The Group's name has been changed from "Technology Venture Holdings Limited" to "Venture International Investment Holdings Limited" since July 21, 2006, following a series of business realignment measures taken in 2005, including the acquisition of Acacia Asia Partners Limited ("Acacia"), the disposal of its interest in Advanced Digital Technology ("ADT"), and the sale of half the 14.96% equity shareholding it held in ChinaCast Communication Holdings Ltd ("ChinaCast") to the Group's Chairman and the remaining half to be exchanged for shares in Great Wall Acquisition Corporation ("Great Wall"). The acquisition of PRC real estate services provider Grand Panorama was completed in August 2006.
Mr Ron Chan Tze-ngon, Chairman of Venture International Investment Holdings noted: "The name change reflects the Group's new corporate positioning as an investment company to focus on the property agency market in China. While the existing ATM maintenance service through TopAsia remains a core business stream, Acacia which provides computer technology services primarily to property agency business in Shanghai is the latest core focus for business development."
TopAsia continues to provide repair and maintenance services to self-service facilities to the banking and finance sector of China. Turnover of this division has decreased by 70%, but it was able to achieve an improved gross profit margin of 10% as compared to 6% in the corresponding period.
There has been encouraging progress in expanding business opportunities with Bank of China, primarily the Yunnan Branch; Bank of Communication with branches in Jiaxing, Wenzhou, Zibo and Xuzhou, and also Hunan Postal Bureau etc. as the new customers. The division also continues to cooperate with supplier Diebold to provide ATMs and automatic deposit machines (ADMs) to the China Merchants Bank branches in Xian, Chongqing, Shenyang, Shanghai, Ningbo, Xiamen and Shenzhen, etc.
On the software business front, TopAsia's relationship with IBM on the development of data management software continues to thrive. One of the most prominent projects is the provision of data management and data warehousing protection services to customers, with new orders expected to be forthcoming in the second half.
The Group acquired Acacia - a provider of IT management, online and support services as well as Internet portal and data management services to property agencies in Mainland China - in late 2005. Its prime business is to provide web-based platforms to small to medium-sized property agencies in accessing key information in respect of the property market and potential investors in China, initially in Shanghai. The Central Government's announcement of new regulations to cool down the property market in Shanghai has deterred some already committed property agents from using Acacia's web-based platforms, but Acacia is hopeful that the pent-up demand will help stabilize the market in the near future.
In September 2005, the Group announced the undertaking to exchange its 14.96% shareholding in the Singapore-listed ChinaCast, a provider of technology services by using satellite, with 3,103,543 shares in Great Wall which is being traded over-the-counter on NASDAQ in the US. Subsequently on 28 July 2006, the Group announced that Great Wall had extended the long stop date of the proposed share swap program to 31 December 2006.
Instead of waiting for the completion of the offer, the Group considered it more favorable to dispose of half the 14.96% equity shareholding it held in ChinaCast to the Group's Chairman and the remaining half to be exchanged for shares in Great Wall at a later date. The disposal of half the interest presents a more certain and efficient way to realise part of the Group's investment in ChinaCast, in particular taking into account of the extension of the long stop date of the offer to the end of 2006. It is expected that the Group will record gross proceeds from the disposal of HK$45,279,000, and a net gain of approximately HK$5.5 million upon completion.
The completion of the acquisition of Grand Panorama in August 2006 gave the Group a headstart in the PRC market for professional real estate services. Through the acquisition, the Group is able to secure a team of professional and experienced key staff with first-hand knowledge in the real estate brokerage business of the PRC. The Group looks forward to achieving synergies from the unit's future collaborations with the other business divisions.
The Group is now evolving into an investment company to focus on the property agency market in China, and also to grow its existing self servicing banking products and solutions business.
Financial Highlights| Six months ended June 30, | ||
| 2006 | 2005 | |
| HK$ '000 | HK$ '000 | |
| Turnover | 23,916 | 127,160 |
| Loss from operating activities | (16,956) | (31,301) |
| Net loss from ordinary activities attributable to shareholders | (17,041) | (29,968) |
| Basic (loss) per Share (HK cents) | (3.06) | (5.96) |
About Venture International Investment Holdings Limited Issued by : Through :
Venture International Investment Holdings Limited (HKEx: 61) is an investment company with focus on the property agency market in China, supported by IT management house Acacia and professional real estate services provider Grand Panorama. TopAsia's ATM maintenance service also remains a core operation.
Venture International Investment Holdings Limited
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