Hong Kong, August 8, 2000
Company ideally positioned to take advantage of market consolidation with HK$1.2 billion Cash and Marketable Securities
— hongkong.com Corporation (www.hongkong.com; GEM stock code 8006), a subsidiary of chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) today announced its financial results for the second quarter of 2000.
The Company achieved a net profit of approximately HK$2,262,000 for the second quarter ended 30th June 2000. This compares to a net loss of approximately HK$2,147,000 in the second quarter of 1999 and a net loss of approximately HK$11,334,000 in the first quarter of 2000.
Total turnover for the Company's second quarter of 2000 was approximately HK$20,281,000, a 78 times growth compared to the same period in 1999 and a 24 percent growth over the first quarter of 2000.
During the quarter, revenue growth was driven by advertising, sponsorships and content services, reflecting the Company's ability to continue to leverage the value of hongkong.com's increasing daily page views and its strong base of community users.
In the second quarter, hongkong.com achieved over 1.2 million registered subscribers and over 4 million pageviews based on audit guidelines. hongkong.com are amongst the first in Hong Kong to base its pageview numbers on strict and clearly defined standards,* thereby, providing assurance to its advertisers the accuracy of its pageview numbers.
"We are happy to pass this important milestone but our sight is ahead. We aim to deliver consistent profit growth going forward, by being the best in content, the best in community services and the leader in commerce" commented Mr. Rudy Chan, Chief Executive Officer of hongkong.com Corporation.
The Company's net profit was due to increasing business opportunities generated by its unrivalled brand recognition; its continuous efforts in exercising financial disciplines and managing its investment income.
"I congratulate everyone at hongkong.com Corporation for achieving profitability. We expect more dislocations to take place in Hong Kong internet market in the coming months. hongkong.com's strong and disciplined management team and healthy balance sheet put us in an advantageous position to capture opportunities resulting from the ongoing consolidation. For the longer term, I would like to see hongkong.com Corporation in the front ranks of Hong Kong based companies providing excellent total shareholders' return." Said Dr. Raymond Ch'ien, Chairman of hongkong.com Corporation.
hongkong.com Corporation's significant achievements over the past two quarters are a manifestation of the management's ability to leverage and manage resources and most importantly, ability to clearly focus and execute a business based on the 3C's strategy - Content, Community and Commerce.
Since hongkong.com Corporation's successful listing on the GEM in March 2000, it has further enhanced its content quality by adding another 5 new channels - mycv.hongkong.com, car.hongkong.com, euro2000.hongkong.com, shopping.hongkong.com and wap4u.hongkong.com; strengthened its market leadership in community service products through an enhanced version of its existing web-based freemail service; launched new chat rooms in both Chinese and English portals; launched e-match, a highly interactive online love-matching platform; and further increased its
e-Commerce platform offerings by introducing The Avenue, an integrated online department store providing a variety of trendy lifestyle merchandize.
"Achieving profitability in our second quarter financial results demonstrates that the management team of hongkong.com Corporation is executing its business plan well and continues to strive for further growth and profitability. This has been all along one of our Company's major objectives since our successful listing on GEM. Our market leadership position in the Internet industry is further strengthened with this financial performance and we believe such recognition extends beyond Hong Kong into the region." said Mr. Chan.
hongkong.com Corporation was recently awarded "The Best Internet Content Provider" prized by Capital Magazine, a well-respected local business magazine.
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.
hongkong.com has been recently awarded The Best Internet Content Provider by Capital Magazine. As a leading Hong Kong portal, hongkong.com to date achieved 5.3 million pageviews. With efforts to build online communities, encouraging a wider user base, effective marketing campaigns and 23 vertical channels of localized content, hongkong.com has acquired 1.2 million registered subscribers at the end of second quarter, a more than 58% 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.
*Definition of "pageview"
The opportunity for an HTML generated document to appear on a browser window as a direct result of a user's interaction with "hongkong.com" web site and/or its related channels and/services. Specially, the following activities are included or excluded from the pageview count:
Included - HTML generated documents containing multiple frames are counted as ONLY one pageview.
Included - HTML generated documents arising from automatic "refresh" program routine built in the web pages at different refresh rates.
Exclusions - Non-HTML generated documents including image or script files.
Exclusions - Page view served from cache.
Exclusions - Activities generated by popular search engines and known personal spiders.
Exclusions - Activities generated from the internal IP address.
Exclusions - All banner advertisements served internally by web servers.
Exclusions - HTML generated document resulting from "failed" browser request, i.e., error pages
Exclusions - Pop-up pages
Exclusions - Splash and redirect pages
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is a leading pan-Asian integrated Internet company offering web solutions, portal and online advertising services. Through its three business units, chinadotcom provides 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 platform (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online marketing (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 America Online, Softbank, Trans Cosmos and Agence France Presse, chinadotcom is well-positioned to create long term shareholder value through its investments.
The company has 28 offices across more than 10 markets, including Japan, Korea, Australia, Hong Kong, Taiwan, Singapore, Thailand, Malaysia, and USA. For more information about chinadotcom corporation, please visit www.corp.china.com.
For More Information