MONTHLY REPORT

Li Pin

February 2003

MARKET NEWS FOR THIS MONTH (black bold news means important)

Week 1

1. This year, HSBC and City Bank will get the permit to make their credit card available in China. So for Chinese people, this year, they can get the chance to hold a international bank credit card.

http://finance.sina.com.cn/b/20030203/0841308324.shtml

2. More and more people like sending SMS to greeting Chinese new year, the first day of Chinese new year, Over 2 million users send over 10 million greeting SMS from Sina, this is the highest daily trafic of Sina SMS.

http://tech.sina.com.cn/i/c/2003-02-01/1907163972.shtml

New data is: there are total 95,700,000 register subscribers of NETEASE by last december, this is from NETEASE home page. Why this number is much bigger than Chinese total Internet users? I thought: 1, because still overseas Chinese can use it, 2. Maybe one user can register twice or even more.

Week 2

From the First day of Chinese New Year to the 7^th day of Chinese New Year, the seven days, there are total 5.6 billion messages being sent in China mainland. And 20% were send through portal website, so in the 7 holidays, the China portal websites almost earn 400 million RMB through SMS.

And here is the agreement about how to share the income from SMS for Operator and Content provider-portal website. For one message, content provider get 85% from the earning, and Operators get 15%.

http://tech.sina.com.cn/i/c/2003-02-10/1327164502.shtml

From Chinese New Year Eve to the 7^th day of Chinese New Year, in the 8 days, China mobile and China Unicom users total send over 7 billion messages, and China Mobile users send 6 billion and China Unicom users send 1.035 billion. And for China Mobile users, they also send 1 million MMS.

http://tech.sina.com.cn/it/t/2003-02-10/0743164435.shtml

News said China leading Computer Company Legend would cancel their investment to the co-operation Company with AOL. June 11, 2001, Legend sign a agreement with AOL to establish a Co-operation Company www.aollegend.com.cn to provide Chinese users Internet service, but until now they haven’t any improvement, and last year, AOL lost much money in their market, and legend think no need input more money on that field.

http://tech.sina.com.cn/it/m/2003-02-10/1200164499.shtml

NetEase considers HK listing, rivals watch

HONG KONG, Feb 10 (Reuters) - Chinese Web portal NetEase.com (NasdaqNM:NTES - News) said on Monday it is weighing a Hong Kong listing, and one of its top rivals said it would also consider such a move in a bid to tap Asian appetite for China-oriented shares

http://biz.yahoo.com/rc/030210/tech_china_listing_1.html

5. Yahoo will launch a new VAS service soon, it is named "Platinum Yahoo",

http://tech.sina.com.cn/i/w/2003-02-09/0848164307.shtml Chinese version.

6. MSN is testing a new searching service; the new service will make the search speek faster 65%. Nielsen/NetRatings said: last December of 2002, for US users, there are 37.30million used Google search engine, 36.50 million used Yahoo engine, and 34.30 million used MSN.

http://tech.sina.com.cn/i/w/2003-02-12/1402164965.shtml Chinese version

7. Yahoo, BT team up on broadband offer

http://reuters.co.uk/newsArticle.jhtml;jsessionid=GVDVYCST5NGK2CRBAEOCFEY?type=technologyNews&storyID=2215165

Week 3

1. Rethink on Legend-AOL China venture

Legend CFO sees over 20% growth in China IT spending

BOSTON (CBS.MW) -- AOL Time Warner's much-ballyhooed joint venture with China's top computer maker Legend Holdings is being "reassessed," but this isn't because of the U.S. media conglomerate's financial woes, said a senior Legend executive.

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7BBA8F87A8%2DBC4B%2D4240%2D8756%2DB71D8240FDE4%7D

2. SINA and Microsoft Announced Joint Short Messaging Service -- SMS -- Service for MS Office XP in China

SINA SMS services will be built into Office XP and Outlook 2002 as part of Microsoft's Office Suite's integrated mobile communication functionalities in China

http://biz.yahoo.com/bw/030214/140069_1.html

3. China Mobile plan to launch their K-JAVA service this April, K-JAVA is a language similar as the computer program language, the GPRS users can down load the JAVA program from China Mobile Website, so they can play JAVA program Game, check the stock market etc.

