Asiaone 1-42

We have a short operating history
RISK FACTORS
We have a short operating history as a company and are still at the initial stage of development of
our business model as disclosed in the “General Information on Our Group – History” and the
“Business” sections of this Prospectus. As such, our business strategy is unproven. We cannot
guarantee that we will be successful or that we will be able to successfully compete and achieve
market acceptance or otherwise address the risk factors disclosed in this Prospectus. Our business
will be adversely affected if we are unable to successfully introduce new services and enhancements
and respond to rapid technological change. Some risks that we can be expected to encounter include
our ability to:
• sustain growth;
• introduce new and enhanced services and products;
• bring our expansion plans to fruition;
• minimise technical difficulties and system downtime; and
• respond to changes in government and legislation.
Our brands may fail to achieve broad recognition and develop the strong reputation necessary
for us to succeed in the e-commerce market
We plan to enter the evolving e-commerce market, using new and unproven business models. In
order to succeed, we must implement our business plans, which may require us to acquire companies,
integrate and build our brands, manage our expanding operations, attract new customers across
major Asian markets, respond to changes in government regulation and keep pace with technological
changes. If we fail to successfully manage these factors, we may fail to attract and retain customers,
generate revenues or develop a pan-Asian presence.
We must develop the “AsiaOne.com” and “Zaobao.com” brand names in order to attract customers
and expand our business. The number of Internet websites that offer competing portal and e-commerce
services increases the importance of establishing and maintaining “AsiaOne.com” and “Zaobao.com”
brand names recognition. The success of our brands will also depend to a large extent on our ability
to provide our customers with a high quality online experience supported by a high level of customer
service, and on our ability to enhance our advertising programmes. Our marketing and branding
strategy is detailed in the “Business – Marketing and Branding Strategy” section of this Prospectus.
If we fail to implement any of these strategies, or if we spend too much time and resources trying to
accomplish them, we will fail to attract customers and our revenues will decline.
Our joint ventures, strategic alliances and investments may not be successful
As a component of our growth strategy, we have entered into joint venture agreements and strategic
alliances as detailed in the section “Business – Joint Ventures, Strategic Alliances and Investments”
below. If the conditions precedent specified in these joint venture agreements are not satisfied by a
date mutually agreed upon, such joint ventures may not materialise. We expect to acquire companies
and assets that our Directors believe will enhance our revenue growth, operations and profitability.
Suitable candidates may not be found and we may not be able to form alliances on reasonable
commercial terms or successfully assimilate personnel, operations, products, services or technologies
into our operations. Even if we identify suitable candidates, such acquisitions by us may result in the
use of significant amounts of cash, potentially dilutive issuances of equity securities and amortisation
expenses related to goodwill and other intangible assets, each of which could materially and adversely
affect our business. Acquisitions involve numerous risks, including:
• problems with integrating and assimilating the operations, technologies, products and personnel
of the acquired business with our business;
• less focus on other business concerns due to the diversion of management’s attention;
• loss of favourable financing for future acquisitions;
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