Business Editors/High Tech Writers
BEIJING, China--(BUSINESS WIRE)--June 14, 2000--Intermost
Corporation (OTCBB: IMOT). In the middle of May, 2000 an e-commerce
based alliance was formed between Guangdong Midea Group, Sun Hung Kai
Properties Ltd, Shenzhen HuaQiang Group, Intermost Corporation Ltd.
and two of other Chinese large appliance manufacturers. The joint
venture is Shenzhen SinuE.com E-commerce Ltd, a company that will soon
have an annual turnover above 100,000,000,000 RMB, and will engage in
the establishment of Chinese first household appliance manufacturer's
B2B procurement platform.
According to SinuE.com's CEO, Mr. Jun Liang, "As a joint exchange
platform, SinuE.com will have more competitive advantages than
separately launched platform by individual manufacturer." Mr. Liang
cited the alliance of the American "Big Three" automobile magnates to
support the idea that an individual manufacture cannot stand alone to
monopolize the Internet-based procurement market by itself. He
believes that due to large industry scale, the presence of only a few,
highly concentrated brand names, Chinese household appliance
manufacturers are ready to conduct its e-commercialization, much more
so than other Chinese industries. Additionally, the home appliance
industry is achieving maturity in market operation, and is playing a
more and more important role in international markets. Being supported
by such a powerful industrial alliance, SinuE.com will be well
positioned in terms of mutual compatibility among the players.
Mr. Liang also points out that the value of e-commerce is evident.
This initiative benefits manufactures, suppliers, and the industry as
a whole. In the case of manufactures, by conducting on-line purchasing
through the exchange platform provided by SinuE.com, the increased
efficiency of large scale purchasing, will result in a 5-10%
procurement cost savings within two years. For suppliers, SinuE.com's
exchange platform will provide an equal opportunity for competition
and eliminate under-table deals. For the whole industry, the exchange
platform will enhance its competitiveness in international markets.
Mr. Liang believes the combination of SinuE.com's operating
mechanism characterized by buyer dominance, and its strategy of
capital linkage are key to the success of the alliance. Under the
operating mechanism, allied manufacturers will achieve the full
benefits of scale with large on-line purchasing. SinuE.com thus makes
itself an attractive business partner to suppliers and manufacturers.
And to establish Capital linkage, SinuE.com will act as an independent
third party whose equity and partnership will be equally and widely
open to Chinese household appliance manufactures. Through this capital
linkage, all the allied manufacturers will create a sense of
belonging, and jointly build up a truly beneficial exchange community.
Source: Nanfang Daily
Note: translated from Chinese text from an article originally
published May 24, 2000
Intermost is a China-based Internet technology company, focused on
the development and delivery of scalable business-to-business
e-commerce solutions. The Company promotes its name and products via
its B2B portal, ChinaE.com. The Company also develops and markets an
electronic payment system that allows for both telephone and online
payment of consumer-oriented monthly bills, and markets broad-based
procurement platforms for the Chinese home appliance industry.
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements and other written statements made or to be made by
Intermost) contains statements that are forward-looking, such as
statements relating to the consummation of transactions, anticipated
future revenues of the companies and success of current product
offerings. Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results
in the future, and accordingly, such results may differ materially
from those expressed in any forward-looking statements made by or on
behalf of Intermost.
Investor information can be found on the web at:
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