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The Group is one of the leading Internet content providers in the PRC in terms of total advertising revenue. The Group operates six vertically-integrated portals, including PConline which, is the largest portal in the PRC specialising in IT product-related content, in terms of advertising revenue, and PCauto, which is the second largest portal in the PRC specialising in automobile-related content, in terms of advertising revenue. According to industry practice, the vertically-integrated portals are portals that focus on specific content.
The Group's business model is based on the provision of specialised content designed to provide online users with product and brand information required to make an informed purchasing decision. The Group's ability to develop substantive and specialised content to facilitate product selection enables the Group to continue to increase its active user base. The Directors believe that these drivers in turn attract advertisers seeking to influence the purchasing decisions of the Group's highly desirable user base, who in most cases have an intent to purchase when visiting the Group's portals.
The Group has six vertically-integrated portals, PConline (www.pconline.com.cn), PCauto(www.pcauto.com.cn), PCgames (www.pcgames.com.cn), PClady (www.pclady.com.cn) , PCbaby (www.pcbaby.com.cn) and PChouse (www.pchouse.com.cn) in simplified Chinese language that offer specialised content relating to key industries such as IT-related products, automobiles, PC games, women lifestyle-related topics, and parenting-related issues. These consumer products-related industries offer significant growth potential in China's growing economy, which in turn drive advertising demand on the Group's portals. The features and services offered on the six portals are tailored to the specific interests and needs of targeted consumer groups. The largest portal, PConline, has approximately 40 main content "channels," a variety of features and web-based communication tools and services. "Channels" consist of guides and directories incorporated into the user interface system on the Group's portals, which provide users with an efficient way to explore and utilise content. Each of the main channels contains multi-level sub-channels that cover a wide range of topics including product reviews, product comparisons, store locations and product prices. The Group also increases the popularity of its portals among users by providing chat rooms, free downloads and special interest clubs. All of the Group's portal features and services are tailored to meet the needs and preferences of Internet users in China. In addition, the Group's portals are user-friendly and easy to navigate.