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RISK FACTORS
We depend on a reliable Internet infrastructure
A key component of our business is dependent upon a reliable Internet infrastructure that supports
efficient data transmission and provides adequate security. If user traffic on the Internet continues to
grow, the existing infrastructure networks may be unable to cope with, and further developments of
the networks may not be able to match the increased levels of activities. In such event, the Internet
would lose its attraction as an effective communication and commercial medium. This would have a
material adverse effect on our operations.
We rely on hardware and software systems that are susceptible to failure
Any system failure or inadequacy that causes interruptions in the availability of our services, or
lengthens the response time of our services, as a result of higher traffic or otherwise, could adversely
affect user satisfaction, future traffic and the attractiveness of our services to advertisers and
consumers. As the number of our webpages and traffic increases, there can be no assurances that
we will be able to scale systems proportionately. We are also dependent upon web browsers, ISPs
and other website operators, in Asia and elsewhere, which have experienced significant system
failures and electrical outages in the past.
We do not presently have a comprehensive disaster recovery plan in the event of damage from fire,
floods, power loss, telecommunications failures, break-ins and other similar events. If any of the
foregoing occurs, we may experience a complete system shut-down. Our insurance coverage may
not be adequate to compensate us adequately for all losses that may occur in these circumstances.
To improve performance and to prevent disruption of our services, we may have to make substantial
investments to deploy additional servers or one or more copies of our websites to mirror our online
resources. To the extent that we do not address the capacity restraints described above, such
constraints could have a material adverse impact on our business and financial condition.
Our computer network is vulnerable to hacking, viruses and other disruptions
E-commerce activities constitute a significant part of our business strategy and development. We will
be in possession of confidential information of its users, such as credit card numbers, customer
profiles and transaction information, in the course of our e-commerce activities. Inappropriate use of
our Internet services could jeopardise the security of confidential information stored in our computer
system. Inappropriate use of the Internet includes attempting to gain unauthorised access to information
or systems – commonly known as “cracking” or “hacking”. Security measures implemented by us to
protect our facilities may be circumvented. Alleviating problems caused by computer viruses or other
inappropriate uses or security breaches may require interruptions, delays or cessation in our services.
If we fail to resolve the security problem, it will have an adverse impact on our reputation, business
and operating profits.
We may encounter difficulties with respect to our use of technology rights
We anticipate that we may need to obtain licences to use additional third party technology. We
cannot provide any assurance that these technology licences will be available to us on commercially
reasonable terms, if at all. Our inability to obtain any of these technology licences could delay or
compromise the introduction of new services and could materially and adversely affect our business
and financial condition.
We may be held liable for information retrieved from our portal network
As a content provider, we may face potential liability for intellectual property infringement, defamation,
invasion of privacy and other claims. We may also incur liability for unauthorised duplication or
distribution of third-party content or materials. Although we carry general liability insurance, our
insurance may not cover potential claims of this type, or may not be adequate to indemnify us for all
liability that may be imposed. Any imposition of liability that is not covered by our insurance or is in
excess of our insurance coverage could have a material adverse effect on our business and financial
condition.
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