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21 February
2001
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| iBusiness Corporation Limited
(iBC) has recently made an investment in TradeTextile.com Inc.
(TradeTextile), the leading B2B e-commerce trading hub and e-enabling
solution provider for the textile and apparel industry. |
|
| Established in January 2000,
with headquarters in Hong Kong and an office in Shanghai, TradeTextile
has two principal business activities: (i) operation of a B2B
exchange, and (ii) provision of application services. Currently,
the operation has an impressive list of over 8,000 members,
of which about 60% are import & export companies and manufacturers
in Hong Kong and Mainland China, and the rest global buyers
from around the world. |
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| The trading platform currently
covers five product categories and is seeking to expand into
more categories. The five categories are: raw materials (e.g.
fibers and silk), yarns, fabrics, garments, and home furnishings
(e.g. blankets, pillow cases, and carpets). Through this online
platform, buyers and sellers can make savings on procurement
costs and increase marketing effectiveness by matching and making
transactions through online catalogues, arranging auctions,
and requesting for quotations online. |
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| TradeTextile's in-house developed
e-enabling solution offers software rental and hosting service
assisting textile companies to set up their on-line shops. Due
to the ease in customization and TradeTextile's already established
backend infrastructure, clients can set up their online storefronts
within a short period of time, even, say a week. Named"e-store"and"e-store
lite" (a simplified version), these applications have been well-received
by textile companies since their September launch. At present,
there are already nine "e-store" and 19"e-store lite" clients. |
|
| Following a full year's research,
development and operations, TradeTextile will concentrate on
strengthening sales and distribution of textile related applications
and will explore other value-added applications so as to empower
its revenue streams in 2001. In addition, TradeTextile plans
to incorporate ERP, supply chain management and CRM functionally
on its "e-store" platform. Appropriate valuable new alliances
and strategic partners will also be considered. |
|
| "We see great potential in TradeTextile,"said
Mr Edmond Ip, Executive Director and Chief Executive Officer
of iBC. "TradeTextile's services add value to clients both in
regards to improving efficiency by streamlining sales and procurement
process as well as assisting brick-and-mortar companies convert
into click-and-mortar companies in a short period of time and
with great ease," commented Mr Ip. |
|
| "China's pending
entry into WTO and the changes which are to take place in textile
quotas will stimulate further growth in the textile industry.
The strong fundamentals underlying TradeTextile should provide
a basis for robust business growth and a warranted path to profitability,"
stated Mr Ip. |
|
| "We are very excited
about iBC's joining TradeTextile. By leveraging the marketing
channels as well as the customer base of the shareholders of
iBC, iBC will be a great asset to TradeTextile from the introduction
of business partners and customers to the areas of strategic
planning, marketing, and business development, " said Mr Cheung
Yik Fan, Chairman of TradeTextile. |
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| Subsequent to iBC's investment
in TradeTextile, iBC has become the second largest shareholder
of TradeTextile, next to the founders, holding approximately
28% of the company. |
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| Founders of TradeTextile are
Mr. Cheung Yik Fan (Chairman), Mr Cheung Chi Wan, Allan (CEO)
and Mr. Xu Chen Jian (CTO). Other shareholders of the company
include the NYSE-listed US company, Entrade, and world renowned
e-commerce visionary Professor Steven Kaplan. |
| |
| iBusiness Corporation Limited
(iBC) was established early in year 2000 by four blue chip companies:
Cheung Kong (Holdings) Limited, The Hongkong and Shanghai Banking
Corporation Limited, Hutchison Whampoa Limited and Hang Seng
Bank. The Internet joint venture intends to be the dominant
service provider and business facilitator to develop e-commerce
business on the Internet. Cheung Kong and Hutchison jointly
hold approximately 75% of iBC while HSBC and Hang Seng hold
approximately 25% of the joint venture. |
| |
| Entrade is a NYSE-listed company
in the US and specializes in developing state-of-the-art suite
of web-enabled software applications to power B2B e-commerce
solutions and needs. |
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