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CDC Corporation, with registered office located in Causeway Bay, Hong Kong, is engaged in the provision of enterprise software, online games, mobile services and applications, and Internet and media services. The company operates through the following segments: Software segment, which offers enterprise resource planning, customer relationship management, supply chain management, order management systems, human resources and payroll management, and business intelligence products; Business Services segment, which offers information technology services, eBusiness consulting, and web development and outsourcing, as well as a marketing database and marketing support service; Mobile Services and Applications segment, which provides news and mobile applications services targeting the consumer market in China; Internet and Media segment, which focuses on online entertainment and Internet products and services that target users in China and Chinese communities worldwide through its portal network china.com and hongkong.com; and Games segment, which is involved in the development and operation of online games in China. CDC Corporation was founded as China Information Infrastructure Limited in 1997. It changed its name to chinadotcom corporation in 2000 and subsequently to CDC Corporation in 2005.
CDC Corporation is a leading global provider of enterprise software solutions to medium and large enterprises. The company operates in North America, Europe, the Middle East, Africa, and the Asia Pacific region. It has established strategic partnerships with leading international software vendors to localize and resell the company’s software products. It also has several IT, web development and business services companies in Australia, Korea, and the United States.
The Corporation is a pan-Asian integrated internet company and its business model is centered around three key components: e-business solutions, advertising(e-marketing services, portal services and other media assets) and sale of IT products.
Description and history
The Company (NASDAQ: CHINA) is principally involved in enterprise software, business services, mobile applications and internet media. The Company offers the following services to companies throughout Greater China and Asia, North America, the United Kingdom and the rest of
Enterprise software business includes ERP (Enterprise Resource Planning), SCM (Supply Chain Management), CRM (Customer Relationship Management), HRM (Human Resources Management) and BPM (Business Performance Management). The Company has established strategic partnerships with leading international software vendors to localize and resell the Company’s software products throughout the Asia Pacific region.
Business services in Hong Kong, Australia, Korea, and the United States provide program management, outsourcing services, application development and on-going support services using a comprehensive range of technologies.
Mobile applications concentrate on the market in China. The Company offers consumer-based and enterprise-based mobile applications services including SMS (Short Message Services), IVR (Interactive Voice Response), MMS (Multimedia Message Service) and WAP (Wireless Application Protocol) in China. Through its companies in China, it has direct connectivity with local mobile operators in 29 provinces.
Internet media focused on online entertainment and internet services that target users in China; providing both online games and a broad range of online products and services via its portal network ( www.china.com; www.hongkong.com).
The Company was incorporated under the laws of the Cayman Islands in June 1997 as a wholly-owned subsidiary of China Internet Corporation Limited (‘CIC’), a company incorporated under the laws of Bermuda.
In March 2000, hongkong.com Corporation (‘hongkong.com’), a then wholly-owned e-business solutions and advertising services provider, was listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited and 736,000,000 shares of hongkong.com were issued at a price of USD0.24 per share for net proceeds of USD168,462. As a result, the Company’s shareholding in hongkong.com was diluted to 84%. Currently, the Company’s ownership interest is 81.3%.
On December 12, 2003, the Company announced that it would reorganize its mobile and portal unit as a wholly-owned subsidiary, chinadotcom Mobile Interactive Corporation, ‘CDC Mobile’), and register an offering of CDC Mobile’s American Depositary Shares under the Securities Act of 1933, as amended. The purpose of the intended offering is to fund the operations of CDC Mobile following its reorganization as an independent company holding the Company’s assets and businesses that provide mobile services and applications, advertising and interactive media and internet services. As a selling shareholder, the Company may also receive proceeds from the intended offering. While the offering is expected to commence in the first half of 2004, subject to the completion of all applicable regulatory review, there is no assurance that it will be successfully completed. The Company anticipates that Newpalm will be included within CDC Mobile.
On February 25, 2004, the acquisition of Pivotal Corporation (‘Pivotal’) (NASDAQ: PVTL and TSX: PVT) was completed for a total consideration of approximately USD60,000, which comprised (i) cash of USD35,925, (ii) 1,846,429 of the Company’s Class A common shares, which would result in an approximate 2% increase in the Company’s common shares outstanding, (iii) the assumption of Pivotal stock options of USD481, and (iv) estimated transaction costs of approximately USD550. The Company is in the process of assessing the allocation of the purchase price for Pivotal.
In February 2004, CDC International Mobile Limited, a wholly-owned subsidiary of CDC Mobile, signed an agreement to acquire a 100% interest in Group Team Investments Limited (‘GTI’), a company incorporated in the British Virgin Islands, subject to customary closing conditions. Pursuant to the corresponding sales and purchase agreement, the total purchase price is subject to certain earnout provisions, whereby a portion of the purchase price is based on the future earnings of GTI and certain entities, which are beneficially owned by GTI and are engaged in the provision of valued-added mobile services to mobile phone subscribers in Mainland China, for the years ending 31 December 2004 and 2005, and is subject to a maximum limit of USD60,000. In connection with the acquisition, the Company made an initial payment of USD9,600 in April 2004, with remaining consideration, not to exceed USD50,400 to be paid in two installments in early 2005 and 2006.
Founded as China Information Infrastructure Limited
Engaged in the provision of enterprise software, online games, mobile services and applications, and Internet and media services
DELOITTE & TOUCHE LLP
US SIC Code
City province or state postal code
Phone: +852 2893 8200
Fax: +852 2893 5245
Country address: CAYMAN ISLANDS
Website url: www.cdccorporation.net