Key Developments For Ninetowns Internet Technology Group Company Limited
Ninetowns Internet Technology Group Company Limited (NINE.O) (Consolidated Issue listed on NASDAQ Global Market)
Ninetowns Internet Technology Group Co Ltd. To Discontinue B2B Initiative And Refine Business Focus
Ninetowns Internet Technology Group Co Ltd. announced that it has undertaken a thorough review of its overall business-to-business (B2B) strategy for international trade and has decided to discontinue its tootoo.com business. This decision was made in light of the recent major changes in the global economic environment and will enable Ninetowns to better manage its investments for long-term growth. Ninetowns expects to begin winding down all services and support for tootoo.com within approximately 60 days and plans to eventually discontinue tootoo.com's B2B service offering. Ninetowns intends to re-assign existing tootoo.com personnel consisting of approximately 50 employees to other functions within Ninetowns. As a result of this decision, Ninetowns expects to record a one-time non- cash impairment charge of approximately RMB115 million against its long-lived assets and goodwill. Ninetowns is now in the process of finalizing the impairment charge with its advisors, including an independent third-party valuation specialist.
Ninetowns Internet Technology Group Co Ltd. Announces Further Progress On Integration Of Recent Acquisition
Ninetowns Internet Technology Group Co Ltd. announced that further progress has been made on the integration of its B2B business operations with its recently acquired vertical search technology provider, Ample Spring Holdings Limited (Ample Spring). There will be a reduction in functional overlaps between Ninetowns' B2B division and the new Yaphon team acquired through Ample Spring. These overlaps include a total of approximately 140 non-core administrative, operational and technical positions. The reorganization is expected to result in a reduction in headcount from the current level of approximately 900 to approximately 750 employees. Full integration is expected to be completed by the end of the year.
Ninetowns Internet Technology Group Co Ltd. Wins Open Bid For Paid Services
Ninetowns Internet Technology Group Co Ltd. announced that it has been selected by the State Administration for Quality Supervision and Inspection and Quarantine of the People's Republic of China as one of the winning bidders in connection with the PRC Inspections Administration's request for proposals for servicing the free import/export e-filing software provided by the PRC Inspection Administration. In August 2005, Ninetowns was selected as the sole import/export e-filing software vendor. As of the year end 2006, there were approximately 28,500 user accounts for the free software. These users represent the target customers for the 'post-sales' services to be provided by Ninetowns. These services include training, installation, regulatory updates, 24x7 call center support, and resolving any issues encountered by customers. Ninetowns plans to launch such services in the third quarter of 2007 and expects to charge an annual fee of approximately $300 per user account.
Ninetowns Internet Technology Group Co Ltd. Forms Strategic Partnership With Thomas Publishing Company Subsidiary
Ninetowns Internet Technology Group Co Ltd. announced that it has entered into a strategic partnership with Thomas Publishing Company, LLC's subsidiary Thomas Industrial Network, Inc. (Thomas), developer of catalog publishing solutions for industrial manufacturers, service providers, and distributors. This new partnership with Thomas is synergistic step in the development of Ninetowns' business-to-business (B2B) vertical search strategy. The strategic partnership is expected to enable manufacturers and service businesses in China to publish detailed product and service information on Ninetowns' developing B2B search and service platforms.
Ninetowns Internet Technology Group Co Ltd. Completes Acquisition of Ample Spring
Ninetowns Internet Technology Group Co Ltd. announced that has completed its acquisition of Ample Spring Holdings Limited. In accordance with the share purchase and subscription agreement Ixworth Enterprises Limited, a subsidiary of Ninetowns, made cash payments equal to the U.S. dollar equivalent of RMB85 million to Ample Spring's shareholder, and RMB2.5 million to Ample Spring, and Ninetowns received 70% of the equity interest of Ample Spring. The remainder of the purchase price consists of deferred payments that may be paid over time.
