000 GBP
(US$1,847,430)

252,000 GBP
(US$397,908)

1,200,000 GBP
(US$1,894,800)

257,000 GBP
(US$405,803)

(Approximate)
856,000 GBP
(US$1,351,624)

Original
Investment

8%

50%

49%

33%

50%

39.9%

49%

Percentage
of Equity
Held
2.2%
Description

Based in Hong Kong. Provides interactive games to Internet users, with contents finetuned to the local language and culture. Its other shareholders include Cheung Kong
(Holdings) Limited and Excel Technology International Holding Limited, both of which are
public listed companies on the Hong Kong Stock Exchange, with extensive experience
and expertise in marketing, distribution and Internet technology and infrastructure.

Develops and provides a software system, under the brand name, "Unified Financial
Omnibus", to assist stock brokers, fund houses and custodian banks in the trading, fund
management and custodianship of Hong Kong and overseas securities.

Based in Hong Kong. Operates Web sites displaying recruitment advertising for part-time
jobs in Asia Pacific region.

Provides a virtual office environment to insurance sales agents in Greater China. It offers
a comprehensive range of sales management, administrative, marketing and financial
functions for the agents daily sales and administrative needs.

Develops major components for on-line stock trading systems used by brokers in Hong
Kong.

Operated in the UK, providing technical consultation and turnkey business-to-business

solutions to financial institutions and intermediaries. It is part of a global network based in
HKSAR.

Based in Hong Kong. Provides information technology and e-commerce solutions to

companies, with a main focus in the Greater China region. Its strength lies in areas such
as online payment logistics, Linux server solutions and Internet-enabled automated
systems customised for specific industries.

Originated from Mainland China. Designs, produces and markets semi-conductor chips
that connect appliances and equipment to the Internet, enabling home appliances and
business equipment to be controlled remotely. The technology platform does not directly
rely on TCP/IP, making it cost-effective. The methodology is pending US patents.

17

Source: enterpriseAsia.com plc: Interim Report and Accounts for the period ended 30 June, 2000, pp. 5-6.

June 2000

iBASE Holdings Limited

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 6: ENTERPRISEASIA.COM PLC INVESTMENT PORTFOLIO AS OF 31 OCTOBER 2000

Investment
Date

June 2000

Projects

P&S International
Limited

01/101C

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 7: BIOGRAPHIES OF ENTERPRISEASIA.COM PLC DIRECTORS

Peter So, Non-Executive Chairman

Peters career has focused on banking and finance. He was a director and head of global
institutional sales and research at Wardley James Capel Limited, a director and head of
project finance at Citicorp International Limited, managing director of Bestform Far East
Limited and deputy managing director of Jinhui Holdings Company Limited. He is currently
chairman of StartIT.com plc, a director of Vintage Investments Limited and a non-executive
director of Lupus Capital plc, Jinhui Holdings Company Limited, Jinhui Shipping and
Transportation Limited and China Assets (Holdings) Limited.
Benjamin Ng, Chief Executive Officer

While Benjamins academic background is in mathematics and computing science, his career
has been mainly in marketing and finance. He has held senior positions in a number of
leading international advertising agencies including Bates and J. Walter Thompson, managing
client accounts including fast moving consumer goods, banking, airlines, telecommunications
and IT products and services. Most recently he was executive director of DDB Greater China
based in Hong Kong. Formerly, he was director of Bestform Corporate Finance Limited and
has worked for Citibank Canada. He is currently a member of the Certified General
Accountants Association of Canada and an Affiliate Member of the Association for
Investment Management and Research.
Siu Fai Ng, Non-Executive Director

Siu Fai Ng is chairman of Jinhui Holdings Co Ltd (Hong Kong listed) and Jinhui Shipping
and Transportation Ltd (Oslo listed). He has extensive knowledge of shipping and trade with
China. From his experience in co-founding his own companies in 1987, he has developed an
interest in start-up businesses both at the micro and macro level, specialising in strategic
planning. He is a member of the Hong Kong branch of the Pacific Basin Economic Council.
Phillip Brown, Corporate Relations Director

Phillip has had a career in marketing and business development. He is ex-divisional director
of Yorkshire Electricity Group plc where he was responsible for start-up companies and new
business ventures, including the formation of Torch Telecom Limited, a company specialising
in delivering voice and data communications in the corporate sector. He has experience in a
wide range of new business ventures from fine alloys to cable TV. He was also UK
representative on an advisory committee of DGXII (research and development) of the EU.
Currently, Phillip is chief executive of StartIT.com plc, a director of Vintage Investments
Limited and non-executive chairman of GLS Software Limited.
Source: enterpriseAsia.com plc: IPO document, pp. 9-10.

18

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 8: FINANCIAL PROJECTS SUBMITTED BY CYBERMAX

Cost Projections for Three Years

Year 1 (HK$)

Year 2 (HK$)

Year 3 (HK$)

1 Equipment / Hardware / Decoration

2 Office Expenses
$ 1,248,000.00
$ 7,839,877.50
3 Staff Cost
4 Promotion Cost
$ 3,000,000.00
$ 12,123,877.50
Total
Overall cost of operation for three years = $ 41,008,927.50
$ 1,812,000.00
$ 1,248,000.00
$ 7,111,000.00
$ 6,000,000.00
$ 16,171,000.00

$ 1,248,000.00
$ 7,466,550.00
$ 4,000,000.00
$ 12,714,050.00

Estimated Revenue for Three Years

Year 1 (HK$)
Average cost per recruiter ad
$ 300.00
3,200
Quantity per month
No. of revenue generating months
9
$ 8,640,000.00
Sub-total
Revenue from other ads
$ 3,412,500.00
$ 12,052,000.00
Total Revenue
Overall total revenue for three years =

19

Year 2 (HK$)

Year 3 (HK$)

$ 400.00
6,000
12
$ 28,800,000.00
$ 8,472,000.00
$ 37,272,000.00

$ 500.00
6,800
12
$ 40,800,000.00
$ 14,922,000.00
$ 55,722,000.00

$ 105,046,500.00

01/101C

enterpriseAsia.com: Investing in High-technology Businesses in Asia Pacific

EXHIBIT 9: BIOGRAPHIES OF PARTTIME.COM MANAGEMENT

Toney Lam, Founder, Chairman and CEO

Toney was a graduate of the Hong Kong Baptist University and had a formal training in
Computer and Software Engineering. He was actively involved in a number of business
application projects and was a major player in the development of Realty Property
Management Software (RPMS), which was widely adopted by leading real estate agencies.
Edmund Tong, Chief Administrator

Edmund was a graduate of the University of Hong Kong with a Bachelors degree in Civil
Engineering. He had over 20 years of experience in running his own business in different
industries including interior design, property development and construction in Hong Kong
and China. In 1999, Edmund was involved in business development of an IT company that
specialised in website development.
Elton Wu, Chief Technical Officer

Elton was the head of the web applications development team and was also responsible for
the overall operation and architecture of the website. He was knowledgeable in various
Internet languages, graphic design software, database management and network
administration, and was proficient in various programming languages.

20