. http://tech.sina.com.cn/it/t/2003-02-18/1140166126.shtml Chinese version

4. AT&T is the first provider of MMS in US now, every MMS sending fee is 40C.

http://tech.sina.com.cn/it/t/2003-02-17/0919165727.shtml Chinese version

5. Overture will buy the portal website "altavista", by 80 million US dollars in Stock share and 60 million US dollars in cash.

http://it.sohu.com/38/69/article206466938.shtml Chinese version

6. Feb 18, ICQ announced that they will provider ICQ to mobile SMS services. This include German, Canada, and also include Philippines "Smart"

http://it.sohu.com/67/77/article206477767.shtml Chinese version

7. Feb 18, Strategy Analytics announced mobile market share of 2002 in the world. NO 1: NOKIA, 36.1%; NO 2: MOTOROLA, 16.8%; NO 3: SAMSUNG, 10.1%; NO 4: SIEMENS, 8.5%; and NO 5 is ERICSSON, 5.5%. And all the top 5 mobile phone companies increased their market share.

http://tech.sina.com.cn//it/t/2003-02-20/0815166640.shtml

8. China Unicom CDMA User Growth Ebbs;Handset Subsidies Fade

HONG KONG -(Dow Jones)- A shift in promotion strategy for its CDMA mobile phone system triggered a decline to 13% in subscriber growth at China Unicom Ltd.'s 12 original provincial networks in January from 21% December, the company said Thursday

http://biz.yahoo.com/djus/030220/0518000372_2.html

9. China to spend $84.6 bln on tech R&D over 5 years

BEIJING, Feb 20 (Reuters) - The Chinese government and private firms plan to spend up to 700 billion yuan ($84.6 billion) to develop key technologies in the next five years, the country's science minister said on Thursday.

http://biz.yahoo.com/rf/030220/tech_china_spending_1.html

10. China Mobile Adds 2.101 Million Users In January; Gathers Pace

HONG KONG -(Dow Jones)- China Mobile (Hong Kong) Ltd. (NYSE:CHL - News) said Thursday it added 2.101 million mobile service subscribers in January, a slim 1.7% improvement from 2.066 million new users in December.

http://biz.yahoo.com/djus/030219/2314001135_2.html

Week 4

1. Microsoft to Sign Pact With China United Telecom

BEIJING -- Microsoft Corp. (NasdaqNM:MSFT - News) is aiming to secure a place for its software in the world's largest market for mobile phones by signing a cooperation agreement with China's number two mobile operator

http://biz.yahoo.com/djus/030227/0804000535_2.html

2. SOHU Advances into Online Games with Knight Online

BEIJING, Feb. 25 /PRNewswire-FirstCall/ -- SOHU.COM Inc. (Nasdaq: SOHU - News), China's leading online media, communications, commerce and mobile value-added services company, has today announced the release of its first three-dimensional online game in China, Knight Online. SOHU's strategic advance into the online games industry coincides with the fifth anniversary of the SOHU web site (http://www.sohu.com ).
http://biz.yahoo.com/prnews/030225/lntu004_1.html

NetEase returns to profit in Q4 on games, ads

BEIJING/NEW YORK, Feb 26 (Reuters) - Chinese Internet portal NetEase.com Inc (NasdaqNM:NTES - News) said on Wednesday it returned tto profit in the fourth quarter on the back of online games, wireless text-message services and rebounding advertising sales

http://biz.yahoo.com/rc/030226/tech_china_netease_1.html

4. NetEase.com Reports Record Fourth Quarter and Fiscal Year 2002 Financial Results

http://biz.yahoo.com/bw/030225/255663_1.html

5. China Telecom logged 133 mln phone users end 2002

BEIJING, Feb 24 (Reuters) - China Telecom Group, parent of China Telecom Corp Ltd (HKSE:0728.HK - News; NYSE:CHA - News), added 22.11 million new fixed-line phone users in 2002, bringing the total number of users to 133 million, the Financial News reported on Monday.
http://biz.yahoo.com/rc/030223/telecoms_china_users_1.html

