Hong Kong, May 14, 2000
Strongest Balance Sheet with HK$1.2 billion in Cash
— hongkong.com Corporation [www.hongkong.com; GEM stock code 8006], a subsidiary of chinadotcom corporation, today announced its financial results for the first quarter of FY2000.
Total revenues for the quarter ended March 31, 2000 were HK$16.3 million, a 9,327 percent increase from total revenues over the same period in 1999. The company's operating loss during the first quarter of this year was $15.8 million, while net loss was $11.3 million.
hongkong.com had three primary areas of revenue including advertising, content services and e-Commerce. Respectively, revenue for these areas were $8.2 million, $6.9 million, and $1.2 million, representing 50 percent, 42 percent and 8 percent of total revenues. During the quarter, the number of advertisers on hongkong.com increased to 70 from 40 in the previous quarter. e-Commerce was a new stream of revenue this quarter due to the launch of hongkong.com's Shop4U service at the end of 1999.
hongkong.com Corporation achieved 3.2 million daily pageviews in the quarter, representing 28 percent growth from the previous quarter, and the company reached 1.1 million registered subscribers by March 31, 2000.
"We are very pleased with our first results announcement since our IPO this year in March," commented Rudy Chan, Chief Executive Officer of hongkong.com Corporation. "Despite the recent volatility throughout the global stock markets, hongkong.com is well positioned to continue to execute its business plan due to its strong balance sheet relative to other local portals. We have over $1.2 billion in cash as a result of our successful GEM listing, and combined with the strong momentum we have built throughout the past year and a half, we have considerable strength to leverage towards our continued growth."
Throughout the first quarter, hongkong.com continued to execute its "3C's" strategy - Content, Community and Commerce.
"hongkong.com has invested in a total number of 21 major content channels, three of which were launched during this quarter," said Mr. Chan. "We are certain that our impressive pageview growth is a result of our focus on building unique online communities for our users. It is the strength of our content, and the resulting dynamic communities that we have created that make hongkong.com a leading portal in the region."
hongkong.com's investment in infoisLive.com Ltd., a leading Wireless Application Services (WAP) provider, demonstrates the portal's commitment to providing the latest technology to benefit its subscribers. hongkong.com uses its investment in WAP technology as an alternative distribution platform for its content, thereby creating additional options for subscribers.
e-Commerce has also been a new area of revenue growth and the company expects to see continued growth as it rolls out its regional e-Commerce initiatives during the next several quarters. In particular, the company seeks to invest in e-Commerce infrastructure as part of its regional growth strategy.
Mr. Chan continued, "Our outlook for this year remains positive, as we will increase the number and depth of our content channels, as well as expand the number of community products to maintain the growth momentum of hongkong.com's registered subscriber base. Furthermore, the recent correction in global stock markets would allow us to make acquisitions and investments at much more attractive prices, and this will benefit our shareholders. Our impressive performance in the past quarter is a manifestation of our sound execution of a clear and focused strategy."
About hongkong.com Corporation
hongkong.com has established strategic alliances with a number of prominent, internationally recognized businesses including AOL, Netscape, 24/7 Media Asia, RealNetworks, Visitalk.com, Xinhua News Agency, Agence France-Presse, Reuters and Stockhouse.com. They offer content, technology and distribution capabilities as well as marketing, e-commerce and cross-promotional opportunities. Main channels available on hongkong.com include technology, finance, beauty, sports, entertainment and the cityguide.
As one of the leading Hong Kong portals, hongkong.com achieved 3.2 million daily page views. With efforts to build online communities, encouraging a wider user base, effective marketing campaigns and 21 vertical channels of localized content, hongkong.com has acquired 1.1 million registered subscribers, a more than 44% increase from 760,000 registered subscribers in the fourth quarter of 1999.
Partnering with world recognized advertisers including IBM, KLM, HKMA and Compaq, hongkong.com has already generated significant growth in revenue from its online advertising opportunities. As hongkong.com's e-commerce operation continues to develop regionally and globally, it will strengthen hongkong.com's position as one of the preferred advertising sites.
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is a leading pan-Asian Internet company offering web solutions, portal and online advertising services. Through its three business units, chinadotcom is able to provide a full range of Internet services around the Asia Pacific region that; 1) build e-business strategies and solutions (Web Connection), 2) distribute content via its portal network (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online advertising (24/7 Media Asia).
Fuelling the growth of each of these three business units is a synergistic investment strategy that leverages on chinadotcom's existing operational and cost infrastructure. By partnering with companies that have proven and successful track records, such as Agence France Presse, AOL, Softbank Investment Strategic and Trans Cosmos, chinadotcom is well-positioned to create long term shareholder value through its investments.
The company has over 1300 employees in 24 offices across 10 Asian markets, including Australia, Hong Kong, Japan, Korea, Malaysia, Singapore and Taiwan. In Mainland China, the company has 12 offices and over 350 employees. Major corporate shareholders include America Online Inc., Mitsui & Co. Ltd., Nortel Network Corporation, New World Infrastructure Limited and 24/7 Media Inc. For more information about chinadotcom corporation, please visit www.corp.china.com.
Safe Harbor Statement
The statements in this news release, other than the historical financial information, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect hongkong.com Corporation's result of operation is detailed in hongkong.com Corporation's prospectus, as filed with the Growth Enterprise Market of the Stock Exchange of Hong Kong, Limited.
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