CDC Corp. Q2 Transcript

Thank you, Peter. As the Company has been continuing to evolve since our last report to our investors, I'd like to briefly review the structure and competitive positioning of China.com Inc.

We have three main lines of new media businesses in the China market: games by CDC Games; Internet portal with the URL name China.com; and mobile value-added services through CDC Mobile.

First, I'd like to draw your attention to the recent performance of CDC Games which has been particularly pleasing. As in our neighboring country, Korea, China's online gaming business has been growing exponentially over the past few years and we continue to see significant room for future growth. We're committed to further enhancing our market position and exploring new opportunities in the promising China gaming market.

Secondly, CDC Mobile provides mobile value-added services in China which is another core strategic line of business for China.com Inc. We are well positioned in China, benefiting from solid relationships with mobile network operators at the national and provincial levels. We have established national connectivity with both China Mobile and China Unicom and extensive marketing and sales networks.

Another important strategic line of business, which is our oldest business and where the Company has its roots, are our portals: www.China.com and www.HongKong.com. I'll be delving into a bit more detail about each of these business units in a moment, but first let's look at the financial highlights of China.com as a whole.