6. By the end of Jan 2003, there are total 430 million telephone users in China, and among them, there are 212 million mobile phone users, and it increased 5.82 million mobile phone users in Jan 2003.

http://tech.sina.com.cn/it/t/2003-02-22/1200167239.shtml

BANNER REPORT

Banner report of week 5: http://www.geocities.com/pinanxa/training/banners/banner5.html

Banner report of week 6:

http://www.geocities.com/pinanxa/training/banners/banner6.html

Banner report of week 7:

http://www.geocities.com/pinanxa/training/banners/banner7.html

Banner report of week 8:

http://www.geocities.com/pinanxa/training/banners/banner8.html

SEARCHING WORK

Search of the top three portal CEOs

Since it is long, so for the reference, you can check my training site:

http://www.geocities.com/pinanxa/training/weeklyreport0206.htm

Search of the data of Australia

Since it is long, so for the reference, you can check in my training site

http://www.geocities.com/pinanxa/training/weeklyreport0206.htm

Search of overseas Chinese

The total overseas Chinese population is 34,072,632.

In Asia is 28,175,752, and Philippines 2,200,000

In Europe are 1,618,640. And France 300,000

In America is 3,570,750.and US 2,000,000

In Oceania is 570,625, and Australia 454,000.

http://overseaschineseconfederation.org/databases_popdis.html

But this Chinese New Year, I watched our Center TV channel, they greeting 50 million overseas Chinese “ happy Chinese new year”.

Search of hosting company

www.net.cn is the biggest hosting company in China, it service 1/3 domain in China and 1/4 website.

Package 1: 700 RMB/2 years
you can get your own web space 100 MB, 25MB email box, and one International Domain name.
http://www.net.cn/static/hosting/sitea.asp

Package 2: 1200 RMB/ year
You can get your own web space 200 MB, support flash website and database, one International domain name, and 100 MB email box.
http://www.net.cn/static/hosting/site.asp

Package 3: 4800 RMB/ year
You can get your own web space 500 MB, support flash website and database, one International domain name, and 250 MB email box.
http://www.net.cn/static/hosting/sited.asp

Other support service: google adwords.
You pay www.net.cn, then you can get google adwords service.
Package 1: 1500 RMB/ month, you can offer one language in one country.
Package 2: 2000 RMB/ month, you can offer all language in all countries.

Search of affiliation

Here is a website very similar as GOOGLE.
www.baidu.com

This service named keyword rating.

1. This service is about you buys your keyword, and you will pay baidu by the number of clicks.

2. You need first register by 300 RMB in baidu, it is like a prepaid.evey click you need at least pay 0.30 RMB. You need check if any competitor Already use your keyword, id no any other use same keyword as yours, you just need pay 0.3 RMB for every click. and if there another company use same keyword as yours, and for example, they pay 0.35 RMB for every click, so if you still pay 0.30 for every click, your company will be the second result on the result pages, and if you pay 0.36 for every click, you will be the first result.

3. baidu support 36 mian protal or searc engine website like: SOHU, NETEASE, yahoo china,QQ, 21CN, so that means

If you if getthe service with baidu, you also get the service with other 36 website.

PRODUCT DEVELOP

Translations

1. Method translation, finish one method translation and the second one finished half.

Translated some sentences that Suzanne need.

IQ test

Checked the IQ test before launch it, and write the error report to Suzanne
Checked the IQ test personal report part when we launch it.
Choose four Chinese names for the IQ test introduction page.

Check and correct

1. Checked and corrected Suzanne’s translation of Children IQ.

2. Checked and corrected Suzanne’s translation of Worldpay.

3. Check the website that Suzanne made for SOHU,Netease and SINA.

Domain name

About the Domain name, I also chat with Suzanne, here is our comment.

D. We need not have to change 3F68 to another, since 3F68 already easy to remember.

B. For 3F68, the problem is “F” is capital word that will be easy to make the users mistake to “f”.

C. For 3F68, another problem is F is between 3 and 6, that maybe can make users to mistake to 36F8 etc..

D. If we really need to change a new one. Our Idea is we can make it like” English word+number” or “ Pin Yin+ number”, for example like “ test368” or “ceshi365”, ceshi is the Pin Yin of “test”, and 365 means one year 365 days.here is just example.

My comments of method of brainpower

A. I think this is a nice method, even some content I knew before, but still much new information makes me interested. Like the food intake and take care of your brain in the evening. For me, i always don't care my food intake and I often can't sleep well at night, now I know i need take care of that, before sleep, I will stop drinking COKE, but drink milk or honey. So that will make me sleep well. And before I knew the left brain and the right brain, so know it is important for me to develop the right brain, but I did not know how, from this method, i learn some exercises to develop that. So I think I will try following this method, hope i can improve my brainpower.

B. For this method, especially for the exercises, better it can give some picture, so that can make the reader to understand how to do the exercises, because if only descript by the language, that also often make misunderstanding happened. This is a mainly reason, why so far, i still have one exercise can't understand well.

C. Some part I think if more detail better. Like" Finally don’t forget to get enough calcium and magnesium, as these protect you from numerous toxins and helps prevent over fatigue or skull disorders.", but what food full with CA and MA? So better it can give a list of the food, so i will know what food i will intake everyday.

D. Better we can relate this article to our IQ and EQ test. Like at the beginning, we can ask the reader take the IQ test to know their brain power, and at the EQ part, we can suggest them take the EQ test etc.

E. From this article i find just few number data inside, I think most science article, better choose more number data information, so that is easy to make the reader have deep express and easy to believe.

F. About the left-brain and the right brain functions, some world is hard to understand for the normal reader, and that part better give more example or even celebrities to make the reader to understand.

LAUNCH INFORMATION

Since we started launch our IQ test on the last week of this month, so I add the launch information here.

Until Feb 27, in the past 8 days, there are total around 100 users attend our IQ test, and around 60 finished the test, and for me I got 8 reflections. Analysis this 8 users reflections, here are mainly there problems with my comments.

1. Speed. Speed is the first problem that reflected from them; even some of them use ADSL, but still slowly, so that made them waited for open the new pages. For this problem, I already searched the hosting company, and we can rent it, slow speed will reduce users interesting and waste their money, so we have to make it fast.

2. About the introduction page. One user told me the introduction page is not interesting, feel some boring. She thinks we can make it more interesting and better we make it in flash. I think the introduction page is very important, since everybody come to our website, he will see the introduction page first, if he feels boring, even he is interesting, maybe he will also leave it; and if we make it more interesting, even he is not interested, maybe he will try our test. So I agree this suggestion. Because Chinese market is a different market. If the website design with more flash, and many colors, we feel happy of that, and we think the website is nice and professional. So our introduction is a bit simple, so maybe we can do some change there?

3. About the questions pages. Two users complain about the different answers. And I report them to Rose already. And most of them complain about the questions are easy and many questions are similar. They think it is easy because most our questions are about math, because in China we see space and logic also as math, and most Chinese are good in math. That is why. About the similar questions, they think the questions like compare the different pictures, we have many that kind of questions, when they did the first one, it is interesting, and when they met more, they will feel boring.

4. About the personal report page. Since one user told me some error inside, so I checked this week, and I send them to Suzanne already.

5. Improve method. One users mention that he really wants to know how to improve him more than only know himself better. He like the test, but he want to know how to improve his knowledge and other method after the test.

OTHER THINGS

1. Attend every weekly meeting.

2. Know more about google adwords and overture,CJ.

3. Update my training site.

4. Give any reference or explain of the Chinese name or culture.